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201009472
<br />Lender m.ay, aC any ticne, collect and hold smounts for F.scxow �tems in an aggregute arnount nat W exceed the
<br />maxi�nUm amaunt that may be required for Borrnwer's escrvw ac�unC under rhe Rc�l Estate S�t.tlement Procedures
<br />Act v€ 1974. X 2 U. S. C. Section 2601 et seq. and implementing r�gu�ataons, 7A C�R Pact 3500, as they may be
<br />amended fram time to I�me ("R�SPA"), exoept that the cushion or.reserva �rmitted by ItESPA fvr unanticipated
<br />disbursEm,ents ar disbursements before the �orrower' s paym�nts are availabie in the accovnt may nat he basecl on
<br />amoanls due for the martgage insurance premium.
<br />xl' the amounts held by .Lender far �scrow Items exceEd the amounta permitCed to be held by RESPA, Lender
<br />shall aacflunt to Borrowrr for tlxe eaKCa�ss funds as required by RFSPA. Tf ttu: amounCs of funds heId by Lender at at�,y
<br />lim� are n.ot saFFici�nt W pay the Escrow Items whean due, �.endec zn�y notify the Borrower And recauire Borrower to
<br />make ap �he shortage as perxz�iltod by R�SI'A.
<br />7"he Fsca�ow Funds are pl.edged as additional security for all sums se.cured by this Security Instrum.ent. If
<br />�orrower tenders to Lender the fa11 �aqment of alt such sums, Borrower's sc�eounC shalt be creditod with the balance
<br />remaining Eor all insta�lment it�s �aJ, (b), and (c) and any mortga�e insurance preinium insca�lrment tlaat Lender has
<br />nat become obligated to pay to che Secretary, arul Lender sha31 promptl.y refund any excess funds io �iorrower.
<br />Immedixte�y prior tv a forecic�sure ss�lle oi the Property or its aoqu9siEion by T.ender, Boreower's account shall be
<br />ccedited with any balanoe remaining for all installnr►ents far itans (�, (b), and (c).
<br />3. Applicat�ian oP Paymenta All payments under paragraphs 1 and 2 shall be applied by Lender as Eollows:
<br />�, to ttae morcgage insarane� premium ca be paid by Lend�r to ttxe Se�retary or Ca the mvnchly charge by the
<br />Secretary instead of the monthly morCgage insur�noe premium;
<br />5�nd, W any taxes, special ass�ssm�nts, lea�hold paymenCs or ground renis, and �re, flood and acher hazar.d
<br />insuran.ce prr,rniums, as requi�•ed;
<br />Third, tc► int�rese cfue und� the Iv��te;
<br />Fourth, t� amartizal�on of �he prinapal af I:he Note; and
<br />F��"fth, to late charges due undex the Note.
<br />4. �1i�re, �'lood and Other H�xerd Insurance. Borrower sfiall insure all impmvam�sn.ts on the Property, whether
<br />now in oxistence or sahseqpently erected, aga�nst any haxards, casua�ties, and c:ontingencies, inc[uding fire, for which
<br />Lend�,r roquires insuranc�. This insurance shall be maincain.ed in the amounts and for the p�riods thac i..ender
<br />re�uires. Borrvwer shall also insure ail improvements on the Pr.op�a'ty, whether now in existenoe or subsr�ucnCly
<br />�ed, against loss by ffoods tv the extent requiee�l by the Sectetary. All insurance shall be carried with cc�mpanies
<br />approved by Len.der. The insurance policies and any renewa.�s shall be held by Lender and shal.l, incl.ude loss �tyable
<br />clanses in favor of, and in a form acc�ptable to, Lender.
<br />in the event of Ioss, Borrnwer shali give L�ndc'r imr�liate notice by mail. Le.�d� may znake �rvof of lass if not
<br />xnade promptly by Borrower. Each insur;�noe cocnpany cancerned is hereby autharized and dirvcted to naake payment
<br />for such loss directly W Lender, instead of w�orrower and to Ler�der jvintiy. All oc any parC oP the insurance
<br />pcooeeds may be applied by Lender, at its opcion, either (a� to the reduct�pn of the inciebted�ess under the Note and
<br />this Seee�riey �nstruritent, firsl ta any delinc;uc;nt amounts applied in the order in paragraph 3, and then to prepaynnent
<br />of principat, pr (b) to the re5toraGion vr repau' of C1� dannaged Prnperty. Any application of th� proce.�ds tv the
<br />principal shall not �actend or postpnne t'he due date of the monthty payrnents whicM are referre�d to in paragraph 2, or
<br />change the am,aunc of such payments. Any excess insurance proceeds over an amount required tn pay sll outstanding
<br />indebtedness ut�der ti�e t�Cote artd this Security I�trument shall be paid ta the entity legaliy entilled theretp.
<br />In khe �vent oF foreclosure of this Secw'ity �nstrpment ar other transfer of title ta the Property thaC exfanguishas
<br />Cho izxdebterineas, all right, title and inkerest of Borrower in and to insurance policies in force shall pa.ss to tYaa
<br />purchasee.
<br />5. Occupancy, Preservation, Matntenutice and E�rotect[nn of thc Property, Borrower's Lu�un AppliGatfon;
<br />Leaseltolds, Horrower shall occupy, establish, a�td �e the Prop�rty aa ]3arrower's principa! reSidenCe within sixty
<br />days after Che e�cecution of this Securicy Instrumen,t (oc within sixty days oF a later sale or transfer of the Property)
<br />and shall co�itinue to occupq the Property as BorrowEr's principat resid�nce for aC l�xst one year after th� data of
<br />occt�ancy, unless Lender detei�ninos that reqvirement will �USe undue hardship far BorrUwer, or unless ext�uat:ing
<br />ciccurmstances exiat which are heyond Borrower's co�tral. Barrower aha11 nvtify Lender of any �cenuating
<br />circumstancas. Eorrower shall not oommit wast� or destroy, damage ar substantially change the Prop�Cy or allow the
<br />Property to deteriorater, reaspnabla wear �nd tear excepted. Lendex may inspect the Property if the Property is vacant
<br />nr abandoned or the loan is in default, Lerider rnay take reasonabl� activn to protect and pres�rve such vacant or
<br />88008BD084 � 8800680p84
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