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201210800 rnortgage insuraucc premium to be paid by Lender to the Secretary,or(ii}a monthly charge inst.ead of a mortgage insurance premium if this Security Instnmicnt is hcld by the Secretan>in a rcasonable amount to be deterrr�ined by the Secretary. Escept Por the inonthly charge by the Secretary, these items are called "Esero�v Items" and the sums paid[o Lencier are ca.11ed"Escrow�Fimds." Lender rnay, at any iime,collect aud hold axuouuts for Escrow tteuis in an aggregate ainouut not to esceed the matimuni a.mount tliat�nay be required for F3orrower's escro�v�ccoirnt under the Real Estate Setttement Procedures Act of 1974, 12 U.S.C. Sectiou2601 etseq. and implementiugregulations, 24 CFR Part 3�U(), as they ma��be amended fronz t.imc to time ("RESPA"), except that the cushion ar reserve pemiitied by FZESPA for unanticipated disbursements or disbursements before the Borrower's payments are available in the account inay not be based on amowrts due for the morigage insurance premium. If tlic atnounLs held by-Lender for Escro�z-IteYns exceed the amounts pernutted to be held hS RESPA,Lender shall�ccount to Borroker for the e�:cess fiinds as reqnired by-RESPA. If the amounts of fiu�ds held by Lcndcr at auy time are not sufficient to pay the Escrow Items when due,Lender may notify ihe Borracs�er and require l3orro�ver to make up thc shortage as pennitted by RESPA. The Escro�v Funds are pledged as additional secirritt�for all sums secured by this Sccurity Instrument. If Borrower tenders to Lender the full payment of all such sums,Bon•ower's account s13a11 be crcdited�c•ith the balance remaining f'or all iivs�illment items(a), (b), and{c)and�ny mortgage insurance premiimi installment Lt�L L,ender has not becorue obligated to pay tv the Secretary,and Leudcr shall promplly n;Pund am excess funds to Bortowcr. Iinmediately prior Lo a Poreclosure sale of ihe Pmperty or its acquisition by Lender, Borrower"s account shall be credited�vith any balance remaining for ali installments for items(a), (b), and(c). 3. Applicationof Payments.All pa3�inents�mder paragraplis 1 and 2 shall be�pplied b}�Lender as foTio�vs: First, to thc mortgage iiisurance premium to be paid by Lcndcr to thc Secretarv or to the monthly clyarge b} the Secrek�ry-instead of the montlil}�mortg�ge insurance premium; Seconci, to any laxes, special assessrnenLs,leasehold pavme:nts ar ground renls, and rre, Ilood arid ot}ier t�arard insurance premiums.as required; Third, to interest due under Lhe Note; Fourth, to amortization of the principal of thc Note; and Fifth, to latc cliarges due uuder the Note. 4. Fire,Floodand Other Hazard Insurance.Borrower stu�ll insure all improvements on thc Propertv, cvhether no�a in esistence or subsequenYly erected, against any l��rards, casualues,and contingencies, including fire,for��hich Leiuler mquires insurance. This insurance stull be �naintained in the amounts aud £or thc periods that Lender requires. Borrower shall also insure all improveinents on the Property, �vheiher now in esistence or subsequently erected, aga.inst loss by floods to the extent required by the Secretan. All insurance slk�ll bc carried��ith companies appmved by� Lender. The insurance policics and any reuewais s1ti111 be held by Lender and shall include loss l�ayable clauscs in favor of,and in a.1'orn►acceptable to,Lender. in t}ie event of loss,Borrower shall give Lender inunediatc noticc by xnail. Lender xr�y make proof of loss il noY made promptly by Borrower. Eacli insurance coinpam conccrned is tiereby aulhoriLed and dii•ected to rnake paytnent for such loss direcfly ta Lender, instead of to Borrower and to Lender jointly. All or any pari of the itvsurance proceeds may be applied by Lender,at its option,either<a}to the reduction of the indebtedness under the Note and this Security Instrument,first to am� delinquent amounts applied iu the order in pax-agraph.3, and L}ien to prepayment of principal, or(b)to the resloration or repair of the damaged Propertv. Any application of the proceeds to the priucipal st�tll not extend or postpone the due date�f the FHA Qeed of Trust-NE q�g VMP CR� VMP4R(NE)(t'105).00 Wolters Kluwer Financial Services Pagr_3 c�f t0