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20120065G
<br />Lender may, at any time, collect and hold amounts for F�crow Items in an aggregate amount not to excee� the
<br />maximum amount that may be required for Borrowe�'s esaow account under the Rea1 Estate Settlem�t Proc�es
<br />Act of 1974, 12 U.S.C. Se�tion 2601 et seq. and implemeating regulations, 24 CFR Part 3500, as they may be
<br />amendefl from time to time ("RESPA"), except that the cushion or reserve permittefl by RESPA for imanticipated
<br />disbursements or disbursements before the Borrower's payments are available in the account may not be based on
<br />amounts due for the mortgage ;n.c��n� premium.
<br />If the amounts held by Lender for Escrow Items �c�d the aznoimts pennitted to be held by RESPA, L�der
<br />shall a�unt to Honower for the exc�s funds as require� by RESPA. If the amoimts of fimds held by Lender at any
<br />time are not sut�cient to pay the Escrow Items when due, Lender may notify the Bonower and require Boaower to
<br />make up the shortage as permitted by RESPA
<br />The Escrow Funds are pledged as additional security for all suins secured by this Se�urity Instrumeat. If
<br />Bonower tenders to Lender the full payment of all such sums, Borrower' s acxount shall he crerlitefl with the balanc�
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance preirrium installment that Lender has
<br />not ba;ome obligated to pay to the Se�retazy, and Lender shall promptly refund any excess funds to Borrower.
<br />Immediately prior to a for�losure sale of the Properiy or its acquisition by Lender, Borrower's accoimt shall be
<br />credited with any balance remaining for all installments far items (a), (b), and (c).
<br />3. Application of Paymen�. All paymenLs under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the
<br />Secretary instead of the monthly mortgage insurance premiimn;
<br />Second, to any taxes, special assessments, leasehold payments ar ground rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />� to interest due under the Note;
<br />Fourt to amortization of the principal of the Note; and
<br />Fift to late cliarges due under the Note.
<br />4. Fire, Flood and Other Hazard Insarance. Borrower shall insure a11 improvements on the Property, whether
<br />now in existence or subsequently ereated, against any �aards, casualties, and contingencie.s, including fire, for which
<br />I,ender requires insurance. This insurance shall be �tA;ned in the amounts and for the periods that Ix,nder
<br />requires. Borrower shall also insure all improvements on the Properiy, whether now in existence or subsequendy
<br />erected, against loss by floods to the extent required by the Secretary. All insurance shall be c�rried with compani�
<br />approved by Lender. The insarance policies and any renewals shall be held by Lender and shall include loss payable
<br />clauses in favor o� and in a form acceptable to, Lender.
<br />In the event of loss, Boaower shall give I.ender immediate notice by mail. Lendet may make pr�f of loss if not
<br />made promptly by Borrower. Each insurance company concemed is hereby authorized and dire�ted to make payment
<br />for such loss directly to Lender, instead of to Borrower and to Lender joinfly. All or any part of the insurance
<br />proceeds may be applied by Lender, at its option, either (a) to the refluction of the indebtedness under the Note and
<br />ttris Security Instinuneirt, first to any delinquent amowrts applied in the order in pazagraph 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application of the pra�eds to the
<br />principal shall not extend or postpone the due date of the monthly payments which are referred to in paragcaph 2, or
<br />change the amount of such payments. Any excess insurance praceeds over an amount required to pay all o�anding
<br />indebtedness under the Note and this Se�urity Instrument shall be paid to the entity legally entitle� thereto.
<br />In the event of fore�losure of this S�urity Instrument or other transfer of title to the Property that extingaishes
<br />the indebtedness, a11 right, title and interest of Borrower in and to insurance policies in force shall pa� to the
<br />purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Appl�cation;
<br />Leaseholds. Bonower sl�all occupy, establish, and use the Property as Borrower's principal residence within sixt}+
<br />days after the �ecution of this Security Instrument (or witbin sixty days of a later sale or transfer of the Property)
<br />and shall continue to occixpy the Property as Borrower' s principal residence for at least one year after the date of
<br />occupancy, unless Lender determines t1�at requirement will cause undue hardship for Boaower, or w�less extenuating
<br />circumstances exist wluch are beyond Borrower's control. Horrower shall notify I.ender of any ext.�uating
<br />circumstances. Borrower shall not commit waste or de.4troy, damage or substantially change the Property or allow the
<br />Property to deteriorate, reasonable wear and tear excepte�. Lender may inspect the Property if the Property is vacant
<br />or abandoned or the loan is in default. Lender may take reasonable action to prote,ct and preserve such vacant or
<br />2200202789 � D V4NNE
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