PRINTER'S NO. 1417
No. 1226 Session of 2001
INTRODUCED BY TRELLO, YOUNGBLOOD, THOMAS, BELFANTI, MELIO,
FLICK, READSHAW, STABACK, SHANER, M. COHEN, SOLOBAY, CAWLEY,
LAUGHLIN, CALTAGIRONE, MUNDY, WALKO, J. WILLIAMS, DeWEESE,
PISTELLA, KELLER, FREEMAN, STEELMAN, HARHAI AND C. WILLIAMS,
MARCH 29, 2001
REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT,
MARCH 29, 2001
AN ACT
1 Amending the act of May 9, 1986 (P.L.165, No.53), entitled, "An
2 act requiring banks and other lending institutions to notify
3 the mortgagor when the mortgage has been paid," requiring
4 lending institutions holding mortgages for real estate to
5 forward certain real estate tax bills.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 1 of the act of May 9, 1986 (P.L.165,
9 No.53), entitled, "An act requiring banks and other lending
10 institutions to notify the mortgagor when the mortgage has been
11 paid," is amended to read:
12 Section 1. Notice requirement.
13 (a) Written notification.--
14 (1) A bank, savings bank, savings and loan association
15 or other lending institution holding a residential mortgage
16 shall send written notification by first class mail to the
17 mortgagor when the mortgage has been fully paid. Any moneys
1 remaining in any escrow account established for the payment
2 of taxes or insurance premiums shall be returned within 30
3 days to the mortgagor.
4 (2) In the event that the institution which formerly
5 held the mortgage had held funds in escrow for the payment of
6 taxes or insurance premiums, the notice to the mortgagor
7 required by this section shall include a statement to the
8 effect that it shall thereafter be the responsibility of the
9 mortgagor to notify taxing authorities and insurance
10 administrators to redirect bills to the address specified by
11 the mortgagor. Additionally, the notice shall state in bold
12 or underline print that failure to pay real estate taxes can
13 result in the property being sold at a tax sale.
14 (b) Forwarding of tax bill.--In the event that any bank,
15 savings bank, savings and loan association or other lending
16 institution receives a tax bill for any residential real
17 property on which it formerly held a mortgage within one year of
18 the date of the satisfaction of that mortgage and for which it
19 was required to comply with the provisions of subsection (a), it
20 shall forward the tax bills by first class mail, not more than
21 45 days after receipt of the bill to the last known address of
22 the property owner.
23 Section 2. This act shall take effect in 90 days.
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