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 portion of Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum (“Funds”) for: (a) yearly taxes and assessments which are held may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums. if any; (e) yearly mortgage insurance premiums, if any; and (f) any sums payable by Borrower to Lender, in escrow by Seller for accordance with the provisions of paragraph 8, in lieu of the payment of real estate taxes mortgage insurance premiums. These items are called “Escrow Items.” Lender may, at any time, collect and assessments hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage loan may require for Xxxxxxxx’s escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. § 2603 et seq. (“RESPA”), unless another law that applies to the Funds set a lesser amount. If so, Lender may, at any time, collect and insurance premiums hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law. The Funds shall be held in an institution the whose deposits or accounts of which are insured or guaranteed by a federal or state agency, and Seller instrumentality, or entity (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank, Lender shall apply the escrowed funds Funds to pay the escrow itemsEscrow Items. Seller Lender may not charge Borrower for holding and applying the escrowed fundsFunds, annually analyzing the account escrow account, or verifying the outstanding balance Escrow items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. However, Lender may require Borrower to pay a one-time charge for the escrow itemsan independent real estate tax reporting service used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Seller Lender shall not be required to pay Purchasers Borrower any interest or earnings on the escrowed fundsFunds. Seller Borrower and Xxxxxx may agree in writing, however, that interest shall be paid on the Funds 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 The Funds are pledged as additional security for all sums secured by this Contract for Deed all of Security Instrument. If the escrowed funds Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall become the sole property of Seller, and Seller shall use such funds account to pay Borrower for the items for which such funds were escrowedexcess Funds in accordance with the requirements of applicable law. If the amount of the escrowed funds 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, Lender 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 any time is not sufficient to pay for the items for which such funds were escrowed Escrow Items when due, then Purchasers Lender may so notify Borrower in writing, and, in such case Borrower shall pay to Seller, in one or more payments as may be required by Seller, any Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve monthly payments, at Xxxxxx’s sole discretion. Upon payment in full of the purchase priceall sums secured by this Security instrument, Seller Lender shall promptly refund to Purchasers Borrower any escrow funds it may holdFunds held by Xxxxxx. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument.