67

(a) Every mortgagee, banking or lending institution requiring a mortgagor to maintain an escrow account for the purpose of paying taxes, insurance or improvements or for insurance settlements or on behalf of the mortgage property, shall pay to or to the account of such mortgagor, interest on the average quarterly balance of such escrow fund at the rate of the prevailing percentage rate credited to the bank's passbook savings accounts.\n(b) Any mortgage, bank or lending institution that knowingly violates the provisions of this section shall be fined not more than $25 per account for each day the interest is not credited to the escrow account.