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<br /> If thc umounts h�ld by l.cndcr for Escrov� Items excced thc umu�aus permincd to bc hcld by I2ESPA, L.�ndcr
<br /> shall i►ccourt to Horrowcr far the exccss funds as rcyulred by I�ESPA. IF the amounts iif f�mds held by l..ender ai any
<br /> � timr is not sufficicnt te�pay d�c Escrow Itcros wl�ai duc, Lcndcr niuy nutify dic Q�i�ruwer und it;quirc Norrowcr to
<br /> roake up the deficienev nc na�rmittn�l h�RACPA,
<br /> - Tlte Escrow Funds arz plectged As udditionul security for ull sums sccured by this Security Instrument. If
<br /> Borrower tcnders to[,�:nder the full pnyment of all sucli sums, Borrower's uccnunt shall bc crcdited with thc balance
<br />- remuining for nll instaiiment items(a), (b), :►nd(c)and uny mongage insurunce premium instaliment that [.cnd�cr has
<br /> not bccome obliguted to pay to the Secretary, and l.ender shall promptly refund any excess fimds to Borrower.
<br /> - lmmediately prior ro a foreclosurc.sale af thc Praperty or its acquiaition by Lender, Borrawcr's account shall be
<br /> credited with uny balance remaining for all instaUments for items(u),(b),and(c).
<br /> 3.r�pp7ic:atian of 6'aya�ents.All payments under paragraphs I und 2 shall bc applicd by L.ender ns follows:
<br /> Firs, to thc mart,�age insurancc premium to be paid by Lendcr to thc Sccretnry or t� the inonthiy ctiargc by the
<br /> Secretary instead of the mnnthly mnrt��co+e insur�tce premies�n:
<br /> Secon�c, to any tuxes,special assessments, leasehold payments or ground rents,artd fire,tlood and other hazard
<br /> insurance premiums,as required;
<br />° Third,to in[crest duc ur.der thc Note; �
<br /> ourt , to amonization of the principal of the Note;and
<br /> �if4h,to Ittte charses due under the Note.
<br /> 4. Fire, Elood and Other Hawrd Insurnnce. Honowcr shall insurc all improvemcnts on the Property,whether
<br /> now in existenee�r subsequently erected,against any hazards,casualties,:►nd contingencies, including fire, for which
<br /> Lcndcr requires insurance. This insurnnce ahall be maintained in the amounts und for the periods that Lender
<br /> rcquires. Borrower shall afso insure nll improvements on the Property, whether now in existence or suhsequcntly
<br /> erec;ted,against loss by floods to the cxtent required by�tie Secretary. All insurance shall be carricd with companies
<br /> approved by L,Ender.The insurance policies and any renewnls shall 6e held by L.ender und shall include lass payable
<br /> clnuses in fuvor of,and in a form acceptable to,Lcnder. •
<br /> in the event of loss,Borrower shall give I.ender immediute notice by mail. I.ender may mak�proaf of loss if not
<br /> . uiuuc prumpify oy Borrower. Each insurance compm�y concerned is hereby authorized and directed to make payment
<br /> for such loss directly to Lender. instead of to Horrowcr and to I..cnder jointiy. All or :uiy part of the insurnnce
<br /> procceds may be applied by i..cnder, at its option,either(a)to the reduction of ti�e lndebtedness under the N�te and
<br /> this Security Instrnment, first to any delinyucnt amounts npplicd in the order in paragraph 3,und then ta prepayment
<br /> of principal, or (b) to ttie restoration or repaie of the damaged Property. Any upplication of the proc�eds to the
<br /> principal sl�all not extend ar postpone thc due dute of the monthly puymcnts which are rcferrcii to in par:�£ruph 2, or
<br /> change the amount of such payments. Any excess insuraner.proceeds over an nmount required to pay all outstanding
<br /> indebtedness under the Notc and this Security Instrument ahall be paid to the entity Icgally entitled thcreto.
<br /> In the event of foreclosure of tliis Security Instrument or other transfer of title to the Property that extinguishes
<br /> the indebtedness, ull right, title and interest of Borrotver in and to insurance policics in force shall pass to the
<br /> purchascr.
<br /> 5. Uccupancy, Preservutlon, Maintenanre and Proiection of the Property; Borrower'.� Loan ApNlication;
<br /> I.easeholtis. Bocrower shall occupy, r,stablish, and use tlte Propeny as Horrower's principal residence within sixty
<br /> days aRcr the execution of this Security Instrument (or within sixty days of u latcr sale or transfer of the Aroperty)
<br /> and s�iall continue to occupy the Property as Borrowsr's principal residence for at least one year after the date of
<br /> , occupancy,unlcss Lender determines that requirement wiU cause undue hardship for Borrower,or unless exter�uating
<br /> circumstances exist which are beyond Horrower's control. Borrower sha{I notify Lender of any extenuating
<br /> circumstanres. Borrower shait not eommit w�ste or destroy, damage or substantially chanRe the Propeny or ullow thc
<br /> �- :ro�icdy iv dc[eriurate,reasonabie wear and tear excepted. fi.ender m�y inspe:ct thc Property if die Property is vacant
<br /> or nbandoned or the loan is in default. Lendcr may takc reasonable uction to protect und preservc su�h vacant or
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