301.04

Investments and Interest

Requirements

You must:

  • comply with the interest-bearing requirements per the Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. when establishing accounts;
  • not invest Custodial AccountCustodial AccountAccount established by the Servicer for depositing P&I payments, T&I payments, and escrow, reserve, or other funds received from the Borrower per any Loan Document, including the: Collateral Agreement; Multifamily Loan Agreement; or Security Instrument. funds, other than typical demand deposit or money market account earnings (e.g., interest); and
  • when required by law or the Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. , pay the BorrowerBorrowerPerson who is the obligor per the Note. Custodial AccountCustodial AccountAccount established by the Servicer for depositing P&I payments, T&I payments, and escrow, reserve, or other funds received from the Borrower per any Loan Document, including the: Collateral Agreement; Multifamily Loan Agreement; or Security Instrument. earnings.

Operating Procedures

You may establish interest-bearing Custodial AccountsCustodial AccountsAccount established by the Servicer for depositing P&I payments, T&I payments, and escrow, reserve, or other funds received from the Borrower per any Loan Document, including the: Collateral Agreement; Multifamily Loan Agreement; or Security Instrument. if:

  • they comply with all applicable local, state, and federal laws and regulations regarding BorrowerBorrowerPerson who is the obligor per the Note. funds;
  • funds can be withdrawn on demand without prior notice; and
  • either
    • there is no early withdrawal penalty, or
    • the number of withdrawals is limited, but you are responsible for any excess withdrawal penalties.

Guidance

You may retain any Custodial AccountCustodial AccountAccount established by the Servicer for depositing P&I payments, T&I payments, and escrow, reserve, or other funds received from the Borrower per any Loan Document, including the: Collateral Agreement; Multifamily Loan Agreement; or Security Instrument. earnings you are not required to pay the BorrowerBorrowerPerson who is the obligor per the Note. .