WILLIAM DONALD SCHAEFER, Governor                      Ch. 724

BORROWER. PAYMENTS MADE BY THE LENDER IN CONJUNCTION WITH THE

MORTGAGE SHALL BE CONSISTENT WITH THE TRUST.

(C) (1) A LENDER SHALL KEEP EACH ESCROW ACCOUNT HELD IN
CONNECTION WITH A MORTGAGE SEPARATE AND APART FROM THE REGULAR
FUNDS OF THE LENDER.

(2) COMMINGLING OF THE MONEY OF ANY ESCROW ACCOUNT
HELD IN CONNECTION WITH OTHER MONEY IS A VIOLATION OF THE TRUST
IMPOSED UNDER SUBSECTION (B) OF THIS SECTION. HOWEVER, A LENDER
MAY PLACE CONSIDERATION RECEIVED IN CONNECTION WITH MORE THAN 1
MORTGAGE INTO A SINGLE ESCROW ACCOUNT.

(B) (1) FUNDS IN ANY ESCROW ACCOUNT SHALL BE KEPT SEPARATE
FROM AND MAY NOT BE COMMINGLED WITH THE FUNDS OF THE LENDER.

(2)  A LENDER MAY PLACE ESCROW FUNDS RECEIVED IN
CONNECTION WITH MORE THAN ONE MORTGAGE INTO A SINGLE ESCROW
ACCOUNT.

(3)  IN THE EVENT OF THE BANKRUPTCY OF THE LENDER, ANY
ESCROW FUNDS PLACED IN ANY ESCROW ACCOUNT UNDER THIS SECTION MAY
NOT BE CONSIDERED TO BE PART OF THE BANKRUPT ESTATE OF THE
LENDER.

[(b)] (D) (C) A lender[, or the assignee of the lender,]

may not impose a collection fee or service charge on the

maintenance of an escrow account on a first mortgage [or first
deed of trust ] .

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1989.

Approved May 25, 1989.

CHAPTER 724

(House Bill 1091)

AN ACT concerning

State Crustacean

FOR the purpose of designating the Maryland blue crab
(Callinectes sapidus) as the State crustacean.

BY repealing and reenacting, with amendments,

Article - State Government

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