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200910238
<br />Lender nnay, at any tin-le, collect and hold lirtlounts fo;' Escrow Items in an ~t ;gregate ztttaoultt not to e?tceed the
<br />ntaxintum amount that. inay be rr:gfi.ired for Borrn~~°er's escrow account uzadez• the Real lwst<zte Settlement Procedures Act.
<br />of I974, l~ U.S.C. Sectiotn 2601 et secy. and inplezzaeutilag regfilations, 24 Cl~R Part 3500, as they inay be atttended
<br />from tiixte to time ("ItESPA"), except that the Cushion Ur resolve perniittecl by RESPA for unaifticipilte(I (lisbtirseinc:.nts
<br />of disbursements before the BUrrowet''s payments aze available in rite account nnay nat. he based oin amounts dtie for fire
<br />zuartgage insuxaitce pi•entitttn.
<br />If the altnounts held by Lender for Escrow Itela)s exceed rite ttllaour~ts pexnnitt.ed to be held by RESI'A, Lender shall.
<br />account in Borrower for the excess funds as required by R.FSPA. If the a.uiotutts of funds held by Lender at any tune are
<br />ttat sufficient to pay the Escrow Items rvhe,n due, Lender inay zlotify the Borrn~ver and require fiorl•ower to make up the
<br />slntiztage as perinitled by RESPA.
<br />The Escxaw Fulad:s are pledged as ad(iitional security foz• all sums secured. by this Security insti~utnent. If Borrower
<br />tenders to Lelader the full pa.ynlent of all such sums, I3orrUwer'c ;lccoi.unt. shall. be Cxecli.ted w~rth the balance renlainixig for
<br />all instalilncztt itezxts (a), (h), and (c} and any mortgage insurance prentiuixt installment that Lender Yeas z~ot become
<br />obligated to pay to ille Secr•etal•y, an.tl L.ende.r shall pxomptiy refiuld arty r.xcess fiiilds to I3Urrower. Immediately prior to
<br />a foxeClasul'e sale of the Property or its acquisition iy I.~:nder, Borrower's account shall b(: cxediteci with airy balance
<br />reittaizzutg for a]] installments fox items (a), (h), anal (c),
<br />3. Application of P>3,yntents. All payments ender paragraphs I and 2 shall be applied by Leradez• as 1'Ullo~vs:
<br />First, to the mortgage insurarzCe prenniutn tU be paid by Lender to the Secretary or t~ the monthly chaxge by rile
<br />Secretary instead of the montlnIy rnortga.ge insurance premium.;
<br />Second, to airy taxes, special assessmeltts, leasehold 1)aynteilts or ground rents, and. tire, flood and other hazard
<br />ittsul'attce prent.ifinls, as regtr.ired;
<br />'I'1)irci, to iztterest (Ifze under the Note;
<br />Fourth, to aznortizatiUn Uf the pxizzcipal of the Note; aind
<br />Fif'tlz, to late elzai'ges due under tine I~Tote.
<br />~#. Ftre, I?lond atzd Oll;ier ]'Iazartl hnsurance, Borxow~.z' shall i:ttsure alI improvemeztts on the Property, whether
<br />now ilt existence Ur sfibsegttently e.l°ectecl, against any hazards, casualties, and contingencies, iu:luding fire, for tivhich
<br />Lender requires insurance. This insurance shall be maintained in the atttouttts and for the periods that Lcxtdet' reglzit'es.
<br />Bort'owel: shall also insure alt intprmements nn file Property, wlletller now iu existence Ur sulisequeift.ly erected, against
<br />1t)ss by floods to the extent required b}r the Secretary. All izsurance shall be Cai1•ied with cUmpani.(:s apprpved by I..erlcler,
<br />'I'he insurance policies and any xenewals shall be held by I..ender and shall inclftd.e loss payable clauses in fivox of, and
<br />ui a tiii•in acceptable to, Lender.
<br />I11 fire event of loss, Borrower shall give Under irrtutediate notice by mail. Lender titay make proof of loss if not
<br />znatle promptly by Borrower. Each insurance company cazac.erned is hereby authorized and dii'eCtecl to make payment for
<br />such loss directly tU Lender, instead of to Borrotiver and t.o Leerier jointly, All Ux army part. of the itisfirance prUC.CCCIs tntay
<br />bc: applied by Lender. a.t its al?tiozt, either (a) to the reduction of the indebtedness under the Note atad this Security
<br />Instrumeatt, Frst to array delinquent amounts applied .in lh+; order i1 pa.ragral>lz 3, aatd then to prepayment of principal, or
<br />(b) to the t•estoration or repair of the damaged. Property. Any application of tine proccecls to the principal shall Writ. extend
<br />or postpone the due date of the monthly l?ayzt~teztts nt•]tich are referred to in paragxal)h. 2, Ur change the amount of such
<br />payments. Azay excess insfuancc pracceds over an amount required to pay all vutstaild.i.ns; indebtec1ness under the:. Note
<br />altcl this Security Instruillent shall be paid to the entity legally elatitled thereto.
<br />In tine event of Foreclosure of this Security Instz•i.inlent nr other transfer of title to t11e Property that extula zislaes tine
<br />itlcleittedztess, all right, title a.ndnlterest of Borrower i.n and t.o izasuralnce policies it1 force shall pass to thi~. pfii•Chaser,
<br />5. Occupancy, Preservatio»;, }1•Laitltenance azarl Protection of fire Property; Borr4~ver'S Lt-art Applicatiatt;
<br />Least:lioltls. Borrower shall occupy, estilhlish, attd flSe the PrUpe2'ty aS BQii-UWeT'•S prt11C1pa1 L'eSldeitCL' wtl71.1.11 Sixty days
<br />after the ex.eetltion of this Security Instrulueilt (or witkzirt sixty clays of a later sale ni• traztsPer of fire Prop(:z•ty} alid shall
<br />e(lntinue LU QCCU.17}' t11E Property as PorrO\veC'B principal residczzce for at least ooze year' after the date at' occupancy,
<br />unless Lender d.ete.rntines that requirezl:zent will cause uudue hardship for Borro~~:er, Or finless extezlfiati.ng circurnstazt.ces
<br />exist ~vhiCh are 17eyond BorrU~ver's control. Borrower shall notify Lender of airy ei;teftuating circutnstanc.es. Borrower
<br />shall not c.Umntit Waste or destroy, daznage or substatntially change the Property or allow tine Property tU detct~iorate,
<br />rrasozaable wear altd tear excepted. Lender nzay inspect the Property if the Property ig vacaflt nr abandoned or t.h~: ball is
<br />in default. Linder nlay take; reasonable action to protect and preserve such vacant or hhazzcltirlecl FrUpariy. F3oa'rower
<br />•4N(NE) loao~l In~tfais: ~H
<br />Pape 3 of 6
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