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20100910�
<br />If the ainounts held by Lender for �'scraw Items �xcccd the amounts permitted to be held by R�SPA, L,�nder
<br />shall account to Borrower f�r the �xc:uss funds as required by RESPA. If the amounts of funds h�ld by Lend�r at any
<br />time are not sufficicnl l�� pay the Escrow Items when due, Lender may notify lh� Borrower and require Borrower to
<br />make up the shc�rtage as perrnitted by RESPA.
<br />Th� �scrow Funds are pledged as additional security for all surns seuured by this Security Tnstrument. Tf
<br />BanrUwc:r C�nd�rs to L,ender the full payment of all such sums, Barruwer's accUUnt shall be credited with the balance
<br />r�maining far all installment items (a), (b), and (c) and any mortgage insurance premium installment that L,ender has
<br />no[ became obligated to pay to the Secretary, and I,cnder shall pramptly refund any excess funds to Borrower.
<br />Immediately priar to a foreclosure sale of the Property c�r its acquisitian by L.ender, Borrower's account shall be
<br />cr�dited with any balance remaining for all installments far itsms (a), (b), and (c).
<br />3, Application of Paymentti. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />Nirst, to the mortgag� insuz'ance premium to be paid by Lender to the Secretary or to the monthly charge by the
<br />Secretary instead of the monthly nriartgage insurance premium;
<br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other haaard
<br />insurance premiums, as required;
<br />Third, to interest du� under the Note;
<br />Fourth, to amortization nf the principal uf the Nate; and
<br />Fifth, to late charges due undear t,he Not�,
<br />4. Fire, Flood and ()ther Hazard Insurance. Borrower shall insure all improvements on the 1'roperty, whether
<br />now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which
<br />T,ender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender
<br />requires. Borrow�r shall also insure all improvements on the Property, whether now in existence or subsequently
<br />cre:ct�d, against loss by floods to the extent required by the Secretary. All insuranc� shall b� carri�d with campanic;a
<br />approved by Lender. The insurance policies and any rcnewals shall be held hy I.r:nder and shall include lass payablc
<br />clauses in favor of, and in a form acceptahle lo, Lendcr.
<br />In the event of loss, Borrower shall give I,ender immediate nolice by mail. I,�ndCr may make prpaf af lass if nut
<br />rnade pramptly by Borrower. Each insurance company concerncd is he.reby auth��riz�d and diarected ta mak� payrn�nt
<br />far such loss directly to Lender, instead of to Borrower and to T.ender jointly. All or any part of the insurance
<br />praceeds tnay be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and
<br />this Security Instrument, 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 lhe damaged Property. Any applicalian of Che procecds lo the
<br />principal shall not extend or postpanc khe due daLe af the znUnthly paymc:nts which are referred to in paragraph 2, ar
<br />change the amount of such paymenks. Any �xcess insuranc� pr�>ce�ds over an arnaunG required to pay all autstanding
<br />indebtedness under the Nc�t� and tlxis Sscurity Instrument shall be paid to ttre entity legally entitled thereta,
<br />In the evenk af fareclosure of this Security Tnstruruent or other transfer of title to the Property that extinguishes
<br />the indebtedness, all right, title and interest of Bonower in and to insurance policies in force shall pass to the
<br />purchaser.
<br />5. Occupancy, Prescrvation, Maint�nance and Protection of th� Property; BorroW�r's Loan Application;
<br />Leaseholds. 13orrower shall occupy, cskablish, and use lhc Praperty as BUrraw�r's princ:ipal r�sidcncc within sixty
<br />days after the execution of this Sc:curity Ins[rument (or within sixty days of a latcr sale ar transf�r of Ihe Property)
<br />and shall continue to occupy th� Prap�rty a5 Bprrpw�r's princ;ipal rssid�nc� far at least one year aft�r th�: datc af
<br />occupancy, unless Lender d�t�armin�s that z'squir�ment will cause undu� hardship Fur BUrrawcr, Ur unless extcnuafing
<br />circumstanc�s �xist which are beyond Borrower's concral. Barrawer shall notify L.ender af any �xt�nuatin�
<br />circumstances. Borrawer shall not commit waste or destroy, damage or substantially change the Property or allaw khe
<br />Praperty ta deterioraGe, reasonable wear and tear excepted. Lender may inspect the Property if the Property is vacant
<br />ar abandoncd ar th� laan is in default. Lender may take reasonable actian ta protect and pres�rv� such vacanl c�r
<br />� 4R�NE) 196011 Paga 3 af S
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