CO SB142

Amends Colorado Revised Statutes 39-1-119 to align state law with federal Real Estate Settlement Procedures Act (RESPA) requirements for escrow accounts holding ad valorem property taxes.

Replaces the previous three-twelfths refund threshold with a requirement that escrow funds be limited to amounts permitted under 12 U.S.C. Section 2601 et seq. and applicable federal rules.

Requires excess escrow funds to be refunded to property owners at the time and in the manner required by federal law and regulations.

Applies this requirement to all deeds of trust, mortgages, or other agreements encumbering real property in Colorado, whether or not federal RESPA would otherwise apply.

Includes a safety clause declaring the act necessary for immediate preservation of public peace, health, and safety.