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201000849
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<br />21 11
<br />_..'... W. i:.llLl.f.:..11 ................. _ ............................................ _ ...........
<br />If the amounts hold by Lender for 13scrow Items exceed the amounts pertnkitted to be held by RESPA, Lander
<br />shall account to Bo#rower for the excess funds as required by Rl~SPA. If the amounts of funds held by Lender at auy
<br />time are not sufficient to pay the Escrow Items whop duo, Lender may notify the Borrower and require Borrower to
<br />malue up the shorta$o as permitted by RLSPA.
<br />The EBCTOW Funds are pledged as additional security for all sums secured by this Security Instrument If
<br />Borrower tendons to Lender the full payment of all such sums, Botxawer's account shall be credited with the balance
<br />remahting for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has
<br />not become obligaCed to pay to the Secretary, and Lender shall promptly refund any excess funds to Harrower.
<br />Immediately prior to a foreclosure sale of the Property ar its acquisition by Lender, Borrawor's account shall be
<br />credited with any balance remaining far all installments for items (a), (b), and (c).
<br />3. Appllcatioti of Payments. All payments under paragraphs l and 2 shall be applied by Lender as follows:
<br />First, to the xtibrtgage insurance premium to by paid by Lender to the Secretary ar to the monthly charge by the
<br />Secretary instead nfthe monthly mortgage insurance premium;
<br />Second, to any taxes, special assessments, leasehold payments nr ground rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />,T„~' ,,, to interest due under the Note;
<br />earth, to amdrtization of the principal of the Nato; attd
<br />~, to late c~arges due under the Note.
<br />4. Fire, l5"lood and Uther Hazard Itnsuraxtce. Borrower shall insure all improvements on the Property, whether
<br />now in existence or subsequently erected, against anky hazards, casualties, and contingencies, including fire, for which
<br />Lendor requires in~urance. This' insurance shall be maintained in the amounts and for the periods that Lendor
<br />requires. Borrower :shall also insure all improvements on the Property, whether now in existence or subsequently
<br />erected, against lass by floods to the extent required by the Secretary, All insurance shall be carried. with companies
<br />approved by Lende>t, The insurance policies and any renewals shall be held by Lender and shall include loss payable
<br />clauses in favor nf, end in a form acceptable to, Lender,
<br />In the event aflass, Barrawor shall give Lender immediate notice by xttail. Lender may make proof of loss if not
<br />made promptly by Harrower. Bach insurance company concerned is hereby autliarized and directed to make payment
<br />far such loss directly to Loader, instead of to Burrower and to Lender jointly. All or any part of the insurance
<br />proceeds may be ap~ilied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and
<br />this Security Instruc~ent, first to any delinquent amounts applied in the order in paragraph 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged property. Any application of the proceeds to the
<br />principal shall not ektend or postpone the due date of the monthly payments which are referred to in paragraph 2, or
<br />change the amount of such payments, Any excess insurance proceeds over an amount required to pay all outstanding
<br />indebtedness under the Nate and this Security Instrument shall be paid to the entity lygally entitled thereto.
<br />In the event of foreclosure of this Security Instrument nr other transfer of title to the Property that extinguishes
<br />the indebtedness, all right, title and interest of Borrower in and to insurance policies in forcy shall pass to the
<br />purchaser.
<br />S. Uccxtpancy Preservation, Maintenance and Protectlaxt of the Property, Borrower's Loan Application;
<br />Leaseholds. Borm~ver shall occupy, establish, and use the Pxaperty as Borrower's principal residence within sixty
<br />days after the execution of this Security Instrument (or within sixty days of a later solo or transfer of the Property)
<br />and shall continue to occupy the Property as Borrower's principal residency for at least one year after the date of
<br />occupancy, unless Lender determines that requirement will cause undue hardship for Borrower, or unless extenuating
<br />circumstances exist; which are beyond Borrower's control, Borrower shall notify Lender of any extenuating
<br />circumstances. 13orr~-wer shall not commit waste or destroy, damage or substantially change the property or allow the
<br />Property to deteriorate, reasonably wear and tear excepted. Lender may inspect the Property if the Property is vacant
<br />or abandoned or the Ioan as in default. Lender may take reasonable action to protect and preserve such vacant ax
<br />-4ti(NE) leapt) P~qe 3 of B
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