|
2 01205460
<br />mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly chazge instead of a
<br />mortgage insurance premium if this Security Insmiment is held by the S�retary, in a reasonable amount to
<br />be determine� by the Secretary. Except for the monthly chazge by the Secretary, these items aze called
<br />"Escrow Items" and the sums paid to Lender aze 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 the Real Estate Settlement
<br />Procedures Act of 1974, 12 U.S.C. Section 2601 et seq. and implementing regularions, 24 CFR Part 3500,
<br />as they may be aznended from time to time ("RESPA"), except that the cushion or reserve permitted by
<br />RESPA for unanricipated disbursements or disbursements before the Bonower's payments aze 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 Bonower for the excess funds as required 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 Bonower
<br />and require Bonower to make up the shortage as pernutted by RESPA.
<br />Ttie Escrow Funds aze pledged as additional se,curity for all sums secured by this S�urity Instivment. If
<br />Borrower tenders to Lender the fu11 payment of all such sums, Bonower's account shall be creditefl with the
<br />balance remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment
<br />that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any exc�ss
<br />funds to Bonower. Immediately prior to a for�losure sale of the Property or its acquisition by Lender,
<br />Bonower's account shall be creditefl with any balance remaining for all installments for items (a), (b), and (c).
<br />3. Application of Payments. All payments 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 Se,cretary 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 requirefl;
<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 Insurance. Borrower shall insure all improvements on the Property,
<br />whether now in existence 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 subsequently er�tefl, against loss by floods to the extent required by the Secretary. All
<br />� inc��rance shall be carried with companies approved by Lender. The 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, L�nder.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if
<br />not made prompdy by Borrower. Each insurance company concemed is hereby authorized and directefl to
<br />make payment for such loss directly to Lender, instead of to Bonower and to Lender jointly. All or any part
<br />of the �n�,�,�nce procceds may be applied by Lender, at its oprion, either (a) to the reducrion of the
<br />indebtedness under the Note and this S�urity Instrument, first to any delinquent amounts applied in the
<br />order in paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the damaged
<br />Property. Any application of the proceeds to the principal shall not extend or postpone the due date of the
<br />FHA Deed af Trust-NE 4/98
<br />VMP � VMP4R(NE) (1109)
<br />WOlters Kluwer Financtal Services Page 3 of 10
<br />,��` 6 }:.' - �� v'
<br />
|