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<br /> • rl l. If the affiouata held by Lender for Fscrow Items eaceed the amounts permiued to be held by RESPA. L.ender �
<br /> "-` ahali aux�uut�o Barcawer for the efces:s fuadR�+renuired by RESAA. If the amounts of fuads held by Lender at any �
<br /> ;;;.�� time are not sufRcient to pay the Sscmw items when due, Lender may aotify the Banower aad require Earrower co l_
<br /> make up the shortage as petmitted by RBSPA.
<br /> • ;ti� The Bscrow Funds are pledged as addltional securlty for all swns seaured by thla Securlty Insuuraent. If _
<br /> ��. Borrower tendeca w L�ender the full pay�nent of aU such sums. Borcower's account shall be cmdited with the balance -
<br /> �-�.=�� remaining for aU instellment items(a),(b),and(c)aad any mortgage iasurance premivan installment that Lender has
<br /> ' not become obligated to pay to the Secretary, and Leader shaU pmmpdy refund any excess funds to Borrower.
<br /> . '�� Immediately pdor to a foreclosure sate of the Property or Its acqulsition by Leader, Borrower's stccouat shall tre
<br /> '` credited with any balance cemaining for all installments for items(a).(b),aad(c).
<br /> *�� 3. Applfsntion oi Puyments.All payments uader para�caphs 1 and 2 shaU be applied by L,ender as follows:
<br /> • :�°.};,l ig�sr ,to ttie mortgage insurance Premium w be paid by L,ender to the Secrecary or to the monthly charge by the
<br /> �ecretary instead of the montWy mortgage L�surance premium:
<br /> Secoad, to any taxes,special assessmeats.leasebold payments or grnund rents�and fire.flood and other hazard
<br /> - insurance prein(ums,as requit�ed; .
<br /> .� ir ,to interest due uader the Note;
<br /> ``''" , Poue4, to amorti�atian of tAe principal of the Note:and
<br /> ��' � due under the Note. =
<br /> ., i. i�f .to late charges
<br /> -::;��r"�. . 4. Ftre. �lood sind Other AeanM Insurance.Borrower shall insun aU unproveraenta on the Property,whether
<br /> � now in existence or subsequently ere�ted.againsc any hazards.casualdes�and continBencies. including ftre.for which
<br /> •�� �'. ,,;. Lender requira insurance. Thia insurance shall be maintetned in the amounts and for the perioda that Lender
<br /> _`.,.,:f:��: requlres.Borrower ehall also insure all improvements oa the Property, whethe�now in existence or subsequenfly
<br /> erected.againat loss by flooda to the extent required by the Secretary.All insurance shall be cariied with companies
<br />" ��-•� appmved by Lender.The insurance pol[cies and aay renewals ahaU be held by isnder aad shaU include loss payable
<br /> "�'�i��� clauses in favot of.aad ia a form acceptable to,Lender.
<br /> �.�:;��o In the eveat of loss,Bomower sbaU give Leader immediate notice by mail.Leader may make pmof of loss if not
<br /> �::—f�� made pmmpdy by Horrower.Each inaurance�company concerned is'hereby suthorizul a,��i,�ctbd us maLc�,�sst
<br />=�y�'� for such loss dlr�ecdY w Lender. instead of to B�arrower aad to �Lender joindy. All or any part of the insurance
<br /> _=°'�`'�i� proceeds may be applied by Leader.at its opdon,either(a)to the reductton of the iadebtedness undez the Nate and
<br />--Yc�:� this Securtry Instrument�tirst w any delinquent amownts applied in the order In para�raph 3,and then to prepayment
<br /> =�"�'�� llcadon of the proceeds w the
<br />�-;:�:t,� of prfacipal. or (b)to the reswration or repair of the damage�l PropertY. �3' 8PP
<br /> _=,.:;�,,._,��;� prIncipal shallnot ractend or postpoae the due date of the uwnthly payments which sc�e referred to in pazagcxph 2.or
<br /> _;.�,�-�� chauge the amount oY suc�payments.Any excess insurauce pmoeeds over aa amount required to pay ail outstanding
<br />`.r..,�.f� indebYedness wder the Note aad this Security Instrumcat shaU be paid to the ent[ty legally entifled thereto.
<br />�-;�,�;�_�� Ia the event of foreclosure of this Security Insmiment or other uensfer of dtle to the Progerty that extinguiahes
<br />°:°-a•�:,�� the indebtednesss, all rigLt, title aad �tterest of Bortower in aad to insurance policies in force ahall pas� w the
<br /> ----- purchaser.
<br /> 5.Qocuponq', PreservatEon.Msinteaance aad ProlecNon►ot the Property:Borrower's Loan Appliatttou;
<br /> --- I,ease6olds. B¢zmwer aball oxupy.establish,and use the Property as Borrower's priacipal residence whhia sixty
<br /> - __—= days aRer the ea�a�tton of this Secudry Inauuwent(or within sixty days of a later sale or sranafer of the Property)
<br /> - -_ - — aad shall con6aue to oocupy the Property as Borrower's principal residence for at leas:one year after tha date of
<br /> oocupaucy. vnless Leader deurmiaes that reguirement wUl cause uadue hardship for Borrower.ar ualess exunuating
<br /> - -'`�� circumstances exist which are heyond Borrower's control. Borrower shall notify Lan�er of any emenuaung
<br /> --_--'- �`� dnumstences.Bvrrower shali aot oommit waste or destmy.damage or substantially change the Pmperty or allow the
<br /> - property to deusiarate,reasoaable wear and tear excepted.LEnder may inspect the Property if the Property is vacant
<br /> --- or abandoned or the loan is In d�fautt. Lender may take reasonable action w protect mtd preserve such vacant or
<br /> ---"-.�� �4p�NE1�saoas.os veas a ot e tnroau•
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