Good afternoon!
We are in the process of closing on a mortgage on a property that has had a septic system failure. We will execute a holdback agreement for the funds. We haven't encountered this situation and are looking to confirm whether the holdback funds can be held in a general ledger account or whether we need to open an interest-bearing account. We have looked for guidance in the Mass General Laws but haven't been able to find anything.
If anyone can help with a citation or regulatory reference, it would be greatly appreciated.
Thank you!

I can find nothing specific. It would be just a standard holdback/escrow agreement. Talk to you legal counsel or title company.

Thank you! That does help. We will look to counsel. Thanks again!