Except as provided in 71-1-114, if a lending institution requires a borrower under a mortgage or trust indenture of real property to include in the borrower's regular payment additional payment into a reserve fund held by the lending institution for the future payment of property taxes, insurance premiums, and other expenses, the amount of funds on reserve may not exceed 110% of the projected amount needed to pay those expenses.
Mont. Code Ann. § 71-1-113
Limit on the amount of funds on reserve
Applied in 1 court decision — leading case 667 F. Supp. 719 - Bergkamp v. New York Guardian Mortgagee Corp. (1987)
Most recently applied in 667 F. Supp. 719 - Bergkamp v. New York Guardian Mortgagee Corp. (August 1987)
En
Official source: Montana Code Annotated (Montana Legislature). Reproduced from public-domain Montana statutes; confirm against the official source for the current text. Not legal advice.