A BILL for an Act to create and enact three new sections to chapter 47-10.2 of the North Dakota Century Code, relating to the payment of interest on escrow accounts for residential mortgages; to amend and reenact section 47-10.2-01 of the North Dakota Century Code, relating to definitions for escrow accounts; to provide a penalty; and to provide for application.

Changed from creating a new chapter to amending existing Chapter 47-10.2 of the North Dakota Century Code.

Added new definitions for 'Servicer' and 'Surplus amount' to clarify who manages escrow accounts and what constitutes excess funds.

Expanded the definition of 'Lender' to include credit unions and explicitly excluded the North Dakota housing finance agency from the interest payment requirements.

Added an opt-out provision allowing borrowers to waive interest payments if their mortgage agreement permits it in exchange for reduced rates or benefits.

Reorganized the bill structure from three sections to five sections for improved clarity and legislative organization.