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200203402
<br />Lender may, at any time, collect and hold amounts for Esemw Items in an aggregate amount not to exceed the maximum amount that may
<br />be acquired fm Borrower's escrow account under the Real F,sume Sedtdement Procedures Act of 1974, 12 L -SO § mol a said, and
<br />implemcni hn� •egulations, 24 CPR Pact 35WL as tiny may be amended nom time to time ("RESP.1 L except that be cushion or reserve
<br />permitted by RESPA for unanticipated duburstrom n or disbm senaents before the Bo revel's payrnenn are available in the account may not be
<br />based on amounts due for the mortgage insurance premium.
<br />If the amounts held by Lender Or Escrow Rants exceed Ile amounts permated to be held by RESPA, Lender shell deal vv r in the excess
<br />funds as required by RESPA. ]file amounts of funds held by Lender at any time are not sufficient to pay the Escrow Items when chic, Lender
<br />may notify the Borrower and require Bur tower to make up the shortage or deficiency as permitted by RESPA -
<br />'fhe Escrow Funds are pledged as additional security for Al sums secured by this Security Instrument. I f Borrower tenders to Lower the
<br />full payment of all such sums, Borrower's account shall be credited with the balance remaining for all installment items (a), (b), and (c) and any
<br />mmt;age insuance premium installment that Lender has not become obligated to pay to the Sccrctary, am4 Lcndcr All promptly refund any
<br />excess funds to Borrower- Immec lately prior to a toecloane sale of the Property or its acquisition by Lender, Borower's account shall be
<br />credited with may balance remaining for all installments for items (a), Or and (c)-
<br />3. Application of Paymen Is. .AII payments under paragraphs I and 2shaII be app Iled by Lender as loIIocas.
<br />First to the mortgage msurame premium to he paid by Lender to the Secretary or to the monthly charge by the Secretary ustead of the
<br />monthly mortgage insurance premium;
<br />Second, to any taxes, special asawricrus. leasehold payment or ground rents, and fire, flood and other hazard insurance premiums, as
<br />required,
<br />'Third, to interest (Inc under the Note;
<br />Fourth, to amortization of the principal of the Note;
<br />Fifth, to We charges due under to Note.
<br />4. Fire, Flood and Other Tlazard Insurance. Borrower eh H insure all improvements on the Property, whether noyv in evidence or
<br />subsequently elected, agarnat any mZURkI, casualties, and contingencies, including Dire, for which Lender require, insurance. 1hn insurance
<br />had be maintained in the amounts and for the periods that Lender require,. Borrower shall also insure all "provemcnts on the Property,
<br />whether now in existence or subsequently emend, against loss by floods to the cannot required by the Seuctay. All insurance shall be cased
<br />wuh compares approved by Lender. The insurance policies and any renewals shalt be held by Lcndcr mW shall include loss pay tl le dams s itn
<br />favor at, and in a form acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender imma arc notice by mail. Larder may make proof of loss if not made promptlyy by
<br />Bor tower. Each insurance company concerned is hereby authorized and directed to make payment for such loss directly to Lender, instead of to
<br />Borrower and to Lenderjointly. All or any part of the insurance proceeds may be applied by Lender, at its oprion, either (a) to Be reduction of
<br />the indebtedness under the Now and this Security Instrument, first to any delinquent amounts applied in the order in Paragraph 3, and then to
<br />prepayment of principal, or (b) to the restoration or repair of the damaged Properfy..Any. application of the proceeds to the prinerpal shall not
<br />extend or postpone the Inc date of the monthly payments which are referral to in Paragraph 2, m change the amount of such payments. Any
<br />excess insurance poceedsoycran amount reWmal m pay all outstanding indebtedness umis the You and this Secrally Instrument small be paid
<br />M the Linn" legally entitled thcnow
<br />In the event of foreclosure of this Security Instrument or other transfer oftide to the Properly tint extinguishes the indebtcdnc: ,all light,
<br />title and interest of Borrovvw in and to insurance policies in force shall pass to the purchaser_
<br />5. Oceupsusy, Preservation, Alaintenance and Proteetima of the Property; Borrower's Loan Application; Leaseholds. Borrower
<br />Shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of this Securay Ins rumens
<br />and shall continue to occupy the Property as Borrower's principal residence for at lust one vein after the date of occupancy, unless the Secretary
<br />determines this requirement will cause undue hardship for BorIrI or unless c,etenuanng circumstances cmill vv-htch are beyond Borrower's
<br />control- Burrower shall notify Lenders of any extenumip eircum [antes. Borrower shall rut commit waste or destroy. damage or substantially
<br />„hinge the Property or allow+ the Property to deteriorate, reasonable wear and rear excgwd. Lender may inspect the Property ifahc Property is
<br />vacant or abandoned m the loan is in default. Lender may take reasonable action ne protect and prewrce such vacant or abandoned Property.
<br />Borrower shall also be in default if Borrower, during the loan application process, gave materially false or mucurne r Ornmumr of statements
<br />M Lender (or failed to prude Lender with any material information) is collection with the loan c% doomd by the Vote, including, but not
<br />limited to, representations concerning Borrower's occupancy of the Property as a pnncpal residence If this Security Insll. m"a is on it
<br />leasehold, Burrower shall comply with [he provisions of the lease. If Borrower acquires the tnlu to the Property, the Vnehold and to title shall
<br />not be merged unless Lender agrees to the merger m writing.
<br />6. Cmtdentrunion. "The proceeds of any, award or claim for damages. direct or consequential, in connection with any cur demotion or
<br />other taking of any part of the Propuly, or fur conranance in place of condenmation, ac hereby assigned and AuH be paid to Lcndcr to the
<br />extent of the full amount of the indebtedness that remains unpaid under the Note and this Secut Hy RAMU TIML Lender shall apply such procceds
<br />to the reduction of the and occiness under the Note and to Security Insmument, not to any delinquent amounts applied in Be order ifen"ded
<br />in Paragraph 3, and then to prepayment of principal. Any application of the proceeds to the principal shall not extend or postpmre be due date
<br />of the monthly payments, which are inferred to in Paragraph 2, or change the amount of such paymems Any excess proceeds over an amount
<br />required to pay all outstanding indebtedness under the Note and this Security Instrumenr shall be paid to Be entity legally entitled thereto.
<br />I Charges to Borrower and Protection of Lender's Wo"s is the Property. Borrower shall pay all governmental or munwgxLl
<br />char acs, fines and impositions that are no[ included in Paragraph 3. Borrower shall pay these obligations on time dncctdy to Inc entry which is
<br />owed the payment. if failure to pay would adversely flAct Leoier's imerest in the Property, upon Lender's request Borrower shelf promptly
<br />Hanish to Lender receipts evidencing these payments.
<br />If Borrowet fails to make theca payments m Be payments equircd by Paragraph 2, or fails to perform any other cmenunts and
<br />agrements contained in this Security Instrument, or there is a VgA proceeding that may v,nifwandy affect Lenders r.ghas in the Property
<br />(such as a proceeding in bous,upley, for condemnation or to enforce laws or regufaimm then Lender may do tad pay whatever N necessary to
<br />pr owd the value of the Property and Lind is rights in the Property, including payment of taxes, hazard insurance and other items mentioned in
<br />Paragraph 2.
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<br />IIUI t l (K fit) (, i; x23
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