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20�2031�
<br />2. Monthly Payment of Texes, Insurance and Other Charges. Borrower shall include in each monttily
<br />payment, together with the principal and interest as set forth in the Note and any late charges, a sum for
<br />(a) taxes and special assessments levied or to be levied against the Property, (b) leasehold payments or
<br />ground rents on the Property, and (c) premiums for insurance reyuired under paragraph 4. In any year in
<br />which the Lender must pay a mortgage insurance premium to the Secretary of Housing and Urban
<br />Development ("Secretary"}, or in any year in which such prettuum would have been required if Lender still
<br />held the Security Instrument, each monthly payment shall also include either: (i) a sum for the annual
<br />mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monttily charge instead of a
<br />mortgage insurance premium if this Security Instrument is held by the Secretary, in a reasonable amount to
<br />be determined by the Secretary. Except for the monthly charge by the Secretary, these items are called
<br />"Escrow Items" and [he sums paid to Lender are called "Escrow Funds."
<br />Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed
<br />the maximum amount that may be required for Borrower's escrow account under We Real Estate Setdement
<br />Procedures Act of 1974, 12 U.S.C. Section 2601 et seq. and implementing regulations, 24 CFR Part 3500,
<br />as they may be amended from time to time ("RESPA"), except that the cushion or reserve permitted by
<br />RESPA for unanticipated disbursements or disbursements before the Borrower's payments are available in
<br />the account may not be based on amounts due for the mortgage insurance premium.
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender
<br />shall account to Borrower for the excess funds as reyuired by RESPA. If the amounts of funds held by
<br />Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower
<br />and require Borrower to make up the shortage as permitted by RESPA.
<br />The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument.
<br />If Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credited with
<br />the balance remaining for all installment items (a), (b), and (c) and any mortgage insurance premium
<br />installment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly
<br />refund any excess funds to Borrower. Immediately prior to a foreclosure sale of the Properiy or its
<br />acquisition by Lender, Borrower's account shall be credited with any balance remaining for all installments
<br />for items (a), (b), and (c).
<br />3. Applieation of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />First, to the mor[gage insurance premium to be paid by Lender to the Secretary or to the monthly charge by
<br />the Secretary instead of the monthly mortgage insurance premium;
<br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other
<br />hazard insurance premiums, as required;
<br />Third, to interest due under the Note;
<br />Fourth, to amortization of the principal of the Note; and
<br />Fifth, to late charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insuranee. Borrower shall insure all improvements on the Property,
<br />whether now in e�cistence or subsequently erected, against any hazards, casualties, and contingencies,
<br />including fire, for which Lender requires insurance. This insurance shall be maintained in the amounts and
<br />for the periods that Lender requires. Borrower shall also insure all improvements on the Property, whether
<br />now in existence or subsequendy erected, against loss by floods to the extent required by the Secretary. All
<br />insurance shall be carried with companies approved by I,ender. 'I'he insurance policies and any renewals shall
<br />be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />FHA Mortgage WITH MERSNE
<br />VMP �
<br />Woltars Kluwar Financiel Sarvicea
<br />II I I I! IIII I I III I!IIII I I III I IIIII I II' I I I I I I I II I�II
<br />Revised 4/98 AmarWed 7/04
<br />VMP4NINEi 111061.00
<br />Papa 3 of 10
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