Where funds are exhausted or there is an insufficient balance determination, the Mortgagee must notify the Borrower, in writing, within 15 calendar days of the annual analysis of the determination that remaining funds are exhausted or insufficient.
The Borrower is responsible for future payment of property charges when the funds of a Fully-Funded Life Expectancy Set-Aside account are insufficient or no longer available.
For Partially-Funded Life Expectancy Set-Aside accounts, the Borrower continues to be responsible for paying property charges from other income sources.
The notice to the Borrower shall include:
- The remaining Set-Aside balance; and
- For adjustable interest rate Home Equity Conversion Mortgages (HECM), the remaining funds shall be transferred to a Line of Credit.
- For fixed interest rate HECMs, the remaining funds shall not be disbursed to the Borrower.