Common use of Funds for Taxes and Insurance Clause in Contracts

Funds for Taxes and Insurance. The portion of the monthly payments which are held in escrow by Seller for the payment of real estate taxes and assessments and insurance premiums shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency, and Seller shall apply the escrowed funds to pay the escrow items. Seller may not charge for holding and applying the escrowed funds, analyzing the account or verifying the outstanding balance for the escrow items. Unless an agreement is made or applicable law requires interest to be paid, Seller shall not be required to pay Purchasers any interest or earnings on the escrowed funds. Seller shall give Purchasers, without charge, an annual accounting of the escrowed funds showing credits and debits thereto and the purpose for which each debit to the escrowed funds was made. Upon a default and a cancellation of this Contract for Deed all of the escrowed funds shall become the sole property of Seller, and Seller shall use such funds to pay for the items for which such funds were escrowed. If the amount of the escrowed funds held by Seller, together with the future monthly payments of additional escrow funds payable prior to the due dates of the items for which such funds were escrowed, shall exceed the amount required to pay the items for which such funds were escrowed when due, then the excess shall be, at Purchasers' option, either promptly repaid to Purchasers or credited against their next monthly payments due under this Contract for Deed. If the amount of the escrowed funds held by Seller is not sufficient to pay for the items for which such funds were escrowed when due, then Purchasers shall pay to Seller, in one or more payments as may be required by Seller, any amount necessary to make up the deficiency. Upon payment in full of the purchase price, Seller shall promptly refund to Purchasers any escrow funds it may hold.

Funds for Taxes and Insurance. The (a) Mortgagor shall pay into a segregated account (the "Mortgage Escrow Account"), amounts sufficient to discharge the obligations of Mortgagor under Sections 5 and 7(a) hereof as and when they become due (such amounts, the "Mortgage Escrow Amounts"). As of the date hereof, Mortgagee shall initially require payment into the Mortgage Escrow Account of a sum equal to one-twelfth of the annual insurance premiums for individual policies required to be maintained hereunder or one-twelfth of the pro-rata portion of the monthly payments which are held in escrow by Seller for the payment of real estate taxes and assessments and annual insurance premiums due under any blanket policy affording the same required coverage, for Impositions and all insurance being maintained by Mortgagor as of the Closing Date. During each month thereafter, Mortgagee shall be held in an institution require payment with respect to the deposits or accounts annual Mortgage Escrow Amounts of which are insured or guaranteed by a federal or state agencysum equal to one-twelfth thereof, so that as each installment of such premiums and Seller Impositions becoming due and payable, Mortgagor shall apply the escrowed funds have paid a sum sufficient to enable Mortgagee to pay the escrow items. Seller may not charge for holding and applying the escrowed funds, analyzing the account or verifying the outstanding balance for the escrow items. Unless an agreement is made or applicable law requires interest to be paid, Seller shall not be required to pay Purchasers any interest or earnings on the escrowed funds. Seller shall give Purchasers, without charge, an annual accounting of the escrowed funds showing credits and debits thereto and the purpose for which each debit to the escrowed funds was made. Upon a default and a cancellation of this Contract for Deed all of the escrowed funds shall become the sole property of Seller, and Seller shall use such funds to pay for the items for which such funds were escrowedsame. If the amount of such premiums and Impositions has not been definitely ascertained by Mortgagor at the escrowed funds held by Sellertime when any such monthly deposits are to be paid, together with the future monthly payments Mortgagee shall require payment of additional escrow funds payable prior to the due dates of the items for which such funds were escrowed, shall exceed the amount required to pay the items for which such funds were escrowed when due, then the excess shall be, at Purchasers' option, either promptly repaid to Purchasers or credited against their next monthly payments due under this Contract for Deed. If Mortgage Escrow Amounts based upon the amount of the escrowed funds held by Seller is not sufficient to pay such premiums and Impositions paid for the items for which preceding year, subject to adjustment as and when the amount of such funds were escrowed when due, then Purchasers shall pay to Seller, in one or more payments as may be required premiums and Impositions are ascertained by Seller, any amount necessary to make up the deficiency. Upon payment in full of the purchase price, Seller shall promptly refund to Purchasers any escrow funds it may holdMortgagor.

