A. A monthly charge may be held in escrow by a mortgagee for the payment of taxes, insurance premiums and other charges required by the terms of a mortgage subject to the restrictions in Subsection B of this section.
B. Any balance in the escrow fund, exceeding two months' total escrow charges for future taxes, insurance premiums or other required charges, plus the pro rata accrual for such taxes, premiums and other charges, upon the demand of the mortgagor but not more than once each year, shall be credited to the principal amount of the mortgage as provided in Subsection B, or as provided by the contractual agreement, within sixty days of the demand.
C. Failure of a mortgagee to credit upon demand any excess accumulation of escrow funds as provided in Subsection B of this section shall cause [a] penalty at the rate of six percent per year to run on the amount of such excess accumulation of escrow funds which penalty shall be payable to the mortgagor.
History: 1953 Comp., § 61-7-8, enacted by Laws 1971, ch. 175, § 1.
Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 28 Am. Jur. 2d Escrow § 2; 54A Am. Jur. 2d Mortgages §§ 2, 154, 155, 157.
Acceptance of past-due interest as waiver of clause in mortgage, 97 A.L.R.2d 997.
Rights in funds representing "escrow" payments made by mortgagor in advance to cover taxes or insurance, 50 A.L.R.3d 697.
59 C.J.S. Mortgages §§ 246, 418.
Structure New Mexico Statutes
Chapter 48 - Liens and Mortgages
Section 48-7-1 - Right of possession.
Section 48-7-4 - Release on record upon satisfaction of mortgage.
Section 48-7-4.1 - Alternative form of release of mortgage; filing by title insurer.
Section 48-7-5 - [Failure to release; penalty; civil liability.]
Section 48-7-6 - [Release by administrator or executor of deceased mortgagee.]
Section 48-7-7 - Sale of real property under power of sale; allowed if trustor agrees.
Section 48-7-8 - Mortgage escrow funds; limitation; credit against principal.
Section 48-7-9 - Mortgages; future advances; lien.
Section 48-7-10 - Mortgages; insurance proceeds.
Section 48-7-11 to 48-7-14 - Repealed.
Section 48-7-15 - Purpose [of "due-on-sale" law].
Section 48-7-16 - Definitions.
Section 48-7-17 - Due-on-sale generally enforceable.
Section 48-7-18 - Real property loan contract controls.
Section 48-7-19 - Limitation of enforcement of regulated due-on-sale clauses.
Section 48-7-20 - Limitation of exercise of all due-on-sale [options].
Section 48-7-21 - Security; safeguard.
Section 48-7-22 - Due-on-sale policy on nonregulated contracts.