PRINTER'S NO. 3495
No. 2595 Session of 1982
INTRODUCED BY GANNON, MICOZZIE, ARTY, ALDEN, NOYE, PETRARCA,
PRATT, MORRIS, PISTELLA, OLASZ, MICHLOVIC, WILSON, SALVATORE,
DAVIES, MERRY, PERZEL, WOGAN AND DURHAM, JUNE 9, 1982
REFERRED TO COMMITTEE ON BUSINESS AND COMMERCE, JUNE 9, 1982
AN ACT
1 Amending the act of January 30, 1974 (P.L.13, No.6), entitled
2 "An act regulating agreements for the loan or use of money;
3 establishing a maximum lawful interest rate in the
4 Commonwealth; providing for a legal rate of interest;
5 detailing exceptions to the maximum lawful interest rate for
6 residential mortgages and for any loans in the principal
7 amount of more than fifty thousand dollars and Federally
8 insured or guaranteed loans and unsecured, noncollateralized
9 loans in excess of thirty-five thousand dollars and business
10 loans in excess of ten thousand dollars; providing
11 protections to debtors to whom loans are made including the
12 provision for disclosure of facts relevant to the making of
13 residential mortgages, providing for notice of intention to
14 foreclose and establishment of a right to cure defaults on
15 residential mortgage obligations, provision for the payment
16 of attorney's fees with regard to residential mortgage
17 obligations and providing for certain interest rates by banks
18 and bank and trust companies; clarifying the substantive law
19 on the filing of and execution on a confessed judgment;
20 prohibiting waiver of provisions of this act, specifying
21 powers and duties of the Secretary of Banking, and
22 establishing remedies and providing penalties for violations
23 of this act," requiring the payment of interest on certain
24 escrow accounts.
25 The General Assembly of the Commonwealth of Pennsylvania
26 hereby enacts as follows:
27 Section 1. The act of January 30, 1974 (P.L.13, No.6),
28 referred to as the Loan Interest and Protection Law, is amended
1 by adding a section to read:
2 Section 409. Interest on Escrow Accounts.--Any residential
3 mortgage lender who requires that a residential mortgage debtor
4 pay into an escrow account, held by the lender, sums for the
5 payment of property taxes or assessments or property insurance
6 premiums, shall pay interest on such escrow account at the rate
7 of five and one-quarter per cent per annum. Such interest rate
8 may from time to time be changed by concurrent resolution of the
9 General Assembly.
10 Section 2. This act shall take effect in 60 days.
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