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20]203502
<br />mortgage iasuranec premium to he paid by Lender to the Secretary, or (ii) a monthly charge instead of a
<br />mortgage insurance premium if this Security Instrument is held by the Secrelarv, 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 the sums paid to Lender are called "Escrow Funds."
<br />Lender may, al any lime, collect and hold announts for Escrow hems in an aggregate amount not to exceed
<br />the maximum amount that may be required for Borrower s escrow account under the Real Estate Settlement
<br />Procedures Act of 1974, 12 L.S.C. Seclioa2601 el eey. and implementing regulations, 24 CFR Part 3500,
<br />Ih— _ he amended "'n, time ,, time ("It I�Sii exi:ent that the cushion or reactive actuated by
<br />RESPA lot wuudnciputul dmbmncmcrds or rh burscaowas Lehr, the Borrower's payments are available in
<br />the account rosy not he based on annnunis due for the mortgage insurance premium.
<br />If the amounts held by Lendcr If, Fscrow Items exceed the amounts permitted to be held by RFSPA, Lender
<br />shall account to Borrower for the excess funds as required by RESPA_ If fie amounts of funds held by
<br />Lcnrler al any time arc not sufficient to pay the Escrow Items when due, I tide may notify the Borrower
<br />and require Frorrmver to make on Ibe srcrinti as, permitted by RESP.A.
<br />ThcEserow Funds are pledged as additional security for all sums six arud by this Security Instrument_ If
<br />Borrower tenders to Lend r the fidl payment of all such rums, Borrower's account shall be credited with the
<br />balanccremairdng for all installment items (a), (b), and (c) and any mortgage insurnnee premium installment
<br />that Lender has not beeomcobligatcd to pay to the Sccrelary, and Lender shall promptly refund any excess
<br />funds to Borrower. Immediately prior to a foreclosure sale ofthe Properly or its acquisition by Lender,
<br />Burniwer'., account shall be creditedwith any balanceremaining for all inslallrnems for items (a), (b), and (c)_
<br />3. Applieationof Payments.All payments under paragraphs 1 and 2 shall be applied by t.cndcr as follows:
<br />PF�t to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by
<br />[be Secretary instead ofthe monthly mortgage insurance premium;
<br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, Brod and other
<br />hazard insurance premiums, as required;
<br />Third, to interest due trader the Note;
<br />Fourth to arnom.tion of the principal of ilm Note, and
<br />Fish to late charges due under the Non:
<br />4. Fire, Floodand Other Hazard Insurance.Bumrwer shall insure allimprovements on the Property,
<br />whether now in cxistenco or subsequently .:rascal, against anv hazards, casualties, and contiageneic,,,
<br />including fine, for which Lender require; 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 />new it, cxisleace or wbsequcnlly erected, against loss by lluods to the cxtcnt required by the Secretary_ All
<br />insurance shall be carried with companies approved by tender_ The insurance policies and any renewals shall
<br />be held by Lender and shall include lo, payable clauses in favor of, and in a form acceptable. in, T.ender.
<br />In the event of Inss. Butrowct 1,1,0 give Lender immediate notice by mail. Lender may make proof of fins if
<br />not made promptly by BoffOWer. Each insurance company concerned is hereby authorized and dirceted to
<br />make payment for such loss directly on Lender, instead of to Borrower and to Lender jointly. All or any part
<br />of the unururi prumrds may be applied by Lender, at its option, either (a) ht the reduction of the
<br />indebtedness under the Nate and thic Security Instmment, first to any delinquent amounts applied in the
<br />order in paragraph 3, and then to pmpuvmwn of principal, or (b) to the restoration or repair of the damaged
<br />P.nnP.r.. An,,, ar.,.GreN,.n .,f rhe.. e..-�.i. to r6- principal shall n e.r.nA or in.a Renu din dn, dirt, of the
<br />FHA neatl v T—toL a'Ra
<br />VMP H VMP41RINEI(1106)00
<br />'Z'— K1— Fl,a tcl.I s--, Psge 30 10
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