KRS 286.8-130: Escrow account -- Interest -- Accounting.

(1) All moneys paid to the mortgage loan company for payment of taxes or insurance

premiums on property which secures any loan made or serviced by the mortgage

loan company shall be deposited in an account which is insured by the Federal

Deposit Insurance Corp oration or any other account acceptable to the Federal

National Mortgage Association or the United States Department of Housing and

Urban Development or the Government National Mortgage Association or the

United States Department of Veterans Affairs and ke pt separate, distinct, and apart

from funds that belong to the mortgage loan company. The funds, when deposited,

shall be designated as an "escrow account" or under some other appropriate name

indicating that the funds are not the funds of the mortgage loan company.

(2) Any interest earned on funds deposited into an escrow account under subsection (1)

shall belong to the borrower and shall be applied to the expenses to be paid from the

account.

(3) The mortgage loan company shall, upon reasonable notice, ac count to any debtor

whose property secures a loan made by the mortgage company for any funds which

that person has paid to the mortgage loan company for the payment of taxes or

insurance premiums on the property in question.

(4) The mortgage loan company s hall, upon reasonable notice, account to the

commissioner for all funds in the company's escrow account.

(5) Escrow account funds shall not be subject to execution or attachment on any claim

against the mortgage company. It shall be unlawful for any mortga ge company to

knowingly keep or cause to be kept any funds or money in any bank under the

heading of "escrow account" or any other name designating the funds or money

belonging to the debtors of the mortgage loan company, except actual funds paid to

the mo rtgage loan company for the payment of taxes and insurance premiums on

property securing loans made or serviced by the company.

(6) Payments to the debtor's escrow account shall be promptly and properly credited.

All escrowed taxes, insurance, and other it ems shall be paid in a timely fashion and

not later than the statutory or contractual deadline applicable thereto.