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<br /> if thc a�nount9 held by Len.der for Escrow Itcros cacc�:d �ho amounts permitted to bc held by RESAA, Lcnder
<br /> shall account to Bonower for the cxcess funds as required by RFSPA• [f thc amounts of funds hcld by l.cndor at any
<br /> time are not suff�.cicnt to pay the Escrow Items wUen due, i.ender may nocify tl�a Borrower and requirc Aorrower to
<br /> make up the shortage as permitted by RESPA.
<br /> Tde Escrow Funds are pledged us additional sccurity far all sams secured by tttis Security lnstntment. lf
<br /> Borrower tenders to Leader the il�ll pay�nent af all suci�sttms,Banower's account shul!be endited with tha balnnce
<br /> nmaining for all installment items(a). (b), �►d(c)and any mortgagc insurance prcmium inscallment that I.cnder has
<br /> not become obllgated to pay to the Socret�uy, and Lendur shall promptty refund any excess funds to Borcower.
<br /> Inunediately prior to a foreclosure sale of die Prap�rty or its acqulsition by Lendcr, Aorrower's account shall be
<br /> credited with any balance remalning for all installments for items(a),(b),and(c).
<br /> 3.Applicatlon of P'aYments.All paymeats undcr paragrphs 1 and 2 sbnll 6e applied by Lender as fallowa:
<br /> �,to thc mortgagc insurance prcmium to be paid by Lendcr w tt►e Secretary or to the monthly cherga by thc
<br /> Secretary irstead of the monthly mortgage insurance prmuium;
<br /> �d, to any taxes,special assessments,leaschold paymenta or ground rents,and Crc,flood and othcr hazard
<br /> Insurance pr�miums+as reclu�d:
<br /> �Q,to intercat due under the Note;
<br />- gqy�,to amortization of the principal of the Noto;and
<br /> �,to late charges due under the Note.
<br /> 4,Fyre,�loocl and Other Haz�rd Insurance.Bnnower ehall insure all improvements on the Proporty,whether
<br /> now in e�cistence or subseyuently erected,against any hazards.cesuulties,and contingencies, including tiro,for which
<br /> I.ender roquires fasurance. This insurance shall be maintaincd in the amounts and fot the pedods that Lender
<br /> requlres. Bnrrower shall also insure all improvements on the Praperty,�whether now ii�����°H��c mpanies
<br /> erected,against loss by tloods to the eatent reguircd by ti►o�.�t�r• �� �w�•���--- � -
<br /> approval by L.ender.The insura��ce polic[es and any renewals shall be held by Lender and shdl includa iross payabIt
<br /> clauses in favor of, and in n form aaeptable to, I.ender.
<br /> In the event of loss,Bonower shall give Lender immaliatc nodce by mai1.I..snder may m�lco proof of loss if not
<br /> made pmmptly by Borrower.Eoch u�surance comPanY coneeraed is h�rcby nuthorized and direec� f t�he°iasurance
<br /> for sa�:hh loss dlrxdy to Lender, instead of to Borcower and to Lendcr Jointly. All or any p
<br /> procooda mxy be applisd by Lender, at its optfan,etthor(a) to tho ceduction of the indebtedn�ss onder tfie Note and
<br /> this Securiry Instnunent,first to any dclinquent anwunts appllod in the order in paragraph 3,and thcn to prepaym�nt
<br /> of principal, or(b)to the restoration or rep�ir of ttto dumagcd Property• Any applicadan of the pinceed+ to the
<br /> principal shall not cxtend or pos[pone the due dace of the monthly paymcnte which arc refernd to in paragcaph 2. or
<br /> chaage the amount of such paynunts.My excess insurance proce�ds over an amount required to pay all outstanding
<br /> inclebtedness under the Note and this Security Instrument shall be paid ro the entity legally entitled therctb.
<br /> Ity,the event of fU•rxlosun of this Secutlty i��stnuncnt orotbcr transfer of title to the Property tttat extinguiahes
<br /> the indebtalnes�, �ll right. t[de and interest of Bonow�r in and to l�nsurance polfciea in force sbai! pau to the
<br /> purchaser. ���
<br /> S� paapncy,preservatMn�� Maiatenwna ond Protcctlon of the Proper�y; BorroNa''s Lo�w �PP
<br /> u�seholdg. Borrower sheli occupY.escablish.and use the Propetty as Borrower's principal residenve within sixty
<br /> days after the execudon of this Security Insttument (or within sixty days of a later sale or transf�r of the Property)
<br /> and ahall eontlnue to oce�py 'che Pral�ercY as Bocrower's principal residenee for at least oae year after the date of
<br />— occupancy,unlas Lender determines that requirement will cause undue hardship for Bonower. or�uiloss cxtenuating
<br />— circumstwces exist which aze btyond Botrower's contral. Borcower ahall nntify l,ender of any extenuating
<br /> m
<br /> circumstances.Barro��ver shall not commit waste or destroy.damage ar substant6ally change tde Pcoperty or allow
<br /> L'�op�rty to deudorace,reasonable wear and tear exceQ�ed• under may inspect the Property if the Pco�eny is vacant
<br /> or abandoned or the loan is ia default. Lender may take rea�onable xtion to protect and preservc sneh vacant or
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