|
2Q1009338
<br />L�cn�der may, at any time, collect and hold amounts for Escrow Items ain an aggregate amount not ta exceed the
<br />maximum amount that may bc rcquired Por Bormw�r's escrow account under the Real Estate Settlement Procedures
<br />Act of 1974� 12 U.S.C. 5ection 2601 et seq. and implementing regulations� 24 CFR Part 3500, as they may be
<br />amended from time tp time ("RESPA"), except that the cushion or reserve permitted by RSSPA for unanricipated
<br />disbursements or disbursements before the Borrower's payments are available in the accaunt may nat be based on
<br />araounts due for t�e mortgage insurance premium,
<br />If the amounts held by Lender for Escrow Items exceed the amounts pern�itted to be held by RESPA� Leader
<br />shall account to Barrower for tb,e cxcess funds as required by RESPA. If the amounts of funds held by Lender at any
<br />tirn�c are not sufficient to pay tha F,�crow Items when due, Lender may notify the Borrawer and require Borrower to
<br />make up rhe shortage as penanitted by RFSPA.
<br />The Fscrow Funds arc pledged as additional security for all swns secured by this Security Instxument. If
<br />Barrower tenders to I.ender the full paymeat of all suah awns� Sorrower's account shall be credited with the balance
<br />remaining for all instaXlment itcros (a), (b), and (c) and any mortgage iasurance premium installment that Lender has
<br />not be�ome abligated to pay W the Se.crctary� and Lender shall promptly refund any excess funds to �orrower.
<br />Immediately prior to a foreclosure sale of the Pmperty or its acquisirion by Le�ader, Borrower's account shall be
<br />credited with any balance remaining fnr all installments for items (a), (b) and (c)•
<br />3. Applicatlpn aP Payments. AU, payments under paragraphs 1 and 2 shall be applied by Lender as fallaws:
<br />First, to the mortgage insurance premium to be paid by L.e�der to the Secretary ar ta the monthly charge by the
<br />Secretary instead of the monthly mortgage insurance premium;
<br />Secand, to any tayces, apecial assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />inswrance praniums, as required;
<br />Third, to interest due under thc Note;
<br />Fourth, to amartization of the priucipal of the Note; and
<br />�ifth, to lat� chargca due under the Note. •
<br />4. Ftre, Flopd �nd Other Hazard Insurance. Borrower ahall insure all improvements �n the Property, whether
<br />now in existence or subs�quentlY er�� a8ainst any hazards� casualties, and contingencies, including fire, for which
<br />L,ender requires insurance. This insurance shall be maintained ia the aiaounts aad for the periods ttiat Lender
<br />requires. Borrower sl�all also insure all improvcments on the Property, whetherr now in existence or subsequently
<br />erected, against loss by floads ta the extent required by the Secretary. All insurance shall be carriad with companies
<br />aPProvad by Le�der. Th� insurance policies and any reaewals shall, be held by L.ender and shall include loss payable
<br />clauses in favor of, and in a form acceptable to, Lcnder.
<br />In the event of loes, Borrower shall givc Lender immediate notice by mail. Lerider may mal�e pronf of lass if not
<br />made pmmptly by Borrower. Each insurance company concerned is hereby authorized aad dire�tcd to make payment
<br />for such loss dir�tly tp I.cnder� instead of to Borrower and ta I.endsr joim#ly. All ar any part of the insurance
<br />proceeds may be applied by Lend�r� at its option, either (a) to the reduction of the ind�bt�dn@ss under tbe Note and
<br />this Security Instrument, �irst to auy delinquent amounts applied in the order in paragraph 3� and then to prepayment
<br />of principal, or (b) to the resWration or repair of the damaged Property. Any application of the pr�ce�ds ta the
<br />principal shall not extend or postpone the due date of the monthly paynlents wluch are referred to in paragraph 2, or
<br />changc thc a�unt of auch paym�ats. Any excess insu�ra�ace proceeda over aa amount requ�ired W pay al! outstanding
<br />indebtedness un�r the Note and this Security Instrument ahall be paid to the entity legally entitled thereto.
<br />In thc ev�nt of foroclosure of thi,a Sccurity �nstrument or other transfer of titl� to the Property that extinguishes
<br />the indebtedness, a11 right� title and interest of Borrower in aud to insurance policies in Porce �hall pass to the
<br />purc�ha�er.
<br />5. Otcupancy, Pre�rvatlan, Maintenance artd Prat�ctinn of the Pcaperty; Borrawer's Loan A�pllcation;
<br />I.easeholds. �orrower shall occuFY. cstablistt, aud us8 the Property as Barrower's principal residence within sixty
<br />days after tb►e execution of this Security Insaument (or within sixty days of a later sale nr transfer of the Property)
<br />and shall rantinu� to occupy the Property as Borrower's principal residence for at least on�e year after the date of
<br />occupancy, unl�s,s Lender determiues that requirement will cause undue hatdship for Borrower, or unless extenuating
<br />circumstances exist which are ond Barrower's control. Borrower shall noti Lender of an eactenuatin
<br />FMA Da�d of Trwt�JE q/gR
<br />VMp O �VMP4RINE) (0809)
<br />Wdurs Kluwu FMirw1Y Srrvlqr � v� Pepa 3 of 9
<br />
|