I don't know if it is strictly necessary, for me it works with these permissions:
700 (or drwx------) for the folder (folder2 in your case)
600 (or -rw-------) for the private_key file.
Both owned by the user and group that runs the tor process.
2 of 2
clarifying that ypu must chgrp dir to tor group as well
Jobiwan
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