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<br />201049497
<br />Lender riaay, at any time, collect and hold amounts for Escrow Items in an aggregate amount noi to exceed the
<br />maximum amount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures
<br />Act of 1974, 12 U.S.C. Section 2601 et seg. and 'unplementing regulatians, 24 CFR Part 3500, as they may be
<br />amended from time to time ("RESPA" ), except that the cushion or z permitted by RESPA for unanticipated
<br />disbursements or disbursements before the Borrower's payments are available in the account may not be based on
<br />amounts due for the mortgage insurance premium.
<br />IF the amounts held by Lender for Escrow Items exceed the amount5 permitted to be held by RESPA, Lender
<br />shall account to Sorrower for the excess funds as required by RESPA. If the amounts of funds held by Lender at any
<br />time are not sufficient to pay the Escrow Items when due, Lender rnay notify the &�rrower and require Borrower to
<br />make up the shortage as pern�itted by RESPA.
<br />The Escrow Funds are pledged as additional security for all surns secured by this Security Instrument. If
<br />Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installtnent that Lender has
<br />not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to Borrower.
<br />Imnnediately prior ta a foreclosure sale of the Property ar its acquisition by Lender, Borrower's account shall be
<br />credited with any balance remaining for all installments 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 I,ender to the Secretary or to the monthly charge by the
<br />Secretary instead of the monthly mortgage insurance premium;
<br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fare, fload and other hazard
<br />insurance premiuxns, as required;
<br />Third, to interest due under the Note;
<br />Fourth to amortization of the principal of the Note; and
<br />�ifth, to late charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insurance. Borrower sha11 insure all improvements on the Praperty, whether
<br />now in existence or subsequently erecced, against any hazards, casualties, and contingencies, including fire, fpr which
<br />Lender requires insurance. T'his insurance shall be maintained in the amounts and for the periods that Lender
<br />requiz k3orrower shall also insure all improvements on the Property, whetlier now in existence or subsequently
<br />erected, against loss hy flooc3s to the extent required by the Secretary. All insurarace shall be cairied with companies
<br />approved by Lender. The insurance policies and any renewals shall be held by Lender and shal] 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 immediate notice by mail. Lender may make proof of loss if nat
<br />made promptly by Boz Each insurance company conce� is herehy authorized and directed to make payment
<br />fnr such loss diractly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance
<br />proceeds may 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 arder in paragraph 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application pf the prpcaeds to the
<br />principal shall not extend or postpone the due date of the monthly payments which are referred to in paragrapl� 2, or
<br />change the amount of such payxnents. Any excess insurance proceeds over an amount required to pay all outstanding
<br />indebtedness under the Note and this Security Instn�ment shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instrument ar ather transfer of title ta the Praperty that extinguishes
<br />the indebtedness, all right, title and interest of Borrower in and to insurance policies in force sha11 pass to the
<br />purck►aser.
<br />S. Occupancy, Preservation, Maintenance and Pratectian of the Property; Bnrrower' s Laan Application;
<br />Leaseholds. Barrower shall occupy, establish, and use the Property as Borrower's pz7incipal 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 far Borrower, or unless extenuating
<br />circumstances exist which are beyond Bozrower's control. Borrower shall noti Lender of an extenuating
<br />0451019798
<br />FHA Deed of Trust-NE � 4l96
<br />VMP � � / f1 VMP4R(N� (0809)
<br />Wolters Kluwer Financial Sarvices � Paga 3 of 9
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