Common use of Reserve (Tax and Insurance) Accounts Clause in Contracts

Reserve (Tax and Insurance) Accounts. The Escrow Agent is not responsible for the payment of taxes, assessments, insurance premiums or other items, unless this Escrow Agreement expressly establishes a reserve account. If a reserve account is established, the Escrow Agent shall have no duty to pay any taxes, assessment, insurance premium or other billing for which the reserve account is established. In the event the parties fail to provide the billing information and/or there are not adequate funds in the reserve account to pay any item due, the Escrow Agent shall not be responsible for making any payment. The Escrow Agent is not responsible for the deposit, procurement, maintenance or renewal of insurance policies, riders or clauses, nor for the sufficiency thereof. The Escrow Agent is not responsible to advise the parties whether the amount to be paid into the reserve account is sufficient to pay the items to be paid through the reserve account. The parties shall promptly notify the Escrow Agent of any changes in the amount to be paid into the reserve account. Notwithstanding any other provision of this agreement, in no event shall the Escrow Agent be obligated to advance funds or payments. The Escrow Agent shall not be responsible for payment of any penalties or late fees. Escrow Agent shall not be responsible or obligated to solicit or collect past due payments. Escrow Agent is authorized to confirm receipt of deposits made into the reserve account. THE PARTIES EXPRESSLY ACKNOWLEDGE THAT THEY ARE SOLELY RESPONSIBLE TO ENSURE THAT APPLICABLE PROPERTY TAXES ARE PAID AND THAT REQUIRED INSURANCE COVERAGE IS MAINTAINED.