§ 956. Additional liabilities of mortgage investing institutions. 1. In addition to any other remedies permitted by law, a mortgagor whose taxes are to be paid by means of a real property tax escrow account pursuant to this title may bring an action against the mortgage investing institution maintaining such account for the mortgagor under the provisions of this section if payments for real property taxes have not been made for one hundred eighty days after the date such taxes have become due and payable. If a court shall find, after considering the circumstances of the failure of a mortgage investing institution to pay the real property taxes of a mortgagor pursuant to an escrow agreement, that such failure was due to the negligence or intentional acts of the mortgage investing institution, its agent, or both, the court may award the mortgagor injunctive relief and liquidated damages in an amount equal to three times the tax not paid within such one hundred eighty day period but in no event greater than six thousand dollars.

Terms Used In N.Y. Real Property Tax Law 956

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage investing institution: means any bank, trust company, national bank, savings bank, savings and loan association, federal savings bank, federal savings and loan association, private banker, credit union, federal credit union, investment company, pension fund, licensed mortgage banker or any other entity which maintains a real property tax escrow account for real property located in this state. See N.Y. Real Property Tax Law 952
  • Mortgagor: means a person having title to and occupying a one to six family residence which is located in this state and is subject to a mortgage. See N.Y. Real Property Tax Law 952
  • Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • taxes: means a charge imposed upon real property by or on behalf of a county, city, town, village or school district for municipal or school district purposes, including a special ad valorem levy, special assessment or any similar charge. See N.Y. Real Property Tax Law 952

2. In addition to any other violations provided by law, if a mortgage investing institution through negligence or intentional acts fails to pay real property taxes for more than one hundred eighty days after the date such taxes become due and payable, it shall constitute a separate violation of this title.

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