Laserfiche WebLink
i <br />201143711 <br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender <br />shall account to Borrower for the excess funds as required by RESPA. ff the amounts of funds held by Lender at any <br />time are not suff'icient to pay the Escrow Items when due, Lender may notify the Borrower and require Borrower to <br />ma.ke up the shortage as permitted by RFSPA. <br />The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument. If <br />Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance <br />remaining for all installment items (a), (b}, and (c) and any mortgage insurdnce premium installment that Lender has <br />not become obligated to pay to the Secretary, and Lender shall prompfly refund any excess funds to Borrower. <br />Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be <br />credited with any balance remaining for all installments for 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 />First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the <br />Secretary instea.d of the monthly mortgage insurance premium; <br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard <br />;nc�ransp premiums, as required.; <br />Third to interest due under the Note; <br />Fourth, to amortization of the principal of the Note; and <br />Fifth, to late charges due under the Note. <br />4. Fire, Flood and Other Hazard I�nrance. Borrower shall insure all improvements on the Property, whether <br />now in existence or subsequently erected, against any hazazds, ca.sualties, and contingencies, including fire, for which <br />Lender requires insurance. This �nc shall be maintained in the amounts and for the periods that Lender <br />requires. Borrower shall also insure all improvements on the Property, whether now in existence or subsequently <br />erected, against loss by floods to the extent required by the Secretary. All insurance shall be carried with companies <br />approved by Lender. The insurance policies and airy 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 shall give Lender immediate notice by ma.il. Lender may make proof of loss if not <br />made prompfly by Borrower. Each insurance compatry concerned is hereby authorized and directed to make payment <br />for such loss direcfly to Lender, instead of to Borrower and to Lender jointly. All or any part of the �nc�ran� <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 to the <br />principal shall not extend or postpone the due date of the monthly payments which aze referred to in paragraph 2, or <br />change the amount of such payments. Any excess insurance proceeds over an amount 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 Instrument or other transfer of title to the Properly that extinguishes <br />the indebtedness, all right, ritle and interest of Borrower in and to insiu�ance policies in force shall pass to the <br />purchaser. <br />5. Occnpancy, Pr�ervation, Maintenance and Protection of the Property; Borrower's Loan Application; <br />Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal resicience within sixty <br />days after the exeeution of this Security Insirument (or within sixty days of a la.ter sale or transfer of the Progeriy) <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 tha.t requirement will cause undue hardship for Borrower, or unless e�enuating <br />circumstances exist which are beyond Borrower's control. Borrower shall notify Lender of any extenuating <br />circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Properiy or allow the <br />Properiy to deteriorate, reasonable wear 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 protecf and preserve such vacant or <br />�-4R(NE) �aeoi� Page 3 of B inwais: �� <br />�S'L7 - <br />