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Deposits and Disbursements of Funds. Before the closing date, each party shall deposit with <br />the closing agent all funds required to be paid by such party to close the transaction, less any earnest <br />money previously deposited with the real estate agent. The closing agent is authorized, but not required, <br />to consider a lending institution's written commitment to deposit funds as the equivalent of a deposit of <br />such funds, if all conditions of the commitment will be met on or before the closing date. All funds <br />deposited with the closing agent shall be deposited in an escrow trust account with a bank doing business <br />in the State of Washington. <br />The parties hereby acknowledge that except as provided by Supreme Court Admission to Practice <br />Rule 12.1 and 12.1 (h) adopted in 1995, the money deposited with closing agent by them in connection <br />with this escrow will be further deposited into a non -interest bearing account with a financial institution <br />("the funds depository") whose deposits are covered by FDIC insurance. The parties further acknowledge <br />that in calculating the amount of available insurance, the FDIC will consolidate moneys deposited under <br />this escrow with all other funds of the undersigned which are on deposit with the funds depository. The <br />parties do therefore release closing agent from any liability and assume all responsibility for any loss to <br />themselves which may result from a lack of FDIC insurance in excess of $250,000.00. The parties <br />acknowledge that the Closing Agent may receive incidental benefits from the financial institution based on <br />the existence of its escrow trust account deposits. <br />The closing agent shall not be required to disburse any funds deposited by check or draft until it <br />has been advised by its bank that such check or draft has been honored. RCW 18.44.070 provides that <br />an escrow agent shall not make disbursements until the next business day after the business day on <br />which the funds are deposited unless the deposit is made in cash, by interbank electronic wire transfer, or <br />in a form that permits conversion of the deposit to cash on the same day the deposit is made. All <br />disbursements shall be made by the closing agent's check or, if the payee so instructs in writing, by <br />electronic wire transfer. <br />Funds will be disbursed as quickly as possible following closing. In many instances disbursement <br />will occur on the next business day. International wire transfers may not be disbursed until the second <br />business day following closing. Escrow will determine the most expedient and secure method to remit <br />loan payoff funds. Due to growing concerns of wire fraud, payoff funds may be remitted by overnighting a <br />check rather than via wire transfer. Accounts may not show paid in full until a few days after closing. <br />Rainier Title will not be responsible for accrual of interest, late fees, or other charges for which you are <br />responsible in the interim. <br />Settlement Statement. The closing agent is instructed to prepare a preliminary, estimated <br />settlement statement showing all funds deposited for the account of each of the parties and the proposed <br />disbursements from such funds. No funds shall be disbursed until the parties have examined and <br />approved the settlement statement. Some items may be estimated, and the final amount of each <br />estimated item will be adjusted to the exact amount required to be paid at the time of disbursement. The <br />settlement statement will be subject to audit and any errors or omissions may be corrected at any time. If <br />any monetary error is found, the amount will be immediately paid by the party liable for such payment to <br />the party entitled to receive it. <br />Pro -rations. Adjustments or pro -rations of real estate taxes, and other charges if any, which <br />appear on the Title Report, shall be made on the basis of a 365 day year, unless the closing agent is <br />otherwise instructed in writing. <br />Title Insurance. The closing agent shall order or obtain copies and forward to the parties as <br />applicable, a Preliminary Commitment for the Title Insurance on the property (referred to herein as "the <br />title report"), together with copies of the exceptions noted thereon. The parties shall be responsible to <br />review these items for accuracy, a verification of the legal description, and to determine their acceptability <br />for purposes of closing. <br />Verification of Existing Encumbrances. The closing agent is permitted to request a written <br />statement from the holder of each existing encumbrance on the property, verifying its status, terms, <br />balance owing and, if it will not be removed at closing, the requirements that must be met to obtain a <br />waiver of any due -on -sale provision. The closing agent is authorized to rely upon such written statements <br />in the performance of its duties, without liability or responsibility for their accuracy or completeness. The <br />Closing Agent may further rely upon any verbal update to a written payoff statement provided by an <br />existing lender and the borrower agrees to indemnify Closing Agent for payoff amounts which may be <br />regarded as incomplete or inaccurate by the lender upon receipt. <br />Page 2of6 <br />