Ch. 723

LAWS OF MARYLAND

CHAPTER 7 23

(House Bill 1088)

AN ACT concerning

Escrow Accounts - Mortgages --Trusts - Commingling

FOR the purpose of imposing a trust upon certain consideration
received by certain persons for escrow accounts held in
connection with a mortgage; requiring that certain payments
from those escrow accounts be consistent with the trust;
providing that commingling of certain funds is a violation
of trust providing that certain funds in any escrow shall be
kept separate from and may not be commingled with the funds
of the lender; permitting the lender to place certain escrow
funds received in connection with more than one mortgage
into a single escrow account; providing that, in the event
of the bankruptcy of the lender, certain escrow funds may
not be considered part of the bankrupt estate of the lender;
defining certain terms; and generally relating to escrow
account funds held in connection with a mortgage.

BY repealing and reenacting, with amendments,

Article - Commercial Law

Section 12-109.2

Annotated Code of Maryland

(1983 Replacement Volume and 1988 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Commercial Law

12-109.2.

(a) (1) In this section [the term "escrow] THE FOLLOWING
TERMS HAVE THE MEANINGS INDICATED.

(2)   "ESCROW account" has the meaning [indicated]
STATED in § 12-109 of this subtitle.

(3)   "LENDER" INCLUDES A LENDER AND ASSIGNEE OF A
LENDER.

(4)   "MORTGAGE" INCLUDES A MORTGAGE AND A DEED OF
TRUST.

(B) ANY CONSIDERATION RECEIVED BY A LENDER IN CONNECTION
WITH A MORTGAGE SHALL BE HELD IN TRUST FOR THE BENEFIT OF THE

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