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`��i�0596'�
<br />LOAH #� BQ112096053
<br />'rf Lender still held the Security Instrument, each monthly payment shall also include either: (i) a sum tor
<br />the annual mortgage insurance premium to be paid by Lenderto the Secretary, or (fi) a monthly charge
<br />instead of a mortgage insurance premium 'rf this Security Instrument is held by the Secretary, in a
<br />reasonable amountto be determined bythe Secretary. Exceptfor the monthly charge bythe Secretary,
<br />these items are called "Escrow Items° and the sums paid to Lender are called "Escrow Funds.°
<br />Lender may, at any time, collect snd hold amounts for Escrow Items in an aggregate amount not to
<br />exceed the ma�dmum amount ihat may be required for Borrower's escrow account under the Real Estate
<br />Settlement Procedures Act of 1974,12 U.S.C. Section 2601 et seq. and implementing regulations, 24 CFR
<br />Part 3500, as ihey mey be amended from time to time {"RESPA"}, except �at the cushion or reserve
<br />perm'ittted by RESPA for unanticipated disbursements or disbursements before the Borrower's payments
<br />are available in the account may not be based on amounts due for the mortgage insurance premium.
<br />Ifthe amounts held by Lenderfor Escrow Items exceed the amounts permitted to be held by RESPA,
<br />Lender shall account to Borrower for the excess funds as required by RESPA. If the amounts of funds
<br />held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may notify the
<br />Borrower and require Borrower to make up the shortage as permitted by RESPA.
<br />The Escrow Funds are pledgecJ as addi�onal securityfor all sums secured by this Security Instrument
<br />tf Borrower tenders to Lenderthefull paymentof all such sums, Borrower's account shall be credited writh the
<br />balance remainingforall installmentitems (a), (b), and (c) and anymortgage insurance premium installment
<br />that Lender has not become obligated to pay to the Secretary, and Lender shall prompUy reiund any excess
<br />tunds to Borrower. Immediately prior to a foreclosure sale af ihe Property or ffs acquisition by Lender,
<br />Borrower's accountshap becreditedwith anybalance remaining for all instaUmentsfor items (a), (b), and (c}.
<br />3. AppllcaUon of Peyments. All payments under paragrephs 1 and 2 shall be applied by Lender
<br />as follows:
<br />� to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly
<br />charge by the Secretary instead of the monthly mortgage insurance premium;
<br />Second, to any taxes, specisl assessments, leasehold payments or ground rents, and fire, flood and
<br />other hazard insurance premiums, as required;
<br />Third, to interest due under the Note;
<br />Fourth. to amortiza6on of the principal of the Note; and
<br />Frfth, to late charges due under the Note.
<br />4. Flre, Flood arM Ofher Hezsrd Insurarn�. Borrowershall insure sll improvemenis on the Property,
<br />whether now in e�astence 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 />forthe periods that Lender requires. Borrowershap a�o insure all improvements on the Property, whether now
<br />in e�dstence or subsequently erected, against loss by floods to the extent required by the Secretary. All
<br />insuranceshaUbe carriedwilh companies approved by Lender. The insuran ce policies and any renewels shall
<br />be held by Lender and shall include I�s payable clauses in fevor of, and in aform acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of
<br />loss if not made promptly by BoROwer. Each insurance company concemed is hereby aufhorized and
<br />directed to make paymentfor such loss directiy to Lender, instead of to Borrower and to Lender joinUy. All
<br />or any part of the insurance proceeds may be applied by Lender, at its option, either (a) to the reduc�on
<br />of the indebtedness under the Note and this Security Instrument, first to any delinquent amounts applied
<br />in the order in paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the
<br />damaged Property. Any application of the proceeds to the principal shall not extend or posipone the due
<br />dateofthemonthly paymentswhich arereferred toin paragraph 2, orchangetheamountofsuch payments.
<br />My excess insurance proceeds over an amount required to pay all outstanding indebtedness under the
<br />Note and this Security instrument shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other transfer of tiUe to the Property that
<br />extinguishes the indebtedness, all right, title snd interest of Borrower in and to insurance policies in force
<br />shall pass to the purchaser.
<br />5. Occupency, Preservatlon, Melntenance and ProtecUon of the Property; Borrower's Loan
<br />Appllcatlon; Leaseholds. Borrower shall occupy, establish, and use the Properly as Borrower's
<br />principal residencewithin sixty days afterthe execution ofthis Security Instrument {orwithin sixty days
<br />of a Iater sale or transfer of the Property) and shall continue to occupy the Property as Borrower's
<br />principal residence for at least one year after the date of occupancy, unless Lender determines that
<br />requirementwill cause undue hardship for Borrower, or unless extenuating circumstances existwhich
<br />are beyond BoROwer's control. Bonower shall notify Lender of any extenuating circumstances.
<br />Borrower shall not commitwaste or destroy, damage or substantially change the Property or allow the
<br />Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property 'rf the
<br />Property is vacant or abandoned or the loan is in default. Lender may take reasonable sction to protect
<br />and preserve such vacant or abandoned Property. Borrower shall also be in default'rf Borrower, during
<br />the losn application process, gave materially false or inaccurate information or statements to Lender (or
<br />failed to provide Lender with any material information) in connection with the loan evidenced by the
<br />Note, including, but not limited to, representaUons conceming Borrower's occupancy of the Property
<br />as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with the
<br />FFU► Nebreske Deed of Truet-4/98 Iaitials t �_`
<br />Online Documer�ts, Inc. Pege 3 Of 7 NEEFHADE 1108
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