Common use of Escrow Conditions Clause in Contracts

Escrow Conditions. Mortgage Investments will be funded through an escrow account handled by a title insurance company or by Redwood Mortgage, subject to the following conditions: (a) Satisfactory title insurance coverage will be obtained for all loans, with the title insurance policy naming the Partnership as the insured and providing title insurance in an amount at least equal to the principal amount of the loan. (Title insurance insures only the validity and priority of the Partnership's deed of trust, and does not insure the Partnership against loss by reason of other causes, such as diminution in the value of the security property, over appraisals, etc.). (b) Satisfactory fire and casualty insurance will be obtained for all loans, naming the Partnership as loss payee in an amount equal to cover the replacement cost of improvements (See "RISK FACTORS - Uninsured Losses"). (c) The General Partners do not intend to arrange for mortgage insurance, which would afford some protection against loss if the Partnership foreclosed on a loan and there were insufficient equity in the security property to repay all sums owed. If the General Partners determine in their sole discretion to obtain such insurance, the minimum loan-to-value ratio for residential property loans will be increased (See P▇▇▇▇▇▇▇▇ ▇ ▇▇▇▇▇). (▇) All loan documents (notes, deeds of trust, escrow agreements, and any other documents needed to document a particular transaction or to secure the loan) and insurance policies will name the Partnership as payee and beneficiary. Mortgage Investments will not be written in the name of the General Partners, Redwood Mortgage or any other nominee.

Escrow Conditions. Mortgage Investments will be funded through an escrow account handled by a title insurance company or by Redwood Mortgage, subject to the following conditions: (a) Satisfactory title insurance coverage will be obtained for all loans, with the title insurance policy naming the Partnership as the insured and providing title insurance in an amount at least equal to the principal amount of the loan. (Title insurance insures only the validity and priority of the Partnership's deed of trust, and does not insure the Partnership against loss by reason of other causes, such as diminution in the value of the security property, over appraisals, etc.). (b) Satisfactory fire and casualty insurance will be obtained for all loans, naming the Partnership as loss payee in an amount equal to cover the replacement cost of improvements (See "RISK FACTORS - Uninsured Losses"). (c) The General Partners do not intend to arrange for mortgage insurance, which would afford some protection against loss if the Partnership foreclosed on a loan and there were insufficient equity in the security property to repay all sums owed. If the General Partners determine in their sole discretion to obtain such insurance, the minimum loan-to-value ratio for residential property loans will be increased (See P▇▇▇▇▇▇▇▇▇ ▇ ▇▇▇▇▇). (▇) All loan documents (notes, deeds of trust, escrow agreements, and any other documents needed to document a particular transaction or to secure the loan) and insurance policies will name the Partnership as payee and beneficiary. Mortgage Investments will not be written in the name of the General Partners, Redwood Mortgage or any other nominee.