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<br />200907258
<br />If the atnvunts held by .l.ettder for escrow Iterrts exceed the artwunts percnitied to be held by 1tF.SPA, Lender
<br />shall account to Borrowtr tirr the exu:ss foods, as required by 1ZESPA. If ate antouncs of funds held by Tender at any
<br />time are eat sufficient to pay Ure Escrow .Iterrrs when due, Letrder may rwtify the .Borrower and require Borrower to
<br />male up the shortage as pc.nuitted by R.ESPA.
<br />The Escrow Funds are pledged as additiorwl security fox all suers secured by this Security Instrument. if
<br />BurrU~\'Cr tenders to Lender the full payment pf all such sums, Borrower's account shall be credited with tl-e balance
<br />reut:ri--ing for all iustalhnnttt iterru (a), (b), arrd (c) and any martgal;e intiurauee premium installment that lender has
<br />not becoure obligated to pay to the Secretary, and Lender shall prarnptly rel'uird any excess fundti to Borrower.
<br />Ctrt~uediately priar io a forec;lusure sale of the Property or its auluisitiott by Lender, Borrower's account shall be
<br />credited with any balance reurainitag for all iustalhr-ettts for itetr><w (a), (b), and (e).
<br />3. Application of Payments. All payrrrertts under paragruplrs 1 and 2 shall be applied riy Lender as firllaws:
<br />First, to the ruurtgage it'tsurar-ce preu-iun- to be paid by .Louder to the Secretary or to the rtaorttltly charge by the
<br />Secretary itktitead of ate u.totttlrly nurrtgage insurance prerrrin-u;
<br />Second. to any taxes, special assessrneuts, leasehold paytueuts or graur-d rents, and tire, flaad and ather hazard
<br />irisurattce pretatiuut5, as zeq:uired;
<br />Third, to interest duo under the Note;
<br />Paurilt, to arrtortizttiou of the principal of the Note; arrd
<br />Fifth, to late cJtargt:s due under the Note.
<br />4. FiFire, Flood and ()tlrer ti<Irtz~trd insurance. Bazrower shall insure all inrprovetnents on the Property, whether
<br />rrow iu existence oa~ subsetlueruly erected, against any hazards, catiualties, arrd cnntingerts;ies, including fire, for which
<br />Lender requirGS iusurartce. This .irtsuratu:e shall be ntairttairted in the amounts and for the periods that Lender
<br />ruquires. Burrerwer shall also insure all irttprove.u-errts on the Property, whether now iu existence or subsequently
<br />erected, against loss by floods to tlae extent retl'uired by tYte Secretary. All it>v5urance shall be carried with companies
<br />approved by Tender. ']'1-e insurance policies and any renewals shall be held by Lender and shall include lass payable
<br />clauses iu favor of, and in a fo.rnr acceptable to, I..ender.
<br />Itt the event of loss, Burrower shall give Lender itutttediate notice by mail. Lender rttay rrtalce proof of .loss if not
<br />tirade pro,irtptly by Bar~t•ower. Each insurance company concerned is hereby authorized arrd directed to make payment
<br />.For such loss directly to l..euder, instead of to }3arrower and to Ler-der jointly. All or any ,part of the itsurance
<br />proceeds nary be applied by Lender, at its aptinrt, either (a) to the reduction of ttre indcbtedr-ess under th.e Nate and
<br />this ~rcurity lustr~rn-ent, tirst to arty delinquent attrounts applied in the order in paragraph 3, and then to prepayn'teru
<br />of prira:ipal, or (b) to the zestorution or repair of the damaged. Property. Any application of the proceeds in ttre
<br />principal shall nut extc;nd nr postpone dr.e due data of the monthly payments which are referred to itr p;u'agraph 2, or
<br />cltartgv the artrnuut of such payurents. Any excess insurattcc; proceeds ever au amount required to pay al! outstanding
<br />indebtedness uud4.r the IVUte and this Security Instrutlrettk slrali he paid to the entity legally entitled thereto.
<br />lu the event of furet:lus~re of ttris Security Irtstruruent nr other tr'ausfer of kitle to the Property that extinguishes
<br />the iar.debtedn~ss, all right, title and interest of Borrower in and to insurance policies itr force shall pass to the
<br />purchaser.
<br />5. ()ccupanc}-, Preservation, A:Cainteuattce anci Protection of the Property; Horrower's Laren Applictrtiort;
<br />l.eascirolds. Harrower shall occupy, establish, arrd use the Property as Borrower's principal residence within sixty
<br />days after th.c execution of this Security I-tsttumerrt (or within sixty days of a latex sale ar transfer of the Property)
<br />and shall citutinu~ to occupy the Property as Borrower's principal zesidence for at least orte year after the date of
<br />uccupattcy, unless Lender deterrrriues that recluireutent will cause; urtduc hardship far Borrower, ^r unless extenuating
<br />circutustan;;es exist which 'are beyond Borro'wer's catttrnl. Borrower shall. ttntity Lender of any extenuating
<br />circuntstarrc:t=s. Burrower shall eat cuuur-it waste ur destroy, daunage or subsprntially change the Property or allow the
<br />Property to deteriorate, reasonable wear and teat excepted. Lender tray inspect the Property if the Property is vacant
<br />or abandoned ar the .loan is iu drfauit. Letrder tnay take reasonable actiozr to prirtect and preserve such vacant nr
<br />~~~4R(NE) 196v1 ~ Page 8 of H Initia~s:~_
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