|
, •� �
<br /> `� ' RE•RECORDtE�
<br /> 99•1�584'7 99• 1C�5�9E�
<br /> If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA,
<br /> Lender shall account to Borrower for the excess funds as required by RESPA. If the amounts of funds held by
<br /> Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and
<br /> require Borrower to make up the shortage as permitted by RESPA.
<br /> The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument.If
<br /> Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the
<br /> balance remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment
<br /> that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess
<br /> funds to Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender,
<br /> Borrower's account shall be credited with any balance remaining for all installments for items (a), (b), and
<br /> (c).
<br /> 3. Application of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as
<br /> follows:
<br /> First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge
<br /> by the Secretary instead of the monthly mortgage insurance premium;
<br /> Second, 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.
<br /> 4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property,
<br /> whether now in existence or subsequently erected, against any hazards, casualties, and contingencies, including
<br /> fire, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the
<br /> periods that Lender requires. Borrower shall also insure all improvements on the Property, whether now in
<br /> existence or subsequently erected, against loss by floods to the extent required by the Secretary. All insurance
<br /> shall be carried with companies approved by Lender. The insurance policies and any renewals shall be held by
<br /> Lender and shall include loss payable clauses in favor of,and in a form acceptable to, Lender.
<br /> In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of
<br /> loss if not made promptly by Borrower. Each insurance company concerned is hereby authorized and directed
<br /> to make payment for such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any
<br /> part of the insurance proceeds may be applied by Lender, at its option, either (a) to the reduction of the
<br /> indebtedness under the Note and this Security Instrument,first to any delinquent amounts applied in the order
<br /> in paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the damaged
<br /> Property. Any application of the proceeds to the principal shall not extend or postpone the due date of the
<br /> monthly payments which are referred to in paragraph 2, or change the amount of such payments. Any excess
<br /> insurance proceeds over an amount required to pay all outstanding indebtedness under the Note and this
<br /> Security Instrument shall be paid to the entity legally entitled thereto.
<br /> In the event of foreclosure of this Security Instrument or other transfer of title to the Property that
<br /> extinguishes the indebtedness,all right,title and interest of Borrower in and to insurance policies in force shall
<br /> pass to the purchaser.
<br /> 5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br /> Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal
<br /> residence within sixty days after the execution of this Security Instrument(or within sixty days of a later sale or
<br /> transfer of the Property)and shall continue to occupy the Property as Borrower's principal residence for at least
<br /> one year after the date of occupancy, unless Lender determines that requirement will cause undue hardship for
<br /> Borrower, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall
<br /> notify Lender of any extenuating circumstances. Borrower shall not commit waste or destroy, damage or
<br /> substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted.
<br /> Lender may inspect the Property if the Property is vacant or abandoned or the loan is in default. Lender may
<br /> take reasonable action to protect and preserve such vacant or abandoned Property. Borrower shall also be in
<br /> default if Borrower, during the loan application process, gave materially false or inaccurate information or
<br /> statements to Lender (or failed to prov�de Lender with any material information) in connection with th a
<br /> �-4RINE) cesoa�.oi
<br /> � Page 3 of 8 If11ti8�S:
<br /> —V
<br /> . �. .. � . .� . . . '
<br />
|