LRB-1320/1
RPN:jrd:jlb
1995 - 1996 LEGISLATURE
January 26, 1995 - Introduced by Representatives Musser, Zukowski, Lehman,
Turner, Harsdorf, Travis, Vander Loop, Kreuser, Owens, Gronemus, R.
Young, Boyle, Albers, Wirch, Bock, Ott, Wilder, Freese, Notestein,
Brandemuehl, Ziegelbauer and Hasenohrl, cosponsored by Senators
Drzewiecki, Wineke, Chvala, Cowles and
Panzer. Referred to Committee on
Financial Institutions.
AB40,1,3
1An Act to repeal and recreate 45.79 (4) (c) of the statutes,
relating to:
2requiring the payment of interest on escrow accounts on veteran mortgage
3loans.
Analysis by the Legislative Reference Bureau
Current law exempts lenders from paying interest on escrow accounts on loans
made under the veterans mortgage loan program. This bill requires those lenders
to pay interest on any escrow account on loans made under the veterans mortgage
loan program. The amount of interest paid is a variable rate calculated as the
average of the regular passbook account interest rate paid by financial institutions.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB40, s. 1
4Section
1. 45.79 (4) (c) of the statutes is repealed and recreated to read:
AB40,1,105
45.79
(4) (c) Notwithstanding s. 138.052 (8), a bank, credit union, savings bank,
6savings and loan association or mortgage banker that originates a loan under this
7section beginning on the effective date of this paragraph .... [revisor inserts date],
8shall pay interest on the outstanding principal balance on an escrow account to
9ensure the payment of taxes or insurance at a rate equal to the interest rate
10published under s. 138.052 (5) (am) 2. c.
