6.2-414 - (Effective October 1, 2010) Obligation of person maintaining escrow account to pay taxes and insurance; penalties. - Virginia Statutes

§ 6.2-414. (Effective October 1, 2010) Obligation of person maintainingescrow account to pay taxes and insurance; penalties.

Any lender or other person maintaining escrow accounts for the payment oftaxes or insurance, who on receipt of notice thereof, fails to make timelypayment therefor, and incurs a penalty or late charge thereon or acancellation for nonpayment if there are sufficient funds in such escrowaccount at least five days before such due date to make such payment, shallbe liable for the penalty or late charge assessed for late payment and forany loss as a result of the property being uninsured for nonpayment. Thelender or other person shall give written notice to any obligor of thepayment of such penalty or late charge within five days after such payment ismade.

(1978, c. 685, § 6.1-2.8; 2010, c. 794.)