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201500388 I
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<br /> 2. Monthly Payment of Taxes, InSUrdnCe 2r1d Othe�Che�ges. Borrower shall include in each monthly ',
<br /> payment, together with the principal and interest as set forth in the Note and any late charges, a sum for '
<br /> (a)taa�es and special assessments levied or to be levied against the Property, (b)leasehold payxnents ar
<br /> ground rents on the Property, and(c)premiums for insurance 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 /> Development("Secretary"), or in any year in which such premium would have been required if Lender still ''
<br /> held the Security Instrument, each monthly payment shall also include either: (i)a sum for the annual �
<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 Instxument 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 /> 'Bscrow Items" and the sums paid to Lender are called'Bscrow Funds."
<br /> Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed
<br /> the ma�imum 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 etseq. 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 ar�y 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 far all sums secured by this Security Instrument. '
<br /> If Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credited with
<br /> the balance remaining for all installment items (a), (b), and(c) and any mortgage insurance premium
<br /> installment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly
<br /> refund any excess funds to Borrower. Immediately prior to a foreclosure sale of the Property or its
<br /> acquisition by Lender, Borrower's account shall be credited with any balance remaining for all installments ,
<br /> for items (a), (b), and(c).
<br /> � 3. AppliCatlon of Pdyments. 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 /> Secon 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. I!�
<br /> 4. Fre, Flood end Othe1' HaZard InSu1'anCe. Borrower shall 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 /> 131258498 0089861157
<br /> FHA Mortgage WITH MERS-NE Revised 4/96
<br /> VMP� VMP4N(NE)(1302).00 ' �.
<br /> Wolters Kluwer Financial Services Page 3 of 10 ,
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