NY Banking L § 14-B (2021)
2021 New York Laws BNK - Banking Article 2 - Department of Financial Services; Superintendent of Financial Services; Supervisory and Regulatory Powers 14-B - Power of the Superintendent of Financial Services to Prescribe Minimum Rate of Interest on Mortgage Escrow Accounts.

§ 14-b. Power of the superintendent of financial services to prescribe   minimum   rate  of  interest  on  mortgage  escrow  accounts.    1.  The   superintendent shall have the power to prescribe, from time to time  but   not  more  often  than once in every three month period, by regulation a   minimum rate of, and method or  basis  of  computing,  interest  that  a   mortgage  investing  institution shall be required to pay on each escrow   account maintained with respect to a mortgage on a  one  to  six  family   residence  occupied  by  the  owner  or  on  any  property  owned  by  a   cooperative apartment corporation, as defined in subdivision  twelve  of   section  three hundred sixty of the tax law, (as such subdivision was in   effect on December thirtieth, nineteen hundred sixty),  and  located  in   this  state,  which  rate  shall  be  greater  than the rate of interest   required to be  paid  under  section  5-601  or  5-602  of  the  general   obligations law.2.  In  making  such  determination  the superintendent shall consider   pertinent economic and cost factors including, but not limited  to:  (i)   current  yields  on  short term investments, (ii) current dividend rates   paid on regular savings accounts throughout this state, (iii)  currently   prevailing  interest  rates  on  conventional  and insured or guaranteed   mortgage loans in this state, (iv) cost factors  in  maintaining  escrow   accounts  and (v) such other pertinent economic or cost factors that the   superintendent  shall   deem   to   be   appropriate.   Prior   to   the   superintendent's  prescription of any such minimum rate of interest, the   superintendent shall issue a statement  in  writing  setting  forth  the   economic  and  cost  data  and criteria upon which such determination is   based. Prior to making such determination, the superintendent may invite   presentation, by interested persons, of information and data relating to   economic and cost factors relevant to such minimum rate of interest.3.  The  superintendent  may  promulgate  such  regulations   as   the   superintendent  deems  necessary  and proper to implement and define the   provisions of this section. The superintendent may prescribe the minimum   rate of interest from time to time, but not more often than once in  any   three-month period, and shall provide reasonable notice to the public of   any  change  in  the  rate  of  interest,  of the effective date of such   change, which shall be not less than seven days following  the  adoption   of  such  change  by  the  superintendent, and of any rule or regulation   adopted pursuant to this subdivision.4. In no event shall  interest  be  required  to  be  paid  on  escrow   accounts  where  (i)  there  is a contract between the mortgagor and the   mortgage investing  institution,  entered  into  before  the  date  this   subdivision shall have become a law which contains an express disclaimer   of  an  obligation  on the part of the mortgage investing institution to   pay interest on such accounts, or (ii)  the  payment  of  such  interest   would  violate any federal law or regulation, or (iii) such accounts are   maintained with a mortgage servicing company,  neither  affiliated  with   nor  owned  in  whole  or in part by the mortgage investing institution,   under a written contract, entered into before the date this  subdivision   shall  have  become  a  law, which contract does not permit the mortgage   investing institution to earn or receive a return from the investment of   such accounts.5. "Mortgage investing institution" as used in  this  section  and  in   section  5-601  or  5-602  of the general obligations law shall mean and   include any bank, trust company, national bank,  savings  bank,  savings   and  loan  association,  federal  savings  and loan association, private   banker, credit union, investment  company,  insurance  company,  pension   fund,  mortgage  company or other entity which makes, extends or holds a   mortgage on any one to six family residence occupied by the owner or any   property owned by a cooperative apartment  corporation,  as  defined  in    subdivision  twelve  of  section three hundred sixty of the tax law, (as   such subdivision was in effect on December thirtieth,  nineteen  hundred   sixty), and located in this state.6.  "Escrow  account"  as used in this section and in section 5-601 or   5-602 of the general obligations law shall mean any account  established   pursuant  to  an  agreement between a mortgagor and a mortgage investing   institution  whereby  the  mortgagor  pays  to  the  mortgage  investing   institution  or  his  designee  amounts  to  be  used for the payment of   insurance premiums, water rents or any similar charges, and  shall  also   include real property tax escrow accounts as defined in title three-A of   article nine of the real property tax law.7.  "One  to  six  family  residence"  as  used in this section and in   section 5-601 or  5-602  of  the  general  obligations  law  shall  mean   property  used  primarily  for  residential  purposes  for  one  to  six   families, including property held in  condominium  form,  and  which  is   occupied in whole or in part by the owner.8.  If  any  provision  of  this  section,  or the application of such   provision to any individual, company, corporation or circumstance, shall   be held invalid, the remainder of this section, and the  application  of   such  section  to individuals, companies, corporations, or circumstances   other than those to which it is held  invalid,  shall  not  be  affected   thereby.