Insurance and taxes.

CFR · 2024-01-01 · US · Title 7

(a) (b) (1) At loan closing, prior to loan approval, applicants must provide documentary evidence that insurance requirements have been met. The borrower must maintain insurance in accordance with requirements of their loan or grant documents and this section until the loan is repaid or the terms of the grant expire. (2) Insurance companies must meet the requirements of paragraph (e) of this section. (3) Insurance coverage amount, terms, and conditions must meet the requirements of paragraph (f) of this section. (4) The Agency must be named as loss co-payee on all property insurance policies where it holds first lien position. The Agency must be named as an additional insured if its lien position is other than first. (c) (1) The Agency will obtain insurance for Agency financed property if the borrower fails to do so. If borrowers refuse to pay the insurance premium, the Agency will pay the insurance premium and charge the premium payment amount to the borrower's Agency account and will place the borrower in default as described in § 3560.452(c). (2) If borrowers habitually fail to pay premiums in a timely manner, the Agency will require borrowers to escrow amounts appropriate to pay insurance premiums. (3) If insurance that meets the Agency's specified requirements is not available (e.g., flood or hurricane insurance), the Agency may accept the insurance policy that most nearly conforms to established requirements. (4) If the best insurance policy a borrower can obtain at the

official document · source cfr-2024 · id 7:§ 3560.105