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201104000
<br />If the amounts held by Lender for Escrow Items exceed the amounts pecmitted to be held by RESPA, Len�der
<br />shall accouat to Borrowei for the sxcess ftmds as required by RESPA. If the amormts of fimds held by Lender at auq
<br />time are not sufficient to pay the Escrow Items whea due, Lender may notify the $oxxawer and xequire Borrc�wex to
<br />make up the skartage a.s peimitted by RESPA
<br />The Escrow �r,uds are ple.dged as additioaal se,�uriiy for all sums sec�ucd by tbis Security Insttvment. If
<br />Boirawer tendiers to Lender the fult payment af all euch s�s, Borrower's account shall be credited with the balauce
<br />remaindng for all insl�llment items (a), (b}, and (c) and any mortgaga insunace pxem�ium installment that Lender bas
<br />not become obIigated fo pay ta the Secretary, and Lender shall promptly refiin.d auy excess fimds to Bonrower.
<br />Immedialely prior to a foreclos�use sale of the Properiy or iis acquisition by Lender, Borrower's accounf shall be
<br />credit�d cvith any balance rema.iaiag for all installments for items (a), (b), and (c}.
<br />3. Applicat3on o� Yayanenis. All payments uader paragtaphs 1 aad 2 ahall be applied by Lendez as £ollows:
<br />First, to the mortgage iasuraace premium to be paid bq Lendex to the Secretary oz to #he monthly c]�arge by the
<br />Secretary instead of tfie montbly mortgage ins�uanoe pzemium;
<br />Se,con ta any taxes, special assessments, leasehold paytnents or ground rents, an.d fire, flaod and other hazard
<br />ineurance gremiumas, as required;
<br />'Third, to iaterest due uader the Note;
<br />Fotuth, to amorti�lion of the principal of tlte Note; and
<br />Fif�h, to late charges dne uad�r the Note.
<br />4. Fire, Flood and Ottter Hazard Inswrance� Borrowez sha11 insure all improvements on tlie Property, whether
<br />now in existence or snbsequently �rected, against any haxazds, casual.ties, and contiagencies, includin.g fire, For wlaich
<br />Leader requiz�es insurance. This insUran,oe shall be aiaintained in the amouats and far tb.e periods that Lender
<br />req,uir�s. �orrawez s�iall also insittxe all improvements on the Froperty, whether now in existence or subsequeatly
<br />er�ted, against loss by floods to the sxtent required by the Secretary. All insurance shall be caaied with companies
<br />appxoved by Lender. The insuiance palicies and any rene�vala shall be held by Lender and sha11 include loss payable
<br />clause,v in favor of, and in a fozn�t acceptable to, Lender.
<br />In. the event of loss, Borrower sbslt give Lender immediate aotice by mail. Lender may make pxoof of lass if not
<br />made promptly by Bartower. Each �n��+*+ce compaay concerned is hereby antharized and directed to make pay,ment
<br />for auch loss directly to Lender, 'vastead of to Borrower aad to Lender jointly. All oz any paxt of tha ++*�+TM�*+ce
<br />proceeds may be applied by Lender, at its optioa, either (a) to the reduction of the iadebtedness imder the Note and
<br />this Secvsity l�ns�rument, fust to any delinquent amau�ts applied in tfie order in paragraph 3, and fhen fo prepayment
<br />of pzincipal, or (b) to the restoratirnn or repair o£ the damabecl PtoP�Y- �Y aPPlication of the pmceeds to tb.e
<br />prittcipal s1�a1I not exttend or posipone tlie dua data of the montl�ly payments which are refeared to in, pazagraph 2, or
<br />cl�an,ge the amount of such payments. Any excess in�!r.�„ce proceeds over a�a amount required to pay all ou.tstanding
<br />indelitedness uader the Note and thas S�urity Insirument shall be paid to the entity legally entitied thereta.
<br />In the event of faseclosure of this Securify Inst�vment or other hansfer of title to the Property that extinguishes
<br />the �indebtednese, all rigbt, title sud intterest of Boaower in and to insurauce policies in forca ehall pass to the
<br />purcl�aser.
<br />S. Occu�rancy, Preservation, Maintenance and Protection of tixe Property; Sorrower's Loan Applic.ation;
<br />Lea�eliolds. Bonower shall occuPY, estahlish, and use tlte Property as Borrower's principal residence within sixty
<br />days aafter the exe.�u�ioa of t,�uuis Secsuity Inshv,ment (o�c withia sixty days of a la#er sale or tra.nsfer of the Property)
<br />aad sball continue ta occupy t$e Property as $oaower's principal residence for at Ieast one yeat after the dafie of
<br />occugancy, �mlesa Leader detenmi.ines that requirement will canse undue �ardship for Sarrawer, oz ualess exctenuating
<br />circumstances exist which are beyond Bormwer's control. Borrower shall notify Lender of aay extenuating
<br />circuna5t�nc�, Borrowez ahall not commuit waste or destray, daraage oz substantially change the Property or allow the
<br />Progerty to deteriarata, reasonable wear and tesr excepted. �.ender maq inspect ttie Property if the Prope�ty is vacant
<br />or abandoned or the loan is ia default. Len.der maq take reasonable action to prote�ct and pr�erve such vacant ar
<br />�f1�IM�""r�� (a�) Pege 3 of 8 InitiaLVY� ��
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