Escrow for Insurance & Taxes on Commercial Property?

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Question:

We have a customer's home mortgage that is cross-collateralized with the their commercial building. The mortgage is now going to require escrowing for hazard insurance and property taxes. Do we also have to escrow for the insurance and taxes on the commercial building?

Answer:

Assuming that the loans themselves are separate, notwithstanding the cross collateralization, whether you need to escrow for taxes and insurance on the commercial building is a matter of bank policy, loan agreement language and any state law on the question.