Existing defects Sample Clauses

Existing defects. If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B, we may amend Schedule B to show them. If we do amend Schedule B to show these defects, liens or encumbrances, we shall be liable to you according to Paragraph 4 below unless you knew of this information and did not tell us about it in writing.

Existing defects. Rural Develop- ment does not provide any warranty on property sold from inventory. Subse- quent loans may be made, in accord- ance with applicable loan making regu- lations for the respective loan pro- gram, to correct defects. [50 FR 23904, June 7, 1985, as amended at 53 FR 27837, July 25, 1988] Where Rural Development owned property is subject to taxation, taxes and assessment installments will be prorated between Rural Development and the purchaser as of the date the title is conveyed in accordance with the conditions of Forms RD 1955–45 or RD 1955–46. The purchaser will be re- sponsible for paying all taxes and as- sessment installments accruing after the title is conveyed. The County Su- pervisor or District Director will ad- vise the taxing authority of the sale, the purchaser’s name, and the descrip- tion of the property sold. Only the prorata share of assessment install- ments for property improvements (water, sewer, curb and gutter, etc.) ac- crued as of the date property is sold will be paid by Rural Development for inventory property. At the closing, payment of taxes and assessment in- stallments due to be paid by Rural De- velopment will be paid from cash pro- ceeds Rural Development is to receive as a result of the sale or by voucher and will be accomplished by one of the following: (a) For purchasers receiving Rural Development credit and required to es- crow, Rural Development’s share of ac- crued taxes and assessment install- ments will be deposited in the pur- chaser’s escrow account. (b) For purchasers not required to es- crow, accrued taxes and assessment in- stallments may be: (i) Paid to the local taxing authority if they will accept payment at that time; or (ii) Paid to the purchaser. If appro- priate, for program purchasers, the funds can be deposited in a supervised bank account until the taxes can be paid.