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<br /> IP thc �wwunts hclJ by Lendcr fnr �scrow Items excccd thc umounts permiucd to hc hcld by R�SPA. l.endec
<br /> shall account to Borrowcr fnr thc ex�css funds us rcyuircd by RBSPA. If thc►�mounts of funds i�cld by Lcndcr nt nnp
<br /> time i�+ not sufficicnt to pay thc G'scrmv items wl►en duc, I.cnder may nodfy thc Burrowcr uuJ rcyuire Horruwei�to
<br /> make up Ihc deficiency ns permitted by RBSPA.
<br /> Tiic Escrow Funds urc pic:dgcd iis udditiouut �ccuri[y fur all nwii, +ccuie�l Uy thla Scicu��ty Inst►'witent. (f
<br /> Horrowcr tenders ro l.ender the full paymcnt af all such sums, Barrowcr�S ACCOUIII SI11U IIC l'iCd1�Cd Wltll lI1C baIUt1CC
<br /> remaining for all instullmcnt items(A),(b),nnd(c)nnd nny martg�ge insurance premium installment thut L�:nder has
<br /> not become obligated to pny to the Secretary, �nd Lender shull prompdy refund uny ex�ess funds to Barrower.
<br /> Immedintely prior to a furectosure snle af die Property or its acquisition by Lender, Borrower's account shall be
<br /> crcditcd with nny balnnce remnining for all installments for items(a),(b),nnd(c).
<br /> 3.A�;�!!c:ttan of Paym.r.ts.All pay�ncnts undcr paragraphs 1 and 2 shaU bc applted by Lender as f�(lavls:
<br /> i s. ro the mort�age insurunce premium to he paid by I.ender to the Secretury or to the monthly charge by thc
<br /> Secrctnry instc.�d of the monthly moti•tgagc insurance premfum;
<br /> accond,to any taxcs,special assessments, lensehold gaymcnts or ground rents,nnd fire, fload und ather hazard
<br /> insurnnce pren�iums,as required;
<br /> 3'hird,to interest dttc under the Nntc:
<br /> Fou t,to i►mortizution of the principal of the Note;and
<br /> FiQh, to lute chnrges due under the Note.
<br /> �.hlre,Hlood und Qther Hazard Insurunce.�orrower shall insure all improvemcnts on the Property, whether
<br /> now in existence or subsequently erected, against any hnzards,casualties,and contingencIcs, including fire,for which
<br /> i.ender requires insurance. This insurance shull be maintained in thc umounts and for thc periods that Lender
<br /> requires, Barrower shall als� insure ull improvemcnts on the Propeny, whether now in existence or subsequently
<br /> erected,agninst tass by tloods to the extent required by the Secretary. All insurance shall be carried with compnnies
<br /> approvcd by Lender. Tl�e insur:�nce policies and any renewals shall be held by Lendcr and shall include loss payable
<br /> clauses in favor of,and in u form acceptable to, I.ender.
<br /> In tl►e event af loss.Rorrower shsll give Lender immediate notice by mail. I.ender may make proof of loss if not
<br /> nv�rlP nromndy hy Rorrnwer. Frrh inc��ranrn�nm�►�ny rnnrrrr�r�l jc hrr�h;n���h^rt?ru,�g��Zf�:!�T^S!'.�.4.0 `�.A�S::°."!
<br /> for such loss directly to Lender, instead of to Borrower and to I..ender juintly. All nr uny part of the insurance
<br /> proceeds►nay Ue applIed by Lender,at its option, either(a)to thc rcduction of the indebtectness under the Note and
<br /> this Security[nstn►ment, first to any delinquent amounts applied in the order in paragraph 3, And then to prcpayment
<br /> of principal, or (b) to the restorntion or repair of the damaged �roperty. Any application of the proceeds to the
<br /> principal shall not extend o�postpone the due date of the mon!hly payments which are rcfcrred to in paragrupfi 2. or
<br /> change the amount of such payments. Any excess insurnnce proceeds over an nmount required to pay all outstanding
<br /> indebtedness under the Note and d�is Security[nstruinent shali be paid to the entity leg�liy cntitled thercto.
<br /> In the eve�u of foreclosure of this Security Instrument or other transfcr of title to Nic Property that extingufshes
<br /> the indebtedness, nll right, titl� n�id in!erest of Borrower in and to insurancc poticies in force shnll pass to the
<br /> purchaser.
<br /> 5.Occupnnc:y,Preservation, Maintenance s►nd Protcction uf the Property; Borrower's I.oan Application;
<br /> Le�►seholds. 8orrower shall accupy,establisl�, and use the Property a� Borrower's principal residence within siaty
<br /> days after the exewtion of this Security Instrument(or within sixty doys of a ister sale or transfer of thc Property)
<br /> :►ncl sh�ll eontinue to occupy the Property ns Borrower's prineipal residenee for at Ieast one year ufter the date uf
<br /> occupancy, unless L.ender determines that requirement will cause undue hardship for Borrower,or unless extenuuting
<br /> circumstances exist which are beyond Borrower's control. Borrower shaU notify Lender of any extenuating
<br /> circumstances.Borrower sl�ull not commit waste or destroy,damage or sub�tantinlly change the Pcoperty ur allow thc
<br /> Pmpeny tn deteri�rnte,reationsble wear and tear exceptcd. Lcnder may inspect tt�e Pronerty if the Prrrt�eny bs vac�ht
<br /> or abandoned or the loan is in default. Lender may take reasonflble action to protect and prescrve such vacant or
<br /> �-4RINE) rapo 3 ot e " Printed on Rocyeled Poper InlUelr.�ue (,(\
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