State Codes and Statutes
Statutes > New-hampshire > TITLEXXXV > CHAPTER393 > 393-18-aAny such corporation may pay taxes, assessments, insurance premiums, and other charges for the protection of the real estate loans it services and such payments may either be added to the balance of the real estate loan or carried as a separate account and all such payments shall be equally secured by the mortgage on the property. It may also require the borrower to pay monthly in advance in addition to interest and principal payments, the equivalent of 1/12 of the estimated annual taxes, assessments, insurance premiums, and any other charges upon the real estate securing a loan, so as to enable the bank or association to pay such charges as they become due from the funds so received. The amount of such monthly charges may be increased or decreased so as to provide reasonably for the payment of these expenses. Any such corporation at its option may hold such funds in escrow and commingle them with other such funds and use the same for such purposes or credit such funds as received to the mortgage account. If the funds are credited to the mortgage account the bank or association may also charge against the mortgage account the amount of any of the aforementioned payments. Any such funds held in escrow shall be pledged to further secure the indebtedness and if held in open account or credited to the loan account the sums when advanced for the purposes stated shall be secured by the mortgage with the same priority as the original amount advanced under the mortgage.
Source. 1967, 202:1, eff. Aug. 13, 1967.
