N.Y. Real Property Tax Law § 955: Payments by mortgage investing institutions; receipts

§ 955. Payments by mortgage investing institutions; receipts. 1. A

mortgage investing institution which receives moneys from a mortgagor

for deposit into a real property tax escrow account shall be liable to

such mortgagor, upon failure to pay such taxes, for the amount of the

taxes plus penalties and interest imposed thereon.

2. A mortgage investing institution may pay the taxes due on more than

one parcel by a single instrument, provided the instrument is

accompanied by a detailed list of the specific parcels to which the

instrument is to be applied, each parcel identification number and the

amount of tax to be paid with respect to each parcel. If the face value

of the instrument is at least equal to the total intended payment as

indicated by such list, but the total intended payment does not equal

the total amount of taxes actually due on the parcels on the list, the

collecting officer shall accept the instrument and record as paid the

taxes due on each parcel for which the amount offered as set forth in

such list is at least equal to the amount due on such parcel. The lien

on each remaining parcel on such list shall not be discharged or

diminished by the acceptance of such instrument. The collecting officer

shall forthwith advise the mortgage investing institution or its agent

that the taxes on the remaining parcels remain unpaid, and shall

identify the parcels on the list upon which taxes remain unpaid. The

amount of the tender which has not been applied to the payment of taxes

shall be either retained to be applied toward tax payments or refunded.

3. No later than three weeks after a tax has been paid by a mortgage

investing institution pursuant to this title, the collecting officer

shall deliver, mail, or, subject to the provisions of section one

hundred four of this chapter, transmit electronically a receipt to the

mortgagor for whom the real property tax escrow account is maintained.

Each such receipt shall be in the same format as a statement of taxes,

except that the word "Paid" (or an equivalent word or words) and the

date of payment shall be clearly displayed thereon. The receipt may also

display, if the collecting officer so elects, the name, title and

signature (or initials) of the collecting officer or of the authorized

subordinate who received the payment.

4. Notwithstanding the provisions of any other law to the contrary,

and except in a school district, if a mortgage investing institution has

failed to pay the taxes of its mortgagor by the date the warrant of the

collecting officer expires, the collecting officer shall provide the

name of such mortgage investing institution with the return of

delinquent taxes delivered to the public official charged by law with

the duty of enforcing the collecting of delinquent real property taxes.

Thereafter, whenever such officer publishes a notice pertaining to the

enforcement of delinquent taxes against a parcel listed on such return,

and the name of the mortgagor is included therein, the name of the

mortgage investing institution shall also be included.