Laserfiche WebLink
201400795 <br />mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a <br />mortgage insurance premium if this Security Instrument is held by the Secretary, in a reasonable amount to <br />be determined by the Secretary. Except for the monthly charge by the Secretary, these items are called <br />"Escrow Items" and the sums paid to Lender are 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 regulations, 12 C.F.R. Part <br />1024, as they may be amended from time to time ( "RESPA "), except that the cushion or reserve permitted <br />by RESPA for unanticipated disbursements or disbursements before the Borrower' s payments are 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 Borrower 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 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 this Security Instrument. If <br />Borrower tenders to Lender the full payment of all such sums, Borrower' s account shall be credited 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 excess <br />funds to Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, <br />Borrower' s account shall be credited 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 Secretary 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 required; <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 chn1l 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 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 acceptable to, Lender. <br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if <br />not made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to <br />make payment for such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part <br />of the insurance proceeds may be applied by Lender, at its option, either (a) to the reduction of the <br />indebtedness under the Note and this Security 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 />2200434877 D V4RNE <br />FHA Deed of Trust -NE 4/88 <br />VMP (ql VMP4R(NE) (1302( <br />Wolters Kluwer Financial Services Page 3 of 10 <br />