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<br /> mortgage insurance premium to�e paid by Len�er to the Secretary, ar(ii�a monthly charge instead of a
<br /> mortgage�nsurance premium if this Security Instrument is held l�y the Secretary, in a reasonab�e amount tv
<br /> be determ�ned by the Secretary. Except far the monthly cha.rge by the Secretary, these items are called
<br /> "Escrow�tems" and the sums paid ta Lender are called"Escrovcr Funds."
<br /> Lender may, at any time, �ollect and ho�d amaunts fQr Escrow�tems in an aggregate amount not to exceed
<br /> the ma.ximum amaunt that may be required fvr Borrower's escraw account under the Rea1 Esta�e Settlement
<br /> Procedures Act of�974, 1�U.S.�. Secti�n 2��i et seq. and implemen�ing regulations, 1� �.F.R. Part
<br /> 1U24, as they may be amended from t�me to time �"RESPA"}, exc�pt tha.t the cushi�n or rese�ve permitted
<br /> by RESPA for unant�ci�ated disbursements or disbursements bef�re the Borr+ower's payments are a�ailab�e in
<br /> the account may not be based�n amaunts due for the mortgage insurance pre�nium.
<br /> if the amounts held by Lender fvr Escrow Items exceed the amounts permitted�o�e held by RESPA,Lender
<br /> sha11 accoun�to Borr��er for the excess funds as required by RESPA. If the amounts�f funds held by
<br /> Lender at any time are not sufficien�to pay�he Escrow Items when due,Lend�r may not�f�the Borrvwer
<br /> and require Borrower to make up the shortage as permitted by RESPA.
<br /> The Escrow Funds are pledged as ad�.itional security for a11 s�xms secured by this Security�nstrument. �f
<br /> Borro�ver ten�ers�a Lender the fu11 paymen�af a11 such sums,Borrvwer's account sha11 be credited wi�h the
<br /> balance remaining for a11 installm�nt items�a}, �b}, and�c}and any martgage Ynsura.nce prem�um instaliment
<br /> tha.t Lender has no�become obligated to pay to the Secretary,and Lender sha�l promptly refund any excess
<br /> funds to Borrower. �mmediately prior to a foreciosure sale vf the Prop�rty �r i�s acquisition by Lender,
<br /> Borrower's account sha11 be credited w�th any ba�an�e rema.ining for a11 instal�ments for items(a), �b}, and�c}.
<br /> 3. Appli�ation�f Payments,A11 payments under paragraphs 1 and� sha11 b�app�i�d by L�n�ier as follows:
<br /> First, to the mortgage insurance prem�um to�e paid by Lender�a the Secretaxy or to the mnnth�y�harge by
<br /> the Secretary instead of the monthly mor�gage insurance premium;
<br /> Secon to any taxes, special assessments,leaseho�d payments or ground rents, and fire, flood and ather
<br /> ha�axd insurance prerniums, as required;
<br /> Third, to interest due under the Note;
<br /> Fourth, to amartization of the principa�of the Note; and
<br /> Fifth, to late charges due und�r the Note.
<br /> 4. Fire,Floodand�ther Hazard Insuranc�.Barrower sha11 insure a11 impra�ements on the Property,
<br /> whether now in existence ar subsequently erec�ed, against any hazar�is, casua�ties,and con�ing�ncies,
<br /> including f�re,for which Lender requires insurance. This insurance sha1�be maintained in the amoun�s and
<br /> far the perio�ls that Lender requires. Borm�ver shall also insure a11 improvemen�s on the Property,whether
<br /> now in existence or subsequently erected, against loss b�floods t�the exten�required�y the Secre�ary. A1�
<br /> insurance sha11 be carried with companies approved b�Lender. The �nsurpance p�lic�es and any renewa�s sha�l
<br /> be held by Lender and sha11 include loss payable clauses in favor of, and in a f�rm acceptable ta,Lender.
<br /> In the even�of��ss,Borra�er shall gi�e Lender immediate not�ce by mai1. Lender may ma.ke proof of lvss if
<br /> not made promptly by Borrvwer. Each insura.nce company concerned is hereby authorized and direc�ed to
<br /> make payment for such loss directly to Lend�r, instead of t�Borrower and ta Lender jaintly. All or any part
<br /> of�he insura.nce proceeds may be applied by Lender, at��s option, either�a}to the reduction of the
<br /> indebtedness under th�Nate and this Security Instrument, first to any delinquent amounts applied in�h�
<br /> order in para.graph 3, and then ta prepayment of principal, or�b}to the restarati�n or repair of the�iamaged
<br /> Property. Any application of the praceeds to the principal shall not e�tend or�ostpone the due da�e af the
<br /> FHA Deed af Tr�st-NE 4196
<br /> VMP� VMP4R�NEj{1302).00
<br /> Woiters Kluwer Financial Services Page 3 af 1d
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