NATIONAL MORTGAGE, FINANCING AND GUARANTEE SCHEME ACT - 1976 (SMCD 23)

    Section - 28 - Escrow Account.

    A financial institution which has granted a loan under this Decree any part of which or interest on which remains unpaid shall, unless the Bank otherwise directs, maintain in respect of the Borrower an account separate from the account through which the loan and interest thereon is paid to be known as an "escrow account" through which all payments shall be made by the Borrower to the financial institution of moneys advanced by the financial institution to or on behalf of the Borrower towards meeting expenses in respect of insurance premiums, rates, repairs and all other reasonable charges relating to the mortgaged property.