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<br />If the amounts held by Lender for Fscnrw hems exceed the amounts permitted to be held by RESPA, Lender shall
<br />account to Borrower for the excess funds as required by RESPA. If the amounts of funds held by Lender at any time
<br />are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to make up
<br />the shortage as permitted by RESPA.
<br />The Escrow Funds are pledged m additu ml security for all sums secured by this Security Instrument. If Borrower
<br />tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance remaining for
<br />all areud Bent items (a), (b), and (c) and any mortgage insurance premium installment that Lender has not become
<br />obligated In pay to the Secretary, and fender shall promptly refund any excess funds to Borrower. Immediately prior to
<br />a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be credited with any balance
<br />remaining for all installments for items (a), (b), and (c).
<br />3. Application of Payments. All payments under paragraphs I and 2 shall be applied by Lender as follows:
<br />First, to the mortgage insurm¢e premium to be paid by Leader to the Secretary or to the monthly charge. by the
<br />Secretary instead of the monthly mortgage insurance premium;
<br />Second, to any taxes, special assessments, Icasehold payments or ground rents, and tire, flood and other hazard
<br />insurance premiums, as required;
<br />Third, to interest due under the Now;
<br />Fourth, to amortization of the principal of the Note; and
<br />Fifth, to late charges due tinder the Note.
<br />6. Fire, Flood and Other Ilazard Insurance. Borrower shall insure all improvements on die Property, whether
<br />now in existence or subsequently misted, against any hazards, casualties, and conirtgencies, including fire, for which
<br />lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires.
<br />Borrower shall also insure all improvements on the Property, whether now in existence or subsequently erected, against
<br />loss by floods to the extent required by the Secretary. All insurance shall be carried with companies approved by Lender.
<br />The insurance policies and any renewals shall be held by lender and shall include loss payable clauses in favor of, and
<br />in a form acceptable to, Lender.
<br />In the event of loss, Borrower shall give I ender immediate notice by mail. Lender may make. proof of loss if not
<br />made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for
<br />such loss dircedy to Lender, instead of to Borrower and to fender jointly. All or any part of the inmearKs proceeds may
<br />be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Now and this Security
<br />Instrument, fast to any delinquent amounts applied in the order in paragraph 3, and diva to prepayment of principal, or
<br />(b) to the restoration or repair of the damaged Property. Any application of the proceeds to the principal shall not extend
<br />or postpone the duo date of the monthly payments which are referred to in paragraph 2, or change the amount of such
<br />payments. Any excess insurance proceeds over an amount requirul to pay all outstanding indebtedness under the Note
<br />mid this Security Instrument shall be paid m the entity legally entitled Wereto.
<br />In the event of foreclosure of this Security Instrument or other Vander of tde w dire Finnerty that extinguishes the
<br />indebtedness, all right, title and interest of Borrower in and m insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br />Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days
<br />after the execution of this Securvy Instrument (or within sixty days of a later salee or transfer of the Property) and shall
<br />comirme to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy,
<br />unless Leader determines that requirement will cause undue hardship for Borrower, air unless extenuating circumstmecs
<br />exist which are beyond Borrower's control. Borrower shall notify Lender of any exlermating circumstances. Borrower
<br />shall not commit waste or destroy, damage or substantially change the Property or allow the Property to deteriorate,
<br />reasonable wear and tear excepted. Lender may inspect the Property if the Property is vacant or abandoned or the loan is
<br />in default. Lender may take reasonable action to protect and preserve such vacmt or abandoned Property.
<br />n�o/),R.�. 112 601 1,rr, I :nalti 119x93 LOAN g: s0111V919i
<br />(M- 46(NE) tsecal.m urgevof o mumo-�
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