Funds for Taxes and Insurance. The portion Subject to applicable law or a written waiver by Lender, Borrower shall pay to Lender on the day monthly payments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein “Funds”) equal to one-twelfth of the monthly payments which are held in escrow by Seller for the payment of real estate yearly taxes and assessments (including condominium and insurance premiums planned unit developed assessments, if any) which may attain priority over this Deed of Trust, and ground rents on the Property, if any, plus one-twelfth of yearly premium installments of hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and form time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. Borrower shall not be obligated to make such payments of Funds to Lender to the extent that Borrower makes such payments to the holder of a prior mortgage or deed of trust if such holder is an institutional Lender. If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal Federal or state agency, and Seller agency (including Lender if Lender is such an institution). Lender shall apply the escrowed funds Funds to pay the escrow itemssaid taxes, assessments, insurance premiums and ground rents. Seller Lender may not charge for so holding and applying the escrowed fundsFunds, analyzing the said account or verifying the outstanding balance for the escrow items. Unless an agreement is made or applicable law requires interest to be paidand compiling said assessments and bills, Seller shall not be required to pay Purchasers any interest or earnings on the escrowed funds. Seller shall give Purchasers, without charge, an unless annual accounting of the escrowed funds Funds showing credits and debits thereto to the funds and the purpose for which each debit to the escrowed funds Funds was made. Upon a default and a cancellation of this Contract for Deed all of the escrowed funds shall become the sole property of Seller, and Seller shall use such funds to pay The Funds are pledged as additional security for the items for which such funds were escrowedsums secured by this Deed of Trust. If the amount of the escrowed funds Funds held by SellerLender, together with the future monthly payments installments of additional escrow funds Funds payable prior to the due dates of the items for which such funds were escrowedtaxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay the items for which such funds were escrowed when said taxes, assessments, insurance premiums and ground rents as they fall due, then the such excess shall be, at Purchasers' Borrower’s option, either promptly repaid to Purchasers Borrower or credited against their next to Borrower on monthly payments due under this Contract for Deedinstallments of Funds. If the amount of the escrowed funds Funds held by Seller is Lender shall not be sufficient to pay for the items for which such funds were escrowed when taxes, assessments, insurance premiums and ground rents as they fall due, then Purchasers Borrower shall pay to Seller, in one or more payments as may be required by Seller, Lender any amount necessary to make up the deficiencydeficiency in one or more payments as Lender may require. Upon payment in full of the purchase priceall sums secured by this Deed of Trust, Seller Lender shall promptly refund to Purchasers Borrower Funds held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any escrow funds it may holdFunds held by Lender at the time of application as a credit against the sums secured by this Deed of Trust.

Funds for Taxes and Insurance. The portion Subject to applicable law or a written waiver by Lender, Borrower shall pay to Lender on the day monthly payments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one-twelfth of the monthly payments which are held in escrow by Seller for the payment of real estate yearly taxes and assessments (including condominium and insurance premiums planned unit development assessments, if any) which may attain priority over this Mortgage and ground rents on the Property, if any, plus one-twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. Borrower shall not be obligated to make such payments of Funds to Lender to the extent that Borrower makes such payments to the holder of a prior mortgage or deed of trust if such holder is an institutional lender. RHODE ISLAND--SECOND MORTGAGE Page 1 of 4 If Borrower pays Funds to Lender, the Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency, and Seller agency (including Lender if Lender is such an institution). Lender shall apply the escrowed funds Funds to pay the escrow itemssaid taxes, assessments, insurance premiums and ground rents. Seller Lender may not charge for so holding and applying the escrowed fundsFunds, analyzing the said account or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the outstanding balance for Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the escrow items. Unless an time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, Seller Lender shall not be required to pay Purchasers Borrower any interest or earnings on the escrowed funds. Seller Lender shall give Purchasersto Borrower, without charge, an annual accounting of the escrowed funds Funds showing credits and debits thereto to the Funds and the purpose for which each debit to the escrowed funds Funds was made. Upon a default and a cancellation of this Contract for Deed all of the escrowed funds shall become the sole property of Seller, and Seller shall use such funds to pay The Funds are pledged as additional security for the items for which such funds were escrowedsums secured by this Mortgage. If the amount of the escrowed funds Funds held by SellerLender, together with the future monthly payments installments of additional escrow funds Funds payable prior to the due dates of the items for which such funds were escrowedtaxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay the items for which such funds were escrowed when said taxes, assessments, insurance premiums and ground rents as they fall due, then the such excess shall be, at Purchasers' Borrower's option, either promptly repaid to Purchasers Borrower or credited against their next to Borrower on monthly payments due under this Contract for Deedinstallments of Funds. If the amount of the escrowed funds Funds held by Seller is Lender shall not be sufficient to pay for the items for which such funds were escrowed when taxes, assessments, insurance premiums and ground rents as they fall due, then Purchasers Borrower shall pay to Seller, in one or more payments as may be required by Seller, Lender any amount necessary to make up the deficiencydeficiency in one or more payments as Lender may require. Upon payment in full of the purchase priceall sums secured by this Mortgage, Seller Lender shall promptly refund to Purchasers Borrower any escrow funds it may holdFunds held by Lender. If under paragraph 17 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage.