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200909336
<br />Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the
<br />maximum amount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures Act
<br />of 1974, 12 U.S.C. Section 2601 et seq. and implementing regulations, 24 CFR Part 3500, as they may be amended
<br />from time to time ("RESPA"), except that Y e cushion or reserve permitted by RES Abe bun ~ ou amounts due forethe
<br />or disbursements before the Borrower's pa meats are available in the account may
<br />mortgage insurance premium. ermitted to be held by RESPA, Lender shall
<br />If the amounts held by Lender for Escrow Items exceed the amounts p
<br />account to Borrower far the excess funds as required by RESPA. If the amounts of funds held by Lender at any time are
<br />not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Harrower to make up the
<br />shortage as permitted by RESPA.
<br />The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument. I orrawer
<br />tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance remaining for
<br />all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has not become
<br />obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Harrower. Immediately prior to
<br />a foreclosure sale of the Property or its acquisition by Lender, Barrower'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 1 and 2 shall be applied by Lender as follows:
<br />First, to the mortgage insurance premium to be paid by Lender to the Secretary ox to the monthly charge by the
<br />Secretary instead of the monthly mortgage insurance premium;
<br />Second, to any taxes, special assessments, leasehold payments ox ground rents, and fire, flood and other hazard
<br />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 Nate.
<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements an the Property, whether
<br />now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which
<br />Lender requires insurance. This insurance shall be maintained in the amounts and fox 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 lass payable clauses in favor of, and
<br />in a form acceptable to, Lender. make roof of loss if not
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may p
<br />made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for
<br />such loss duecdy to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may
<br />be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the a ° eat of thrimci alrtor
<br />Instrument, first to any delinquent amounts applied in the order hcation of the ~ o eeds to the prin pal shat nvt extend
<br />(b) to the restoration or repair of the damaged Property. Any app ~ p
<br />or postpone the due date of the monthly payments which arc referred to inapaoutstand2uig u~d btgedness under the Note
<br />payments. Any excess insurance proceeds over an amount required to pay
<br />and this 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 extinguishes the
<br />indebtedness, all right, tide and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Laan 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 Security Instrument (or within sixty days of a later sale or transfer of the Property) and shall
<br />continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy,
<br />unless Lender determines that requirement will cause undue hardship for Borrower, ox unless e~~cumstances~. Bor ower
<br />exist which arc beyond Borrower's control. Borrower shall notify Lender of any extenuating
<br />shall not commit waste or destroy, damage or substantially change the Property or allow the Property to deteriorate,
<br />reasonable wear and tear ckeepeasonableeaction to pr feet and preservclsuch v scant or abandonednProperty. Bor~owcr
<br />in default. Lender may to
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