(1) Every lender of money, whether a natural person or an artificial entity, whose loans are secured by a mortgage on real estate located within the state and who receives funds incidental thereto or in connection therewith for the payment of property taxes or hazard insurance premiums when the funds are held in escrow by or on behalf of the lender, shall promptly pay the taxes or insurance premiums when the taxes or premiums become due and adequate escrow funds are deposited, so that the maximum tax discount available may be obtained with regard to the taxable property and so that insurance coverage on the property does not lapse.
(2) If an escrow account for the taxes or insurance premiums is deficient, the lender shall notify the property owner within 15 days after the lender receives the notification of taxes due from the county tax collector or receives the notification from the insurer that a premium is due.
(3)(a) If the lender, as a result of neglect, fails to pay any tax or insurance premium when the tax or premium is due and there are sufficient escrow funds on deposit to pay the tax or premium, and if the property owner suffers a loss as a result of this failure, then the lender is liable for the loss; except, however, that with respect to any loss which would otherwise have been insured, the extent of the liability shall not exceed the coverage limits of any insurance policy which has lapsed.
(b) If the lender violates paragraph (a) and the premium payment is not more than 90 days overdue, the insurer shall reinstate the insurance policy, retroactive to the date of cancellation, and the lender shall reimburse the property owner for any penalty or fees imposed by the insurer and paid by the property owner for purposes of reinstating the policy.
(c) If the lender violates paragraph (a) and the premium payment is more than 90 days overdue or if the insurer refuses to reinstate the insurance policy, the lender shall pay the difference between the cost of the previous insurance policy and a new, comparable insurance policy for a period of 2 years. If the lender refuses, the lender is liable for the reasonable attorney’s fees and costs of the property owner for a violation of this section.
(4) At the expiration of the annual accounting period, the lender shall issue to the property owner an annual statement of the escrow account.
History.—s. 1, ch. 76-12; s. 1, ch. 77-174; s. 1, ch. 84-52; s. 3, ch. 2004-370; s. 149, ch. 2004-390; s. 23, ch. 2006-213.
Structure Florida Statutes
Title XXXIII - Regulation of Trade, Commerce, Investments, and Solicitations
Chapter 501 - Consumer Protection
Part I - General Provisions (Ss. 501.001-501.171)
501.001 - Florida Anti-Tampering Act.
501.005 - Consumer report security freeze.
501.0051 - Protected consumer report security freeze.
501.011 - Credit cards; unsolicited delivery or mailing prohibited.
501.0113 - Unsolicited goods; no obligation on part of recipient.
501.0118 - Restrictions on information printed on receipts for payment-card transactions; penalties.
501.012 - Health studios; legislative findings.
501.0125 - Health studios; definitions.
501.013 - Health studios; exemptions.
501.014 - Health studios; powers and duties of the department.
501.015 - Health studios; registration requirements and fees.
501.016 - Health studios; security requirements.
501.017 - Health studios; contracts.
501.018 - Health studios; change of ownership or location.
501.019 - Health studios; penalties.
501.021 - Home solicitation sale; definitions.
501.022 - Home solicitation sale; permit required.
501.025 - Home solicitation sale; buyer’s right to cancel.
501.031 - Home solicitation sale; written agreement.
501.035 - Home solicitation sale; exclusions.
501.041 - Home solicitation sale; restoration of down payment.
501.045 - Home solicitation sale; duty of buyer.
501.046 - Home solicitation sale; duty of businesses conducting home solicitation sales.
501.047 - Home solicitation sale; prohibited practices.
501.052 - Home solicitation sale; enforcement authority; injunctive relief.
501.053 - Home solicitation sale; judicial review.
501.055 - Home solicitation sale; penalties.
501.057 - Commercial Weight-Loss Practices Act; short title.
501.0571 - Commercial Weight-Loss Practices Act; definitions.
501.0573 - Weight-loss provider requirements.
501.0575 - Weight-Loss Consumer Bill of Rights.
501.0577 - Commercial Weight-Loss Practices Act; exemptions.
501.0579 - Commercial Weight-Loss Practices Act; unlawful practices.
501.0581 - Commercial Weight-Loss Practices Act; civil remedies.
501.059 - Telephone solicitation.
501.122 - Control of nonionizing radiations; laser; penalties.
501.135 - Consumer unit pricing.
501.137 - Mortgage lenders; tax and insurance payments from escrow accounts; duties.
501.1377 - Violations involving homeowners during the course of residential foreclosure proceedings.
501.138 - Advertising of previews or trailers; standards.
501.141 - Delivery of crated goods; written statement of satisfaction; right to cancel.
501.142 - Retail sales establishments; preemption; notice of refund policy; exceptions; penalty.