In 2000, Governor Cellucci signed into law H 2085, a bill to repeal mandating all state-chartered banks to collect real estate escrow payments from borrowers when the loan-to-value exceeds 70%. My question is does this law apply to commercial loans as well? Thank you.

There is no longer a state requirement for collection of tax escrows on mortgage loans of any type (it was never required on commercial loans); there may be a requirement to collect tax and/or insurance escrows if you participate in the secondary mortgage market.

Thanks, John.

You might want to check your lending policy and see if it requires you to escrow on commercial accounts. When I was servicing commercial mortgages, we did escrow, not because of law, but because of lending policy.