47-10.2-04. Payments from escrow - Notice - Liability of lender or escrow agent

47-10.2-04. Payments from escrow - Notice - Liability of lender or escrow agent 1. If the borrower notifies the escrow agent as provided in subsection 2, is current in loan payments, and funds in the escrow account are sufficient, the borrower may direct the escrow agent under the borrower's loan to do any of the following: a. Pay the property taxes by December thirty-first, if the escrow agent has received a tax statement for that property by December twentieth. b. Pay the property taxes on or before February fifteenth to qualify for the discount for early payment under section 57-20-09. c. Pay the property taxes when due. 2. To require the escrow agent to make payments in any of the manners specified in subsection 1, the borrower shall send, by December first, written notice to the escrow agent specifying the manner in which the borrower wants the escrow agent to make payments under subsection 1. Once notified, the escrow agent shall annually make payments in that manner unless the borrower is not current in loan payments, unless funds in the escrow account are not sufficient, or unless otherwise notified in writing by the borrower by December first. If the borrower has never provided a written notice to the escrow agent, the escrow agent shall pay property taxes as provided in subdivision b of subsection 1. 3. An escrow agent who fails to comply with a directive of a borrower under subsection 1 made within the time limitations under subsection 2 is liable to the borrower for five hundred dollars plus actual damages, costs, and reasonable attorney fees. 4. In this section, unless the context or subject matter otherwise requires: a. "Escrow agent" means a person who receives escrow payments on behalf of itself or another person. b. "Loan" means a loan under which an escrow is required by the lender to assure payment of property taxes and which is secured by a first lien real estate mortgage or equivalent security interest in a dwelling that the borrower uses as a principal place of residence, not including a mobile home.