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2�1102274
<br />Lender may, at any tirne, collect and hold ainow�ts for Escrow It�ms in an aggregate amount not to excsad the
<br />maximum amount that may be required for Bonower's escrow account under the Reat Estate Settlement Proc�dures
<br />Ad of 1974, 12 U.S.G Section 2601 et seq. and implementing regulations, 24 CFR Part 3S0(}, as they may be
<br />amended frona time to time ("RESPA"), except that We cusluoa or reserve permitted by RESPA for unanticipated
<br />disb�usements or disbursements before the Bonower's payments are available ii� the account may not be based on
<br />amounts due fot the mortgage inswance premium. . "
<br />If the amounts he�d by Lender for Escrow Items exc�ed the amounts permit�ed to be held by RESPA, Lender
<br />shall accaunt to Borrower for the exaess funds as required by R$SPA. If the amounts of fuads held by Lender at any
<br />time are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Bozrower to
<br />make up the shortage as permitted by RESPA.
<br />The Escrow Funds are pledged as additionat security for all sums securec� by this Security Insuument. If
<br />Bozrower tenders to Lender the full payment of ail such sums, Borrower's aocrount shall be cxedited with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premium instailment that Lender has
<br />not beaome obligated to pay to the Secretazy, and L.ender shall promptty refund aay excess funds ta Borrawer.
<br />Immediately priar to a fore�losure sale of the Property or its acx}uisition by Lender, Borrower's account shall be
<br />cxedited with any balance remsining for all instaliments for items (a), (b), and {c).
<br />3. Agplicatio� of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />Firs� to the mortgage insuranoe gremium to be paid by L.ender to the Secretary or to the monthly charge by the
<br />Secxetary insiead of the monthly mortgage inswanoe premium;
<br />5econd, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />insuranoe premiutns, as required;
<br />� to interest due under the Note;
<br />Fourth, to amortiration of the grincipa] of the Note; and
<br />Fi t to tate charges due under the Note.
<br />4. Fire, Flood and Other Ha7ard Insnrance. Bontower shall insure att imiprovements on the Property, whether
<br />now in existence or subsequently erected, against any hazards, casualties, and cantingencies, iacluding fire, for which
<br />Lender requires insurance. Tlus insutance shall be maintained in the atnounts and far the periods that I.ender
<br />requires. Borrower shall also insuxe all improvements on the Property, whether now in existence or subsequenttly
<br />erected, against loss by floods to the extent required by the Secretary. AII insurance sha11 be cacried with companies
<br />appraved by Lender. The insruanc#�policies and any renewals shall be held by I.ender and s6aI1'iaclude Iass payai�le
<br />clauses in favor of, and in a fnrm a�c:eptable to, Lender. .
<br />In the event flf loss, Borrower shall give Lender immediate notice by mai1. �nder may make proof of loss if not
<br />made promptly by Bonawer: F.ach insurance company concerned is hereby authurized and directed to make �yment
<br />for sucli loss directly to Lender, instead of to Borrower and to Lender jointty: t1ll or any pazt of the insnrance
<br />proceeds may be applied by Lender, at its option, either (a) to Yhe redurxion of the indebtedness under the Note and
<br />this Security Instrument, first to any delinqueat amounts applied in the order in pazagragh 3, and then to prepayment
<br />af principal, or (b) to the restoratian or repair of the damaged Property. Any application of the procceds to tt►e
<br />principal sha11 not extend or pastpone the due date of the manthly paymertts which are refened to in paragraph 2, or
<br />change the amount of such payments. Anq excess insurance proceeds over an amount required ta pay all outstanding
<br />indebtedaess under the Note and this Security Instrument shall be paid to the entity legally entitied thereto.
<br />In the event of fore�iosure of this Security Instrument or other transfer of titte to the Ptoperty [hat extinguis�hes
<br />the indebt�ness, all right, title and interest of Borrower in and ta insurance policies in force shali gass ta the
<br />purchaser.
<br />5. Oaa�Pai►c7, Prese�rvstion, Maintenance and Protection of the PraPertY; Bormwer's I.Qan Applicaiion;
<br />I�hoids. Borrower shall occupy, establish, and use the Property as Borrawer's principai residence within sixty
<br />days after the exeeutian of this Sec,vrity Instrument (or wi,thin sixry days of a later sale or transfer of the Property}
<br />and shall continue to oa-upy the Property as Borrower's principal residenoe for at least one year after the date of
<br />axupancy, unless Lender determines that requirement will cause undue hardshi.p for Borrawer, or unless extenuating
<br />circumstances exi,st which are beyoAd Borrower's control. Borrower shall notify I,endcr of a»y exte.muating
<br />cu'cmmstazx;es. Borrawer shall not commit waste or destroy, damage ar substantially change the Properry or allow the
<br />Property to deteriorate, reasonable wear and tear excepted. Lender may inspe�t the Praperty if the Property is vacant
<br />or abandoned or the loan is in default. Lender may take reasonable action to proted and preserve such vacant or
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