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2 0 �V�� r198
<br />Lender may, at any time, collect and hold amounts for Escr'ow Items in an aggregate amount not to exceed th�
<br />maximum amount that may be required for Sorrower's escrow account under the Real �state 5ettlement Procedures
<br />Act of 1974, 12 U. S. C. Section 2601. et seq. and implementing regulations, 2� CFR Part 3500, as they may be
<br />amended from time to time ("RESPA"), except that the cushion or reserve 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 far ihe mortgage insurance premrivaa.
<br />If the amounts held by Lender for Escrow Itetr�s exceed the arnounts permrttad to bc held by R�SPA, Lender
<br />shall account to Borrower for tk�e excess funds as requir� by RESPA. If the amounts of funds held by Lender at any
<br />time are not suf�cient to pay tha Escrow Items when due, Lender may n�trfy the Borrawer and require Borrowet' to
<br />make up the shortage as pernxitted by RESPA.
<br />The Escrow Funds are pledged as additional security for all sums secured by this Security Instewnent. If
<br />Sorrower tenders to Lender the full payment of all such surras, Borrower' s accouni shall be credited with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lendcr has
<br />not become obligated to pay to the Secretary, and Lender shall promptly refund at�y excess funds to Borrower.
<br />Trnmediately prior to a fareclosure sale of the Property or its acquisitian by Lender, Borrower's account shall be
<br />c�redited with any balance remaining for all installments for iterns (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 insuranca premium to be paid by Lender to the Secretary or to the monthly charge by the
<br />5eeretary instead of the manthly mortgage insuirance premrurn;
<br />Second, to any taxes, special assessmert�ts, leasehald payments or ground rents, and fire, flood and other hazard
<br />ir�surar►ce prernrums, as required;
<br />Third, to interest due under the Note;
<br />Fourth, to amartization of the principal of the Note; and
<br />Fitth, to late charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether
<br />now in existence or subsequently erected, against any hazards, casualties, and cantingencies, including fira, for which
<br />Lender requires insurance. Tk►rs insurance shall be maintained in the amounts and for the periods that Lender
<br />requires. Eorrower shall also insure all improvements on the Property, whether now in exrstence or subsequently
<br />erected, against loss by floods to tha extent r�uired by thc 5ecretary. All insurance shall be carried with cornpanies
<br />approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include loss payable
<br />clauses in favor of, and in a form acceptable to, Lender.
<br />In the event of Ioss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not
<br />made promptly by Borrower. Each insurance cornpany concerned is he�x'eby anthorized and directed to make payment
<br />for such loss directly to Lender, instead of to Horrower 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 order in paragraph 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds ta the
<br />principal shall not extend or postpone the due date oF the manthly payrnents which are referred to in paragraph 2, or
<br />change the amount of such payments. Any excess �nsurance proceeds over an arnaunt required to pay all outstanding
<br />indebtedness under the Note and this Se�urity Insh shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of tlais Se�urity instrument or other transfer of title ta the Property that extinguishes
<br />the indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the
<br />purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Barrower's Loan Application;
<br />Leaseholds. Borrawer shall occupy, �stablish, and use the Property as Borrower's principal residence within sixty
<br />days after the execution of this Security Inst�rrumezt,t (ar withan srxty days of a later sale or transfcr of the Property)
<br />and shall continue to occupy the Property as Borrower's principal residence for at least one year aft�r the date of
<br />occupancy, unless Lender determines that requirement will cause andue hardship for Borrower, or unless extenuating
<br />c�ircumstances exist which are beyond Borrower's control. Borrower shall notify Lendet' of any extenuating
<br />circurnstancas. Borrower shall not commit waste ax destroy, damage or substantrally change tha Property or allow the
<br />Property to deteriorate, reasonable wear atid tear excepted. Lender may inspect the Property if the Property is vacant
<br />or abandoned or the loan is in default. Lender may take reasonable action to protect and preserve such vacant or
<br />220009'7304 .� D V4NNE
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