|
2o�oos�i4
<br />Lender may, at any time, collect and hold amounts for Escr�w [tems in an ag�regatc amount not to exceed the
<br />maximum amount that may be required For Borrower's escrow account under ihe Rea] Gstate Settlem�nt Procedures
<br />Act of 1974, 12 U.S.G. Section 2601 et seg, and implementing regulations, 24 C.FR Part 3500, as they may be
<br />amended from time to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated
<br />disl�ursements or disbursements bcfora the Borrower's payments are available in the accaunt may not be based on
<br />amaunts due for th� mortgage insurance pramium.
<br />If the amounts held by Lender for �scrow Icems exceed the amounts perrnitted to be held by RE;SPA, Lender
<br />shall account to Barrower for the excess funds as required by R�SFA. If the amounts of funds held by Lendcr ac any
<br />tim� are not sufficient to pay the Escrow Items when due, I.ender may natify thc Borrower and reguire Borrower to
<br />make up the shortage as permitted by R�SAA,
<br />The Escrow Funds ara pledged a.s additional security for all sums secured by this Security lnstrument. If
<br />Borrower tenders to Lender th� full payment of all such sums, Borrower's accaunt shall be credited with the balance
<br />remaining for all installment itcros (a), (b), and (c) and any martgage insurance premium installment that I.ender has
<br />not become obligated to pay to the Secretary, and I,ender shall prornpily refund any excess funds to Borrower,
<br />Immediately prior to a foreclosure sale of the Property or its acyuisition by Lender, Borrawar's account shall be
<br />credited with any balance remainin� far all installrnents for items (a), (b), and (c),
<br />3. Application of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />First, to the mortgage insurance premium to be paid by T,ender to the Secretary or to the manthly charge by the
<br />Secretary instead of the monthly mortgage insurance premium;
<br />Second, to any taxes, special assassments, leasehold payments or graund rents, and fire, flaod and other ha�ard
<br />insurance premiums, as required;
<br />Third, to interest due under the Nate;
<br />Fourth, to amartization of the principal of the Note; and
<br />Fifth, to late charges due under the Note.
<br />a. Fire, Flood and Other Hazard Insurance. Borrawer shall insure all improvemcnts on the Property, wheth�r
<br />now in existence or subsequently erected, against any ha•r.ards, casualties, and contingencies, including fire, tor which
<br />Lender requires insurance. This insurance shall be maintained in the amounts and far the periods that Lender
<br />requiras. Borrawer shall also insure all improvements an the Property, whether now in existence or subsequently
<br />erected, against loss by floods to the extent rcquired by the Secretary. All insurance shall be carried with companies
<br />approved by I,ender. The insurance palicies and any renewals shall bc held by L,ender and shall include ]oss paya6le
<br />clauses in favor of, and in a form acceptable to, C,ender.
<br />In the event of ]oss, Borrawer shall give Lender immediate natice by mail, i,ender may rnake praaf af loss if not
<br />made pramptly by �3orrawer. Each insurance company concerned is hereby authorized and directed to make paymeni
<br />for such loss directly to Lendar, instead of to E3orrower and to Lendar jointly. All or any part af the insurane�
<br />proceeds may be applied by Lender, at its option, either (a) to the reduction af the indebtcciness under the Note and
<br />this Security [nstrument, tirst to any delinquent amounts applied in the arder in paragraph 3, and then to prepayment
<br />of principal, or (b) to the restaration or repair af the damaged Property. Any application of che proceeds to the
<br />principal shall not extend or postpone the due date of the monthly payments which are referred to in paragraph 2, or
<br />change the amount af such payments, Any excess insurance proceeds over an amount required to pay all outstanding
<br />indebtedness under the Note and this 5ecurity Instrument shall be paid to the entity legally entitled thereto.
<br />In the event of fareclosure of this Security Instrument or ather transfer of title to the Property that extinguishes
<br />the indebtedness, al] right, title and interest of Borrower in and to insurance palicies in force shall pass to the
<br />purchaser.
<br />5. Occupancy, Preserv�tion, Maintenance and Protection af the Property; Barrower's Loan Application;
<br />Leaseholds. Sorrower shall accupy, establish, and use the Property as Borrower's principal residence within sixty
<br />days after the execution of this 5ecurity Instrument (or within sixty days of a later sale or transfer of the Araperty)
<br />and shall continue to accupy the �'roperty as Borrower's principal rasidence far at least one year after the date of
<br />occupancy, unless L�nder determines that requirement will cause undue hardship for Barrower, or unless extenuating
<br />circumstances exist which arc beyond Barrawer's control. Barrower shall natify Lender of any extenuating
<br />circumstances. F3c�rrower shall not commit waste or destroy, damage or su6stantially change the Property ar allow the
<br />Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Property is vacant
<br />or abandaned or the loan is in default. I�ender may take reasonable action to protect and praserve such vacant or
<br />135].015924
<br />i� i i
<br />�-4N�NE) �oao�� Page 3 0l B
<br />
|