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<br /> If the amounta held by i.eader for Escrow Items exceed thc aiuountrr permi�ted to be hcld by RESPA,Lander —
<br /> shall account to Bonowcr for the excess fuads as required by 1tESPA. If the araounts of funds held by I.ender at aay
<br /> time are not sufficlent to pay the Escrow Items when due, Lender may notify the Borcower and require Borrower to
<br /> make up ihe shortage as permitted by RESPA.
<br /> The Esctow Fuads are pledgcd as additional securlty for�ll sums secured bY th�s Secudn' �gt�mc. lf
<br /> Bormwer tenders to Lender the full payment of all such sums,Buaower's account ishall be credital with the balance
<br /> temaining for all installment items(a), (b).aad(c)and any mortgage iasurance premium installmeat that L.ender has
<br /> not become obligated to pay to the Secretary, and I.ender shall pmmptly refund any excess funds to Borrawer.
<br /> Immedlately prlor to a foreclosura sale of the Property or its acqulsltian by L.cnder, 1Borrower's aceount sha11 be
<br /> credtted vv9th any balance remaiuing f�r aU installments for items(a),(b),and(c)•
<br /> 3.AppBcatioa ot Paymeats.All payments under paragrdphs 1 az►d 2 shall be applied by L.ender as foAows:
<br /> g�.to the mortgage insurance premium to be paid by Lender ro the Secretary or to the montl�ly chuge by the
<br /> Socrctary instead of the rnonthly nartgage inaurance pnmtum: nts or uad nnts,aad fire,flood and other hazard
<br /> ��,to any ta�ces.sPecial ass�ssmeau,leasehold payme 8�
<br /> tnsurance pnmiums.as reQuired:
<br /> �,to intenst due under the Note;
<br /> F�,ta amortizadon of the pr�ncipal of the Note;and
<br /> Fj$b„to late chazges due uuder tlie Note.
<br /> 4.�,yK,��yu�d p�6ar Hazard Insurwnce.Borrower shall Insure all Lnprovements oa the Propercy,whether
<br /> now in e�istence or subsequendy erocted,against any hazards.casualties.and contingencia,including fire.for whlch
<br /> Ltndar s�qsilr►s �L*�!nce. This insurance ehall be aaaintained in the araounta and for the periods thsu Lender
<br /> ioqnires, Borrower sdall also insure all improveaxnts on the Pcoperty, whxther now in eaistci,�or sutsscqutusi,
<br /> erected.ageinst lou by floods to the eatent requind by the Secretary. All lnsurance shall be c�[ed with comp�nlas
<br /> approval by Lender.The insurance poiicia and any npewala shall be held by Lender aad shaU iaclude loss paynble
<br /> clauses in favor of.and in a form accepteble to.Lender.
<br /> Ia tbe event of loss.Borrower sh�ll give Lender immedlate notice by mall.I.andcr maY n�C�P�f of loas if not
<br /> m�de promptty by Borrower.B�ch insuratk�e comp�ny concemed is henby authorized�nd dirxted of�insuruice
<br /> for such loss directly to Leader. instesd of to Borcower �nd to Lender joindy. All or any p�rt
<br /> g�,.,wt,s.y t,,•n„�,t;ect by i en�r, at ita�ptinn,either(n)to thP rtduCdOn of the fndeb�t 3����pnp�t�nt
<br /> th;a Securlty Instnunent.first to any delinquent amounts applied in the orckr in par�graP
<br /> of princip�l. or (b) to the restoradon or repair of the damaged ProPertS'• AnY �PP1i�Qn of the proceods w the
<br /> principal shall not exteAd or postpone the due date of thc monthly prymeaW wh�ch ue nferred to ia pua8r�ph 2��Y
<br /> cb�nge tbe unount of such p�yments.Any eaceas insurance procxeds over aa emouat required to p�y All outstaadiag
<br /> indebtedness under the Note and this Security Iasmiment shall be p�id to the eattty legally entitled th��exdn ihea
<br /> In the event of fareclosure of this Securlty Instnunent or other transfer of title to the Ptopccty 8�
<br /> the indebtedaess. all dght. title and interest of Bormwer in aad to insurauce policiw in force shdl p�+s te the
<br /> purchaser.
<br /> S. Occupancy.PKSe�rvRHon.Mninteoance And ProtecNon o[the Propertyi B�wa'e Laa Applicatbn;
<br /> I,eaaehold�. Borrower shell occupy,establish,and use the PropertY as Borrower'e princlpal resida►a within sixty
<br /> days aRer the exacutton of this Security Instrument (or within sixty days of a later sale or uanafer of the Pcoperty)
<br /> and shall contlaue to occupy the Property a+Borrower's princlpal residenoe for at last oac year after tLe date of
<br /> occupu�cy,unless l.eader determtnes that requinment wlll cause undue hardship for Borrower,or nnless eztenuuin8
<br /> c;rcumstoaces eaist which are beyond Bomower's conuol. Borrower shaU notify Lender of any extenwiting
<br /> circumstu�ces.Borrower shall not commit waste or desmoy,dama8e or substantially change tt►e Propercy or allow the
<br /> property to detedorate.reasonable wear an.d tear excxpted.L�ender may inspoct the Property if the Froperty is v�caat
<br /> or ab�ndoned or the loan ts ia default. Lender may take reasonable action to pmtect and pnserve such vac�at or
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