House Bill No. 1064 amends existing laws regarding the disbursement of insurance proceeds for damages to residential properties in Louisiana. The bill mandates that mortgagees or mortgage servicers promptly endorse insurance settlement checks made payable to both the mortgagee and the borrower-payee, and it requires that these proceeds be deposited into a segregated account at a federally insured financial institution. Additionally, the bill stipulates that insurance settlement proceeds related to contents insurance and additional living expenses must be distributed promptly to the borrower-payee. It also introduces civil penalties for non-compliance and outlines the process for releasing excess funds upon request from the borrower-payee.

Key changes include the requirement for mortgagees to notify borrower-payees of the conditions for releasing insurance proceeds and to conduct property inspections within a specified timeframe. The bill also clarifies the definition of "excess funds" and reduces the timeline for returning these funds from thirty to fifteen business days. Furthermore, it establishes that interest will accrue on settlement proceeds held in escrow for more than thirty days, and it ensures that the provisions apply to both state-chartered and federally chartered financial institutions, while excluding those cases where the borrower is in default or foreclosure.

Statutes affected:
HB1064 Original:
HB1064 Engrossed:
HB1064 Reengrossed:
HB1064 Enrolled:
HB1064 Act :