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<br /> 2. Monthly Payment of Taxes, Insuran�eand�3ther Charges.Barrawer s�aall include in each monthly
<br /> payment,tagether with the principal and interest as set forth in the Note and any late charges,a sum for
<br /> �a}taxes and special assessments le�ied or to be le�ied against the Proper�y,�b}leasehold paymeats or
<br /> grouad rents�n the Property,and�c}premiums for iasura.nce required under paragraph 4. In any year in
<br /> which the Lender must pay a mortgage insurance premium to the Secretary of Housing and Urban
<br /> Develo ment "Secr�ta " '
<br /> p � ry },or in any year�n�hich such pre�nium would have been r�quired if Len er stili
<br /> held the Security Instx�ument, each monthiy payment shall alsa inc�ude either; (i)a sum for#he annual
<br /> mortgage insurance premium to be paid by Lender ta the Secreta.ry,or(ii)a monthly Gharge instead of a
<br /> mortga�e insuran�e premium if this 5ecurity Instrument is held by the Secretary, in a reasonab�e amount to
<br /> be determined by the Secretary. Except for the month�y charge by the Secretary,these items are called
<br /> "Escrow Items"and the sums paid to Lender are ealled"Escrow Funds."
<br /> Lender may,at any time,collect and hold amounts for Escraw�tems in an aggregat�amount not�o exceed
<br /> the maximum amount that may be re�,uired for Bonower's escrow account under the Real Estate Settlement
<br /> Procedures Act of 1974, 12 U.S.C, Sectian 2601 et.�eq. and imp�ementing regulations, �2 C.F.R. Part
<br /> 1424,as they may he amend�d from time to time(�'RESPA"}, ex�ept that the cushion or reserve permitt�d
<br /> by RESPA for unanticipat�d tiisburserr�en#�s or disbursements�efore the Borrav�er's pa�ment�are a�ai��b�e in
<br /> the account may not�ae based on amounts due for the mortgage insurance prem�um.
<br /> If the arnounts h�ld by Lender for E�crow Items exceed the amaunts permitt�d to be held by RESPA,Lender
<br /> shal�accaunt t�Barro�ver for the excess funds as re�uired by RESPA. If the amaunts of funds held by
<br /> Lender at any time are not sufficYent ta pay the Escrow Items when due,L�nder may notify the Rorrower
<br /> and require Borrower to make up the shortage as permitted b�RESPA.
<br /> The Escrow Funds are pledged as ad�itional security for all sums secured�y this Security Instrument.
<br /> If Barrawer tenders to Le�der the fu�l paymen�of all such sums,Borrower's account sha11 be credited with
<br /> the bala�ce remaining far a11�nstallment items(a},(b},and�c}and any martga,�e in�urance premium
<br /> instal�ment that Lender has nat became obligated to pay to the Secretary,and I�ender shall promptly
<br /> refund any excess funds to Borrower. Immediately prior to a fore�iosure sale of the Pr�perty vr its
<br /> acquisition by Lender,Barfovver's accaunt shall�e cre�ited vvith any�alance remain�ng far all instaliment�
<br /> for items(a},(b�,and(c},
<br /> 3. Applicationof Payments.AIl payments under paragraphs � and 2 sha11 be applied by L�nder as fo�lows;
<br /> First, to the mortgage insurance premium ta be paid by Lender to the Secretary�r to the monthly charge by
<br /> the 5ecretary instead of the manthly mortgage insurance premium;
<br /> an to any taxes, special assessments, leasehold payments or ground rents, ar�d fire, flflod and other
<br /> hazard insurance premiums,as required;
<br /> T ir to interest due under the Note;
<br /> Faurth, ta amortization of the principal af the Note; and
<br /> Fi�h, ta late charges due under the l�ote.
<br /> 4. Fire,Flac�dand�ther Hazard Insurance.Borrower sha11 insure a11 improv�ments on the Praperty,
<br /> whether now in existence or subsequently erected,against any hazards, casualties,and c�ntingencies,
<br /> including fire, for which Lender requi.res insurance. This insurance shal�be mainta.ined in the amounts and
<br /> for the periods that Lendex re�u�res. Borrot�rer sha11 also insure all improvem�nts on the Property,whether
<br /> now in existence or subsequently erected,aga�nst loss by floods to the extent required by the Secreta.ry.All
<br /> insuranc�shall be carried wi��a compar�ies appro�ed by Lender. T�ae insuranc�palicies and any renewa�s shall
<br /> �e he�d b Lender aad shall inc�ude lass payable clauses in fa�or of,and in a form acce tabl�to, Lender,
<br /> FHA Mongage W1TH MERS-NE Revised 4196
<br /> VAAP� VMP4N�NE){1302}.p4
<br /> Wo�ters kt�uwer Financial Secvices qa�3��o�oglz az 33 �3z o3io Page 3 of 10
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