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��14�751�
<br /> 2. Manth�y Payment of Taxes, Insurance and �th�r Charges. Barrawcr shali inClude in each monthly
<br /> paym�nt, t�g�ther vv itxi the principa�and interes�as s�t fortli in the Note and any late charges, a sum for
<br /> �a}taxes and special assessments l�vied or tn be levied against the Property, �b�leasehald payments ar
<br /> ground rents on the Property, and�c}premiums f�r insurance required under paragraph 4. �n any year in
<br /> which�he Lender musl pay a mortgag�insurance premium tc�the 5e�retai-y of Housin�and Urban
<br /> Development�"Secretary"}, or in an�year in which su�h pre�niuxn wvuld hav�h�en required if Lender stiil
<br /> held the Security Tnstrument, �ach month.ly pa�men�.s�all also include either: �i}a sum for the annual
<br /> mortgage insuranc�premiu�m.to be paid h�Lend�r ta t�ie 5�cretary, ar�ii�a manthly charge instead of a
<br /> martgage insuranc�premium if this Se�urity instrument�s held hy the Secretary, in a reasonable amount ta
<br /> h�determined by the Secretary. E��ept for thc montbly charge by the Secrctary, these itcros are�alled
<br /> "Es�row Items" anc�the sums paid to Lender are callcd "Escrow Funds."
<br /> Lender may, at any tun�, collect and hold amounts for Escrow Items in an aggregate amount nat�o exceed
<br /> the maxi.mum amaunt that�rria�he r�quired for Borr�wer's es�rQvv accaunt under the Real Estate 5et�ement
<br /> Pracedures Ac�nf 1974, 12 U.S.�. Secli��n 26�1 et seq. and implem�nting reguiations, 12 C.F.R. Part
<br /> �02�, as th�y may be amended from time to time�"RESPA"}, except that the cushian ar re�er�e permitted
<br /> �y RESPA for unan�icipated d�sbursements or r��sbursements befor�t,he Barrower's payments are a�ai�able�n
<br /> the accaunt m,a�r not be hased on a�mounts due for�he mortgage insuranc�premium.
<br /> If the amounts h�id b�Lender for Escrow Items exc�ed the amounts p�rmitted to be held by RESPA, Lender
<br /> sha11 accoun�to Borr�vver far th�ex�ess funds as r�quired by RESPA. If th�amounts of funds held by
<br /> I�ender at any�ime are not sufficient to pay the Es�row Items when due, Lender n�ay notif�th�Borrower
<br /> and require Borrawer to make up the shartage as permitted by RESPA.
<br /> Th�Es�row Funds ar�pledged a5 adc�i�i�na.l security for all sums�ecured hy t.hi�Security Instrument.
<br /> If Borrow�r tend�rs to���nder the full gaym�n�.of all such sums, Borraw�r's accaunt sha1�he credi�ed w�th
<br /> the balance rema�ning for a11 installment items�a}, �b}, and�c}and any mortgage insurance gremium
<br /> instal�ment that Lend�r has not l�ecome ahligated to pa�to th�Secretary, and Lender sha11 promptly�
<br /> refund any e��ess funds ta Barrower. Imm�diately prior�v a foreclosure sale of the Property or its
<br /> acquisition by L�ndcr, Borrawer's account sha�i be crcdited vvith any�alanee rern�aining for all installm�nts
<br /> for items�a}, (1�}, and{c}. �
<br /> 3. Application of Payments. All paym�nt�under para�raphs 1 and 2 shal�be applied by Lender as fol�aws:
<br /> �'irst, to t�i�mvrtgage i.nsurance premium tU be pa�c�b�Lend�r t� l:he Secr�tary or to �he m�nth�y charge by
<br /> �
<br /> �he Se�retary inst�ad af the mo�lthl.y m�rtgage insurance premium;
<br /> Second, �o any taxes, �pecial ass�ssments, leasehold paym�n�.s or ground rents, and fire, flood and other
<br /> hazard insurance premiu�as, as requir�d;
<br /> Third, ta interest due under the Nate;
<br /> Fourth, to amortizat�vn af t�h�principa�of th�Note;and
<br /> Fifth, tv lat�charges due under the Note.
<br /> 4. Fire, Fl�od and �]ther Haiard Insuran�e. �3arr�wer shall�nsure alI impr��ements on t,he Prop�r�y,
<br /> whe�her nvvv in exis�en�e or suhscquen�ly crected, against any hazards, �asualtics,and contingenGies,
<br /> including fire, for whi�h Lender require5 insuranc�. This insurance shall he mainta�ned in the amaunts and
<br /> fvr tlie p�riods that Lender r�quires. Borrovver shall a�so insure a�l impro�ements on the Prop�rty, vvhether
<br /> now in existenc�or suh��qu�ntly erected, against loss by floods to the extent r�quired by t�ie Secretary. A11
<br /> insurance sha11 be carried with companies apprv�ed hy L�nder. 'Irhe insurance pali�ies and any renewals shall
<br /> he held by Len�ier and shall include lass payable clauses in fa�or of, and in a form acceptable ta, Lender.
<br /> 4092714 4092714
<br /> FHA Mortgage WlTH MERS-NE Revised 419fi
<br /> VMP� VMP4NtNE��130��
<br /> Walters Kluwer FinanciaE Ser�ices Page 3 of 1�
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