Escro funds Clause Samples
An escrow funds clause establishes that certain funds will be held by a neutral third party (the escrow agent) until specific conditions outlined in the agreement are met. In practice, this means that a buyer might deposit payment into an escrow account, and the seller will only receive the funds once they have fulfilled their contractual obligations, such as delivering goods or services. This arrangement protects both parties by ensuring that payment is only released when agreed-upon terms are satisfied, thereby reducing the risk of non-performance or fraud.
Escro funds. Any funds remain- ing in the borrower’s escrow account at the time of liquidation by voluntary conveyance or foreclosure are non- refundable and will be credited to the borrower’s loan account. [50 FR 23904, June 7, 1985, as amended at 56 FR 6953, Feb. 21, 1991, 57 FR 36590, Aug. 14, 1992]
(a) The borrower-owner is a member of the tribe that has jurisdiction over the reservation in which the real prop- erty is located. An Indian tribe may also meet the borrower-owner criterion if it is indebted for Farm Credit Pro- grams loans.
(b) A voluntary conveyance will be accepted only after all preacquisition primary and preservation servicing ac- tions have been considered in accord- ance with subpart S of part 1951 of this chapter.
(c) When all servicing actions have been considered under subpart S of part 1951 of this chapter and a positive out- come cannot be achieved, the following additional actions are to be taken:
(1) The county official will notify the Native American borrower-owner and the tribe by certified mail, return re- ceipt requested, and by regular mail if the certified mail is not received, that:
(i) The borrower-owner may convey the real estate security to FSA and FSA will consider acceptance of the property into inventory in accordance with paragraph (d) of this section.
(ii) The borrower-owner must inform FSA within 60 days from receipt of this notice of the borrower and owner’s de- cision to deed the property to FSA;
(iii) The borrower-owner has the op- portunity to consult with the Indian tribe that has jurisdiction over the res- ervation in which the real property is located, or counsel, to determine if State or tribal law provides rights and protections that are more beneficial than those provided the borrower- owner under Agency regulations;
(2) If the borrower-owner does not voluntarily deed the property to FSA, not later than 30 days before the fore- closure sale, FSA will provide the Na- tive American borrower-owner with the following options:
(i) The Native American borrower- owner may require FSA to assign the loan and security instruments to the Secretary of the Interior. If the Sec- retary of the Interior agrees to such an assignment, FSA will be released from all further responsibility for collection of any amounts with regard to the loans secured by the real property.
(ii) The Native American borrower- owner may require FSA to complete a transfer and assumption of the loan to the tribe having jurisdiction over the reservation in ...