|
20110238�
<br />Lender may, at any time, collect and hold amounts for Escraw Items in an aggregate amount nat [o exceed the
<br />maximum amount that may be required for Borrower's escrow account un�er tha Real Estate Settlement Procedures
<br />Act of 1974, 12 U.S.C. Sechion 2601 et seq. and implementing regulations, 24 CFR Pazt 3500, as they may be
<br />amended from time to time ("RESPA"), except that the c�shion or reserve pemutted by RESPA for unanticipated
<br />disbursements or disbursements before the $orrower's payments aze avaiIable in the account may not be based on
<br />aznounts due for the mortgage insurance premium.
<br />If the amounts held by L,ender for Escrow Items exceed the' amounts permitted to be held by ItE5PA, Lender
<br />shall account to Bonower fvr 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 notify the Borrower and require Borrower to
<br />make up the shortage as permitted by RESPA.
<br />The Escrow Funds aze pledged as additaonal security for all sums secured by this Security �nstrument If
<br />Barrower tenders to Lender the full payment of aIl such sums, Bonower's account shail be credited with the batanoe
<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 Sacxetary, and Lender shall pramptly refund any excess funds to Honowet.
<br />Immediately prior ta a foreciosure sale of the Property or its acquisition by Lender, Borrowar's aocount shall be
<br />credited with any balance remainiag for aIl installments €or 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 />Farst. 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 />S�ond. to anY taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />insurance p�remiums, as required;
<br />ird, to interest due under the Note;
<br />Four to amortization of the principal of the Note; and
<br />Fifth. to late charges due under the Nate.
<br />4. I�ire, Flood and Other Hazard Insnrance. Borrower shali insure all improveme»ts on the Property, whether
<br />now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which
<br />I.ender requires insurance. This insurance shaal be maintained in the amounts and far the periods that Lender
<br />requires. Borrower shall also insure all improvements on the Property, whether, now in existence or subsequently
<br />erected, ag�inst loss by floods to the extent required by the Secretazy. All insurancx shall be cstried wi#h companies
<br />approved by Lender. The insurance palicies 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 loss, Borrower shaIl give Lender immediate notice by mail. Lender may make proof of loss if not
<br />made promptly by Borrower. Each insurance company concemed is hereby suthorized and directed to make payment
<br />for s� loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance
<br />proc.eeds may be apglied by Lender, at its option, ezther (a) to the reductiou of the indebtedness under the Note and
<br />this Security Instrument, first to any delinqnent amounts applied in the ordez in paragraph 3, and then W prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds to the
<br />principal shatl not extend or postpone the due date of the monthly payments which are ceferred to in paragraph 2, or
<br />change the amount of such payments. Any excess insura�e proceeds over an amouat required to pay all outstanding
<br />indebtedness under the Note and this Security Instrument shall be' paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instruu�ent oz other transfez of title to the Property ihaE extinguishes
<br />the indebtedness, alI right, title and interest of Bozrower in and to insurance policies in force shall pass to 'the
<br />purchaser.
<br />5. Occupancy, Pn�scrvation, Maintenance aind Protection of We Property; Borrower's Loan AppficAtion;
<br />Leasehotds. Borrower shall occupy, establish, and use the Property as $orrower's prrncipal 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 />ocarpancy, unless Lznder determ�ines that require�ment wi11 cause undue hazdship for Borrower, or unless extenuating
<br />circ�mstances exist which aze beyond Borrower's �ntrol. Borrower shall noEify Lender of any extenuating
<br />aircumstan�ces. Borrower shall not commit waste or destroy, damage or substantialty change the Property or allow the
<br />Property to deteriorate, reasonable weaz and 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 prote�t and preserve such vacant flr
<br />�-4N(Nq �oao�) Page 3 of 8
<br />� ��-o2-ooao3i
<br />Initida:--�
<br />
|