Common use of Establishment of Custodial Account; Deposits in Custodial Account Clause in Contracts

Establishment of Custodial Account; Deposits in Custodial Account. Pending disbursement to the Owner of Loan payments received by the Contractor, the Contractor shall segregate and hold all funds collected and received pursuant to each Loan separate and apart from any of its own funds and general assets. All such payments received shall be held by the Contractor as custodian for the Owner. Such funds shall not be subject to any liens or charges of any kind in favor of Contractor or any person claiming through Contractor, other than the payment of Contractors Servicing Fee pursuant to the terms of Section 5.01 hereof.