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201009�2�
<br />I,ender ►nay, at any time, callect and hald amounts for Escrow Items in an aggr�gate amount nat to exceed thc
<br />maximum amount that may be required For B�rrawer's escrow accnuni under the Real Estate Settlement Procedures
<br />Act of 197�4, 12 U.S.C. Section 2601 et .req. and implementing regulations, 24 CFR Part 3500, as they may be
<br />amended from time ta time ("R�SPA"), except that the cushion or reserve permitted by RESPA for unanticipated
<br />disbursements or disbursemcnts before the Borrawer's payments are available in the account may not be based on
<br />amounts due for the morigage insurance premium.
<br />If thc amounts held by Lender for �scrow Items exceed thc amounts permitted ta be held by RESPA, C.ender
<br />shall account to Borrawer For the excess funds as rcquired by RESPA. If the amounis of funds held by L,ender at any
<br />time are not sufficient to pay the Escrow Ttems when due, Lender may notify the Borrower and require Borrower to
<br />makc up the shortage as permitted by RESPA.
<br />('lhe Escraw Funds are pledged as additional security far all sums secured by this Security Instrument. Cf
<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 installment that Lender has
<br />not become obligated to pay to the Secretary, and l.ender shall promptly refund any excess funds ta Barrower.
<br />Immediately prior to a f'areclasure sale of the Aroperty or its acquisition by Lender, i3orrower's accaunt shall be
<br />credited with any balance remaining for all installments ftar 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 mart�a�c insurance premium to be paid by Laender ta the Secretary or ta the monthly charge by the
<br />Secretary instead of the monthly mortgage insurance premium;
<br />Second, to any taxes, special assessments, leasehold payments ar graund rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />Third, to interest due under the Noce;
<br />�ourth, to amortization of the principal of the Nate; and
<br />Fifth, to late charges due under the Note,
<br />4. F'ire, Flaod and Other Hazard Insurance. Barrawer shall insure all improvements on the Froperty, whether
<br />now in cxistence or subsequently erected, a�ainst any hazards, casualties, and contin�encias, including firc, for which
<br />C,ender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender
<br />requires, Barrower shall also insure all improvements on the Praperty, whether now in sxistenca or subsequently
<br />erected, against lass by floods to the extent required by the Secretary. All insurance shall be carried with companies
<br />approved by Lender. "Che insurance policies and any renewals shall be held hy Lender and shall include loss payable
<br />clauses in favar af; and in a form acceptablc to, Lender.
<br />In the event of loss, Borrower shall give I,ender immediate notice by mail. Lender may make proof of loss if' not
<br />made promptly by Barrower. Each insurance company concerncd is herehy authorized and directed to make payment
<br />for such loss directly to Lender, instead of to Barrower and to Lender jointly. All ar any part of the insurancc
<br />proceeds may be applied by Lender, at its option, either (a) to the reduction of thc indebtedness under the Note and
<br />this Security Instrument, first ta any delinquent amaunts applied in the arder in paragraph 3, and then to prepayment
<br />of principal, or (b) to thc restoration ar repair of the damaged Property. Any application af the praceeds to the
<br />principal shall nat extend or postpone the due date of the monthly payments which are referred to in para�raph 2, or
<br />change the amount of such payments. Any excess insurance proceeds over an amount required to pay all outstanding
<br />indebtedness under the Nate and this Security Instrument shall be paid to the entity lagally entitled thcreto.
<br />Tn the event of foreclosure af chis Security Instrurnent or other transfer of title ta the Property that extinguishes
<br />the indebtedness, all right, title and inter�st of Harrower in and to insurance policies in forca shal] pa.ss ta the
<br />purchaser.
<br />_5. Occupancy, Preservation, Maintenance and Protection of the Praperty; �orrower's Loan Application;
<br />Leasehalds. Borrower shall occupy, establish, and use the Property as Borrower's principa] residence wichin sixty
<br />days after the executian of this Security Instrument (or within sixty days of a later sale or transfer af the Property)
<br />and shall continue to occupy the Praperty as Borrower' s principal residence f'or at least one year after the date af
<br />accupancy, unless Lendcr decermines that rcquirement will cause undu� hardship for Sorrower, or unless extenuating
<br />circumstances exist which are beyond Borrower's control. Borrower shal] notify Lender of any cxtenuating
<br />circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Praperty or allow the
<br />Aroperty to deteriorate, reasonable wear and tear excepted. Lcnder may inspect the Property if thc Prop�rty is vacant
<br />or abandoned or the loan is in default. Lender may take reasonable action ta pratect and preserve such vacant or
<br />7.951p16745
<br />In�diels, � � • C •
<br />VMP�•4N(NE)�oao�>.ai Pege3o18 �'"' /'
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