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<br /> 2. Monthly Payment of Taues, Insurance and Othe� Charges. Borrower shall indude in each monthly
<br /> payment, toge[her with the principal and interest as set forth in the Note and any lale charges, a sum for
<br /> (a) taues and special assessments levied or to be levied againsl lhe Proper[y, (b) leasehold payments or
<br /> ground rents on the Property, and (c) premiums for insurance required under paragraph 4. In any year in
<br /> which the Lender must pay a mor[gage insurance premium to the Secretary of Housing and Urban
<br /> Developmenl ("Secre[ary"), or in any year in which such premium would have been required if Lender still
<br />' held [he Security Instrument, each mouthly payment shall also include either: (i) a sum for the annual
<br /> matgage insurance premiwn to be paid by Le�der to the Secretary, or (ii) a monthly charge instead of a
<br /> mortgage insurance premium if [his Securlty Instmmen[ is held by the Secretary, in a reasona6le amount to
<br /> be determined by the Secretary. Except for the monthly charge by the Secretary, these i[ems aze called
<br /> "Escrow Items" and the sums paid[o Lender are called "Escrow Funds."
<br /> Lender may, at any time, collect and hold amounts For Escrow Items in an aggrega[e amount not to exceed
<br /> the maeimwn amount that may be required for Borrower's escrow account under the Real Estale Settlement
<br /> Procedures Ac[ of 1!�79, 12 iI.S.C. Section 2601 et seq. and implementing regulatlnns, 29 CFR Paet 3500,
<br /> as [hey may be amended from time to time ("RESPA"), except that the wshion or reserve permilted by
<br /> RESPA for unanticipated disbursements or disUursements before the Borrower's paymenls are available in
<br /> the accoun[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 Bw�rower for lhe excess funds as required by RESPA. If the amounts of funds held by
<br /> Lender al any time are no[ sufficient to pay [he 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 Utis Sewrity Instrument.
<br /> If Borrower tenders to Lender the full payment of all such sums, Borrower's accoanl shall be ccedited with
<br />; the balance remaining for all installmenl items (a), (b), and (c) and any mortgage insurance premium
<br /> installmen[ Iha[ Lender has not become obliga[ed [o pay [o the Secretary, and Lender shall promptly
<br /> refund any excess funds to Borrowec Immediately prior ro a foreclosure sale of [he Property or its
<br /> acquisition by Lender, Borrower's accoant shall be credited with any balance remaining for all installments
<br /> for items (a), (b), and (c).
<br /> 3. Application of P2yments. All payments under paragraphs 1 and 'L shall be applied by Lender as f'ollows:
<br /> First, ro the mortgage insurance premium to be paid by Lender lo the Secretary or to the monthly charge by
<br />� the Secretary instead of the monthly mortgage insurance premium;
<br /> Second, to any [arces, special assessments, leasehold paymenls or ground rents, and fire, Y7ood and other
<br /> hazard insurance premiums, as required;
<br /> Third, to interest due under the Note;
<br />' Fourth, to amortization of the principal of lhe Note; and
<br />' Fifth, to late charges due under lhe Note.
<br /> 4. Fre, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property,
<br />, whether now in e�zistence or subsequently erected, against any hazards, casuallies, and contingencies,
<br /> including fire, for which Lender requires insurance. This insurance shall be main[ained in the amounts and
<br /> for the periods that Lender requires. Borrower shall also insure all improvemenis 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 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 aceeptable to, Lender.
<br />' 001123168426 Citibank 3.2.61.12 V4
<br /> FHA Matgage WITH MERS-NE Revised�196
<br />� VMP(q' VMP4N(NE)(PI09].00
<br /> Wolters Kluwer Financial Scrvices Page 3 of t0
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