6-115. Insurance premium transmitters; timely
payment required; civil penalty
A. A person who contracts to receive a payment that includes an amount for payment
of a mortgage, deed of trust or any other obligation secured by real estate and any
amounts to be tendered for payment of an insurance policy premium, a property tax
assessment or any other collateral obligation shall make timely payment of those amounts,
except as provided in subsection C of this section.
B. Monies collected for payment of an insurance policy premium, a property tax
assessment or any other collateral obligation shall be such that the total of the
payments collected for each category during the insurance, tax or other period will
approximate the actual insurance premium, tax or other payment when due.
C. A person who contracts to receive and tender monies as described in subsection A
of this section and who receives a delinquent payment from the payor shall exercise
reasonable diligence in tendering those payments and is not subject to a penalty for
failure to make a timely payment of those monies when first due.
D. A person who violates this section is subject to a civil penalty under section
6-132.
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