In addition to the conditions and requirements of Regulations .06 and .07 of this chapter, secured loans shall meet the requirements of §§B—F of this regulation. Deed of Trust. A mortgage or deed of trust shall secure repayment of the loan by the granting of a valid lien on the eligible building and the underlying land or leasehold interest in the land. Escrow Account. If there is no prior mortgage or deed of trust requiring the payment of expenses to the mortgagee, the rehabilitation mortgage may require expense payments to the Department in escrow, consisting of 1/12 of annual real estate taxes, ground rent, property insurance premiums, and, when appropriate, other items for which payments are required by the Department. Interest need not be paid to the borrowers on escrows. Insurance. A borrower shall maintain fire and extended coverage insurance at the borrower's expense in an amount not less than the sum of the rehabilitation loan and any prior mortgage or mortgages on the property. The insurance policy or policies shall: Be written by companies authorized to transact business in the State; Be in force at the time of loan closing; Name the Department as mortgagee in a standard mortgagee clause attached to or printed in the policy; and Contain other terms and coverage satisfactory to the Program. Title Insurance. The Department, in its discretion, may require the borrower to provide a standard American Land Title Association (ALTA) Loan policy, with the Environmental Endorsement 8.1, or other form of title policy approved by the Department and the Office of the Attorney General for an amount equal to the maximum principal amount of the loan, insuring the Department, evidencing that title to the building on the date of closing is vested in the borrower, and containing only standard exceptions and encumbrances acceptable to the Department and the Office of the Attorney General. Appraisals. At the discretion of the Program Director or the local administrator, a borrower may be required to obtain an appraisal in a form and manner acceptable to the Department from an acceptable independent fee appraiser showing a building's value before and after the proposed rehabilitation. Applicants shall bear the costs of appraisals, which may be financed by the loan for single family owner-occupants.