                                 CODE OF VIRGINIA

OBLIGATION OF PERSON MAINTAINING ESCROW ACCOUNT TO PAY TAXES AND INSURANCE;
PENALTIES (§ 6.2-414)

Any lender or other person maintaining escrow accounts for the payment of taxes
or insurance, who on receipt of notice thereof, fails to make timely payment
therefor, and incurs a penalty or late charge thereon or a cancellation for
nonpayment if there are sufficient funds in such escrow account at least five
days before such due date to make such payment, shall be liable for the penalty
or late charge assessed for late payment and for any loss as a result of the
property being uninsured for nonpayment. The lender or other person shall give
written notice to any obligor of the payment of such penalty or late charge
within five days after such payment is made.

HISTORY: 1978, c. 685, § 6.1-2.8; 2010, c. 794.