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201101404
<br />Lender may, at any time, collect and hold amounts for Escrow Ttems in an aggregate amount not to exceed the
<br />maximum amount that may be required for Borrower's escrow account under the Bea1 Estate Settlement Procedures
<br />Act of 1974, 12 U.S.C. Section 2601 et seq. and implementing regulations, 24.CFR. Pa�rt 3500, as they may be
<br />amended from time io time ("RESPA"), except that the cushiaa or reserve perz�itted iiy 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 moftgage insurance premium. -
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be hetd by RESPA, Lender
<br />shall account to Borrower for the excess funds as required by RESPA. If the amounts of funds held by T,ender at any
<br />time aze not sufficient to pay the Escrow Items when due, Lender may noti,fy the Borrower and require Borrower to
<br />make up the shortage as permiited by RESPA.
<br />The Escrow Funds are �ledged as additional security for all sums secured by this Security [nstrument. If
<br />Borrower tenders ta Lender the full payment of all such sums, Borrower's account shall be credited with the balance
<br />remaining far all instaliment items (a), (b), as�d (c) and any mortgage insurance premium instaliment tltat Lender has
<br />not become obligated to pay to the Secretary, and Lender shall prompdy refund any excess funds to Bonower.
<br />Immediately prior to a foreelosure sale of the Property or its acquisition by Lender, Bonower's account shall be
<br />credited with any balance remaining for all installments for items (a), (b), and (c).
<br />3. AppEication of Payments. All payments under paragraphs 1 and 2 shall be appiied by Lender as follows:
<br />First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the
<br />Secretary instead of the manthly mortgage insurance premium;
<br />ec d, to any taxes, special assessments, leasehold payments or ground rents, and �re, flood and other hazard
<br />insurance premiums, as required;
<br />Third, to interest due under the Note;
<br />Fau , to amortization of the principal of the Note; and
<br />Fifth, to late charges due under the Mote.
<br />4. Fire, Flood and �ther Hazard Insurance. Borrower• shall insure all improve�ments on the Properiy whether
<br />now in existence or subsequently ere�ted, against any hazards, castxaliies, and contingencies, including �re, for which
<br />Lender requires insurance. Ttcis insurance shall be maintained in the amounts azcd for the periods chat Lender
<br />requires. Borrower shali also insure all improvements on the Property, whether now in existence or subsequendy
<br />erected, against loss by floods to the exient required by the Sectetary. All insurance shall be carried with companies
<br />approved by Lender. The insurance palicies and any renewals shall be held hy Lxnder and shall include loss payable
<br />ciauses in favoz of, and in a form acceptable to, Lender.
<br />ln the event of toss, Borrower shall give Lender immediate notic:e by mail. Lender may make proof of Ioss if not
<br />made promptly by Borrower. Each insurance campany concerned is hereby authorized and direc[ed to make payment
<br />for such loss directly to Lender, instead of ko Bonower and to Lender jointly. Ail or any part of the insurance
<br />proceeds rnay be applied by Lender, at its option, eithet (a} to the reducfion a� the indebtedness under the Note aua
<br />this Security Instrument, first to any deiinquent amounts applied in the order in pazagraph 3, and then to prepayment
<br />of prineipal, or {b) to the restoration or repair of the damaged Property. Any application of the proceeds to tlte
<br />principal shall not extend or postpone the dne date of the monthly payments which are referred to in paragraph 2, or
<br />chauge ihe amount of such payments. Any excess insurance proceeds over an amount required to pay all outstanding
<br />ic►debtedness under the Note and this Security Instru�ment shatl be paid to the entiry legally entitled thereta
<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes
<br />the indebtedness, all right, title and interest of Bonawer in and to insurance policies in force shall pass to the
<br />purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Apptication;
<br />Leaseholds. Borrawer shalt accupy, establish, and use the Propezty as Borrower's ptincipal residence within sixty
<br />days after the execution of this Security Insirumenc (or within sixty days of a later sale or uansfer 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 wiii eause unciue hardship for Borrower, or uniess extenuating
<br />circwmstances exist which aze beyond Borrower's control. Borrower shall notify Lender of any extenuating
<br />circumstances. Bonower shall not commit waste or destroy, damage or substantiatiy change the Property or allow the
<br />Property ta deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Property is vacant
<br />or abandoned or the ]oan is in default. Lender may take reasonable action to protect and preserve such vacant or
<br />� X1-01-000072
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