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<br /> 2. Monthiy Payrnent �f Taxes, Insurance and �ther Charges. Borrower shall include in each month�y
<br /> paymen�,tog�ther with the principal and interest as set forth in the Note and any�ate charges, a sum for
<br /> �a�taxes and special assessmen�s le�i�d or t�be levied agaYnst the Property, (b}leasehold payments or
<br /> ground rents on the Property,and(c}premiums for insurance r�quired under paragraph 4. In any year in
<br /> which the Lender rnust pay a mortga�e insurance premium to the Secretary af Hausing and Urban
<br /> DeWelopment�"Secretary"}, or in any year in which such pr�mium w�uld hav�been required if Lender still
<br /> held the 5ecurity Instrument,each manthly payment sha11 also include either; (i}a sum for the annual
<br /> mQrtgage insurance premium to be paid by Lender to the Secr�tary, ar��i}a rnonthly charge instead of a
<br /> mortgage in�urance prernium if this Security Instrument is held by the Secretary, in a reasonable amaunt to
<br /> be det�rmined by th�Se�retary. Ex��pt for�he manthly charge by the 5e�retary,these items are called
<br /> "Escraw Items" and the sums paid to Lender are called "Escr�w Funds."
<br /> Lender may,at any time,collect and hold amounts for Escrow Items in an aggregate arnount not to e�ceed
<br /> the maximum amount that may be required far Borrower's escrovv accaunt under the Real Estate 5�ttlemen�
<br /> Pracedures AGt of 1974, 12 U.S.C. Section 2601 et seq. and implementing regulatians, 1�C.F.R. Part
<br /> 1fl24, as they may be arnended from time to time("RESPA"},except that the cushion or reser�e permitted
<br /> by RESPA for unanticipated disbursements�r disbursements bef�re the B arrvwer's payrnents are a�ailable in
<br /> the account may nvt be based on amounts due for the mortgage insurance premium.
<br /> If the amvunts held by Lender for Escrow Iterns exceed the amounts permitted to be held by RESPA,Lender
<br /> sha��account to Borror�er for the excess funds as required by RESPA. If the amounts of funds h�ld by
<br /> Lender at any time are not sufficient to pay�h�Escraw�tems when due, Lender may notify the Bvrrower
<br /> and require Borrower tv make up the shortage as permitted by RESPA.
<br /> The Escraw Funds are pledged as additional security for all surns secured by this S�curity Instrument.
<br /> If Borrower t�nders ta Lender the fuil payment of all such sum�,Borrower's account shall b�credited with
<br /> the balance remaining for all installment items(a}, �b}, and (c)and any martgage insurance pr�mium
<br /> installment that Lender has not become obligated to pay to th�Secretary, and Lender sha11 pramptly
<br /> refund any excess funds to Borrower. Irnmediatel�prior to a fvreclosure sale of the Property or its
<br /> a�quisitian by Lender, Barrower's account shall be credited with any balance remaining far all installments
<br /> far items �a}, (b), and(c}.
<br /> 3. Applicatian �f Payrnents. All payments under paragraphs I and Z shall b�applied by Lender as fallows:
<br /> First,to the mortgage insurance premium to be paid by Lender to the Secretary or ta the monthly charge by
<br /> th�Secretar�inst�ad of the monthly rnortgage insurance premium;
<br /> 5econd, to any taxes, special assessments,leasehold payments or ground rents, and fire,flvod and ather
<br /> hazard insurance premiums, as required;
<br /> Third,to interest due under the Note;
<br /> Fourth,ta amortizatian of the principal of the Note; and
<br /> Fifth,to late charges due und�r the Note.
<br /> 4. Fire, Fload and �ther Ha�ard Insurance, Borrower shali insure all impro�ements on the Property,
<br /> whether now in existence or subsequentiy erected,against any hazard�,casuaities,and�ontingencies,
<br /> including fir�, for which Lender requires insurance. This insuranc�sha11 he ma�ntained�n the amount�and
<br /> for the periods that Lender require5. Borr�wer sha�l also insure all improvements an the Property, whether
<br /> now in existence ar subsequently erected,against loss by floods to the extent required by the Secretary. All
<br /> insurance sha11 be carried with companies appro�ed by Lender. The insuran�e policies and any renewals shall
<br /> be held by Lender and shai�include loss payable clauses in fa�or vf, and in a form acceptable to,Lender.
<br /> 159735587 ��9�11498�
<br /> �HA Mortqage WITH MERS-N� Revised 4196
<br /> VMP� VMP4N�NPage 3 nf��
<br /> wolters Kluwer Financ�al Ser�ices
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