escrow accounts for taxes, insurance, and other expenses

escrow accounts for taxes, insurance, and other expenses Sec. 505. (a) Section 501 of the Housing Act of 1949 is amended by adding at the end thereof the following new subsection: “(e) The Secretary may establish procedures whereby borrowers under this title may make periodic payments for the purpose of taxes, insurance, and such other necessary expenses as the Secretary may deem appropriate. Such payments shall be held in escrow by the Secretary and paid out by him at the appropriate time or times for the purposes for which such payments are made. The Secretary shall notify a borrower in writing when his loan payments are delinquent.”. (b) The second sentence of section 502 (a) of such Act is amended by inserting before the period at the end thereof the following: “and on the borrower preparing to the Secretary as escrow agent, on terms and conditions prescribed by him, such taxes, insurance, and other 88 Stat. 694 expenses as the Secretary may require in accordance with section 501(e)”. (c) Section 517 of such Act is amended— (1) by striking out “as it becomes due” in the first sentence of subsection (d); (2) by striking out “prepayment” and “prepayments” each place they appear in subsection (j)(1) and inserting in lieu thereof “payment” and “payments”, respectively; and (3) by inserting before the semicolon at the end of subsection (j)(1) the following: “or until the next agreed annual or semi-annual remittance date”.