BORROWER
SUBMITS TO LENDER FOR ITS APPROVAL A DISBURSEMENT REQUEST, TOGETHER WITH ALL
SUPPORTING DOCUMENTATION REASONABLY REQUIRED BY LENDER, AND LENDER DOES NOT
RESPOND TO BORROWER WITH ITS APPROVAL, DENIAL OR REQUEST FOR ADDITIONAL
INFORMATION WITHIN FIVE (5) BUSINESS DAYS OF LENDER'S RECEIPT OF SAID
DISBURSEMENT REQUEST, SUCH DISBURSEMENT REQUEST SHALL BE DEEMED APPROVED BY
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LENDER PROVIDED THAT THE SUBMISSION TO LENDER IS MARKED IN BOLD LETTERING WITH
THE FOLLOWING:
"LENDER'S RESPONSE IS REQUIRED WITHIN 5 BUSINESS DAYS OF RECEIPT
OF THIS NOTICE PURSUANT TO THE TERMS OF SECTION 7.1 OF A LOAN AGREEMENT BETWEEN
THE UNDERSIGNED AND LENDER".
SECTION 7.2
TAX AND INSURANCE ESCROW FUND.
BORROWER SHALL PAY TO LENDER ON EACH PAYMENT DATE (A) ONE-TWELFTH (1/12) OF THE
TAXES THAT LENDER ESTIMATES WILL BE PAYABLE DURING THE NEXT ENSUING TWELVE (12)
MONTHS IN ORDER TO ACCUMULATE WITH LENDER SUFFICIENT FUNDS TO PAY ALL SUCH TAXES
AT LEAST THIRTY (30) DAYS PRIOR TO THEIR RESPECTIVE DUE DATES, AND
(B) ONE-TWELFTH (1/12) OF THE INSURANCE PREMIUMS THAT LENDER ESTIMATES WILL BE
PAYABLE FOR THE RENEWAL OF THE COVERAGE AFFORDED BY THE POLICIES UPON THE
EXPIRATION THEREOF IN ORDER TO ACCUMULATE WITH LENDER SUFFICIENT FUNDS TO PAY
ALL SUCH INSURANCE PREMIUMS AT LEAST THIRTY (30) DAYS PRIOR TO THE EXPIRATION OF
THE POLICIES (SAID AMOUNTS IN (A) AND (B) ABOVE ARE HEREINAFTER CALLED THE "TAX
AND INSURANCE ESCROW FUND").
THE TAX AND INSURANCE ESCROW FUND AND THE MONTHLY
DEBT SERVICE PAYMENT AMOUNT, SHALL BE ADDED TOGETHER AND SHALL BE PAID AS AN
AGGREGATE SUM BY BORROWER TO LENDER.
LENDER WILL APPLY THE TAX AND INSURANCE
ESCROW FUND TO PAYMENTS OF TAXES AND INSURANCE PREMIUMS REQUIRED TO BE MADE BY
BORROWER PURSUANT TO THIS AGREEMENT AND UNDER THE MORTGAGE.
IN MAKING ANY
PAYMENT RELATING TO THE TAX AND INSURANCE ESCROW FUND, LENDER MAY DO SO
ACCORDING TO ANY BILL, STATEMENT OR ESTIMATE PROCURED FROM THE APPROPRIATE
PUBLIC OFFICE (WITH RESPECT TO TAXES) OR INSURER OR AGENT (WITH RESPECT TO
INSURANCE PREMIUMS) OR FROM BORROWER WITHOUT INQUIRY INTO THE ACCURACY OF SUCH
BILL, STATEMENT OR ESTIMATE OR INTO THE VALIDITY OF ANY TAX, ASSESSMENT, SALE,
FORFEITURE, TAX LIEN OR TITLE OR CLAIM THEREOF, PROVIDED, HOWEVER, LENDER SHALL
USE REASONABLE EFFORTS TO PAY SUCH REAL PROPERTY TAXES SUFFICIENTLY EARLY TO
OBTAIN THE BENEFIT OF ANY AVAILABLE DISCOUNTS OF WHICH IT HAS KNOWLEDGE.
IF THE
AMOUNT OF THE TAX AND INSURANCE ESCROW FUND SHALL EXCEED THE AMOUNTS DUE FOR
TAXES AND INSURANCE PREMIUMS, LENDER SHALL, IN ITS SOLE DISCRETION, RETURN ANY
EXCESS TO BORROWER OR CREDIT SUCH EXCESS AGAINST FUTURE PAYMENTS TO BE MADE TO
THE TAX AND INSURANCE ESCROW FUND.
ANY AMOUNT REMAINING IN THE TAX AND
INSURANCE ESCROW FUND AFTER THE DEBT HAS BEEN PAID IN FULL SHALL BE RETURNED TO
BORROWER.
IN ALLOCATING SUCH EXCESS, LENDER MAY DEAL WITH THE PERSON SHOWN ON
THE RECORDS OF LENDER TO BE THE OWNER OF THE PROPERTY.
IF AT ANY TIME LENDER
REASONABLY DETERMINES THAT THE TAX AND INSURANCE ESCROW FUND IS NOT