Construction Loan Escrow Agreement Template (Page 3 of 5) in pdf

VIII.

General Conditions: At any time prior to its commencement of disbursement of funds hereunder, the Escrowee

reserves the right to decline commencement of disbursement of funds, if First American Title Insurance Company

declines any risk offered for insurance hereunder, whereupon Escrowee shall return to Lender any documents in

its possession relating to such loan and the funds received by it. Commencement of disbursement makes this

agreement effective as to all funds received and disbursed on the construction in question.

Where, after the first disbursement, a further title search reveals a subsequently arising exception over which

First American Title Insurance Company is unwilling to insure, Escrowee will notify the Lender and may

discontinue disbursement until the exception has been disposed of to the satisfaction of the Lender.

A mechanic's lien claim over which First American Title Insurance Company is required to insure hereunder does

not warrant a discontinuance of disbursement.

Escrowee has no liability for loss caused by an error in the certification furnished it hereunder as to work in place.

Escrowee shall not be responsible for any loss of documents or funds while such documents or funds are not in

its custody. Documents or funds deposited in the United States mail shall not be construed as being in custody of

the Escrowee.

In the event of default as declared by the Lender and/or foreclosure by the Lender, Escrowee shall have the right

to discontinue further disbursements under this agreement.

Interest, income or other benefits, if any, earned or derived from the funds deposited shall belong to First

American Title Insurance Company, First American Title Insurance Company may deposit all funds received

hereunder to one or more of its general accounts. First American Title Insurance Company shall be under no duty

to invest or reinvest any funds, at any time, held by it pursuant to the terms of this agreement.

IX.

The undersigned agree that this Construction Loan Escrow Agreement is not intended by any of the undersigned

to give any benefits, rights, privileges, actions or remedies to any person, partnership, firm or corporation other

than First American Title Insurance Company,

(Lender), and

(Owner/Borrower), as a third party beneficiary or otherwise under any theory of law.

Lender:

Owner/Buyer:

By:___________________________________________

Its:___________________________________________

By:___________________________________________

Accepted: First American Title Insurance Company

National Commercial Services, Escrowee

By:___________________________________________

Name:________________________________________ Office:________________________________________

Construction Loan Escrow Agreement Template Page 3