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201103645
<br />Lender may, at any time, colle�t and hold amolmts for Escrow Items in an aggregate amount not to exceed the
<br />maximum amount that may be required for Borrowex's escrow acxount under the Real Estate Settleme�t Proce�ures
<br />Act of 1974, 12 U. S. C. Section 2601 et seq. and implementing regulations, 24 CFR Part 3500, as they may be
<br />amendefl from time to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated
<br />disbiu�sements or disbursemevts before the Borrower's paymea�ts ate available in the account may not be based on
<br />amounts due for the mortgage insurance premium.
<br />If the amounts held by Lender for Escrow Items exceed the amoimts permitted tu be held by RESPA, Lende�
<br />shall acxount to Borrower for the excess funds as require� by RESPA. If the amounts of funds held by Lender at any
<br />time are not sufficient to pay the Escrow Items when due, Lender may notify the Borrower and require Boirower to
<br />make up the shortage as permitted by RESPA.
<br />The Esarow Funds are pledged as additional security for all sums s�ured by this Se��rity Instnm�eent. If
<br />Borrower tenders to Lender the full payment of all such sums, Borrower' s account sl�ll be credited with the balance
<br />remaining for all installment items (a), (b), �d (c) and any mortgage insurance premium installment that Lender hes
<br />not become obligated to pay to the Secretazy, and Lender shall promptly refund any elccess fimds to Bonower.
<br />Immediately prior to a foreclosura sale of the Proparty ar its acquisition by Lender, Banower's account shall be
<br />c�edited with any balance remaining for all installments for items (a), (b), and (c).
<br />3. Application of Paymenta. All payments under garagraphs 1 and 2 shall be applied by Lender as follows:
<br />Firs to the mortgage ;nm„Y,rc� premium to be paid by Lender to the Secretary or to the monthly charge by tha
<br />Secretary instead of the monthly mortgage ins�urance premium;
<br />Secon to any taxes, special assessments, leasehold payments or ground re,nts, and fira, flood and other ba�ard
<br />insurance premiums, as re�uiretl;
<br />� to interest due under the Note;
<br />Fourt to amorti�,tion of the principal of the Note; and
<br />F� to late chazges due under the Note.
<br />4.1�Yre, Flood and Other Hazard Insnrance. Borrower aha11 insure all im�uovemenYs on the Property, whether
<br />now in existence or subsecluentlY erected, against anY hazazds, c�sualties, and contingencies, including fire, for wluch
<br />Lender requires insiu�nce. This insurance shall be maintainefl in the amounts and for the periods that Lendar
<br />requires. B�rower shall also insure all improvements on the Properly, whether now in existence or subsequentlY
<br />erected, against loss by floods to the extent required by the Secretary. All insurance shall be caaied with c�mpanies
<br />approve�i by Lender. Tha insurance policies and any renewals ahall be held by Lend�er and shall include loss payable
<br />clauses in favor o� and in a form acceptable to, Lende�.
<br />In the event of loss, Borrower shall give Lmder imme�iiate notice by mail. Lender may make proof of loss if not
<br />made Prompt1Y by Borrower. Each insurance company concerned is hereby authorized and dire�ted to make payment
<br />for such loss dire�tly to Lender, inste,ad of to Bonower 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 aay delinquent amow�ts applied in the order in paragraph 3, and then to PrePaYment
<br />of principal, or (b) to the restoration or repair of the damag� Properiy. Any applic�xion of the procc�ds to the
<br />princiPal shall not extend ar postpone the due date of the monthly payments which are referred to in pazagraph 2, or
<br />change the amount of such payments. Any excess insurance pr�s over an amount raquired to pay all outstanding
<br />indebtedness under the Note and this Se�urity Inst�ument sha11 be paid to the entity legally ea�titled thereto.
<br />In the eve,nt of fore�losure of this Se�urity Instrument or other transfer of title to tha Property that extinguishes
<br />the indebtainess, all right, title and interest of Borrower in and to insiu�ance policies in force shall pass to the
<br />purchaser.
<br />5. Occnpancy, Preaervalion, Maintenance and Protection of the Property; Borrower's Iman Application;
<br />Leaseholds. Borrower shall occupy, establish, and use the Properiy as Borrower' s principal residence within sixty
<br />days af�er the ex�ution 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 atter the date of
<br />occuPanCY. wnless I.ender determines that requirem+ent will cause undue hardship for Boaower, ar unless extenuating
<br />circumstances exist which are beyond Bonower' s controL Bonower shall notify Lender of any extenuating
<br />circumstances. Boaower shall not commit waste ar destroy, damage or substantially change the Property or allow the
<br />Property to deteriorate, reasonable wear and tear excepted L.ender 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
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