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<br />Lender may, at any time, collect and hold arrtounts for �scrow 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 SeTtleanent Procedures
<br />Act of 1974, 12 U.S.C. Section 2b�1 et sey. and implementing regulations, 24 CFR Part 3500, as they may be
<br />amended from [ime to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated
<br />disbursements or disbursernents before the 13orrower's payments are available in the account iriay not be based on
<br />amounts due for the mortgage insurance premium.
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender
<br />shall account to Borrower for the excess funds as required by 1�I:SPA. If the amounts of funds held by Lender at. any
<br />time are not sufficient to pay the Lscrow Items when due, I.ender may notify the Borrower and require Borrower to
<br />make up the shortage as permitted by R�SPA.
<br />The Escrow Funds are pledged as additional security for al] sums secured by this Security Instrument. If
<br />Bc�rrower tenders to Lender the full payment of all such sums, Borrower's account shall he credited with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has
<br />not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower.
<br />Immediately prior to a f'oredosure salc of the Property or its acquisition by Lender, Borrower's account shal] be
<br />credited with any balance remaining for all installments for items (a), (b), and (c).
<br />3. Apptication of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as f'ollows:
<br />First, to the mortgage insurance prernium to be paid by Lender to the 5ecretary or to the anonthly charge by the
<br />Secretary instead of the monthly mortgage insurance premium;
<br />Second, to any taxes, special assessments, leasehold paynients or ground rents, and fire, flood and other h<<zard
<br />insurance premiums, as required;
<br />Third to intcrest due under the Note;
<br />Fourth, to arnortization of the principal of the Note; and
<br />Fifth, to late charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether
<br />now in existence or subsequently erected, against any hazards, casualties, and contingencies, including �re, for which
<br />I,ender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender
<br />requires. Borrower shall also insure all improvements on the Property, whetkaer now in existence or subsequently
<br />erected, against loss by floods ta the extent required by the 5ecretary. All i��surazace shall be carried with cornpanies
<br />approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include loss payable
<br />clauses in favor of, and in a form acceptablE to, Lender.
<br />In the event of loss, Borrower shall give Lender imniediate notice hy rnail. Lender may �nake proof of loss if not
<br />made promptly by Borrower. Each insurance con�pany concerned is herehy authorired and directed to make payment
<br />for such loss directly to Lender, instead of to Borrower and to Lender jointly. A11 or any part of' the insurance
<br />proceeds may be applied by Lender, at its opcion, either (a) to the reduction of the indebtedness under the Note and
<br />this Security Instrument, first to any delinquent amounts applicd in the nrder 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 extcnd or postpone the due date of tl�e monthly payments which are reterred to in paragraph 2, or
<br />change the amount of such payments, Any excess insurance proceeds over �n amount required to pay all outstanding
<br />indebtedness under the Note 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 transfcr of tiile to the Property that extinguishes
<br />the indebtedness, all right, title and interest of I3orrower in and to insurance policies in force shall pass to tk�e
<br />purchaser.
<br />5. Occupancy, Yreservation, Maintenance and Prc�tE�ction of the Property; Borrower's Loan Application;
<br />Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty
<br />days after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property)
<br />and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of
<br />occupancy, unless Lender determines that requirement will cause undue hardship tor Borrower, or unless extenuatin�
<br />circumstances exist which are bcyond Borrower's control. Borrower shall notify Lender of any extenuating
<br />FHA Deed af TrusrNE p�g fi
<br />VMP rj �' ��; VMP4R� 91�1080 9)
<br />Wolters Kluwer Flnandal Services .• r J
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