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201104071
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<br />� Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the
<br />" um amount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures
<br />Act' f 1974, 12 U.S.C. S�tion 2601 et seq. and implementing regulations, 24 CFR Part 3500, as they may be
<br />am ded from time to time ("RESPA"), except that the cushion or reserve pernutted by RESPA for unanticipated
<br />dis sements or disbursements before the Borrower's payments aze available in the account may not be based on
<br />am , ts due for the mortgage insurance premium.
<br />'� �f the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender
<br />account to Bonower for the excess fiunds as required by RE5PA. If the amounts of funds held by Lender at any
<br />tim � are not sufficient to pay the Escrow Items when due, I.ender may notify the Borrower and require Borrower to
<br />up the shortage as permitted by RESPA.
<br />I The Escrow Funds aze pledged as addirional security for all sums s�ured by this Security Instrument. If
<br />Bo wer tenders to Lender the fu11 payment of all such sums, Borrower's account shall be crediteti with the balance
<br />re '' g for all installment items (a), (b), and (c) and any mortgage insurance premium i�ta�lme►_�r that Lender has
<br />not I ecome obligat� to pay to the Secretary, and L,ender shall promptly refund any excess funds to Borrower.
<br />iately prior to a for�losure sale of the Property or its acquisition by Lender, Borrower's ac�ount shall be
<br />er ted with any baiance r�aining for all installments for items (a), (b), and (c).
<br />' 3. Application of Payments. All payments under paragraphs 1 and 2 shall be appliefl by L,Bnder as follows:
<br />' First, to the mortgage insurance premium to be paid by I.ender to the S�retary or to the monthly charge by the
<br />Sec , tary instead of the monthly mortgage �nc��rance premium;
<br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />ins ance 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 chazges due under the Note.
<br />, 4. F'ire, Flood and Other Hazard Insurance. Bonower shall insure all improvements on the Property, whether
<br />no in existence or subsequently ere�ted, against any hazatds, casualties, and contingencies, including fire, for which
<br />Le ' er requires insurance. This insurance shall be maintained in the aznounts and for the periods that Lender
<br />req es. Borrower shall also insure all improvements on the Properiy, whether now in existenc� or subsequently
<br />er ed, against loss by floods to the extent required by the Secretary. All insurance shall be carriefl with companies
<br />app ved by Lender. The insurance policies and any renewals sha11 be held by Lender and shall include loss payable
<br />cla es in favor of, and in a form acceptable to, Lender.
<br />' In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not
<br />ma promptly by Bonower. Each insurance company concerned is hereby authorized and directed to make payment
<br />for I uch loss dir�tly to Lender, instead of to Bonower and to Lender jointly. All or any part of the insurance
<br />pro ,, may be applied by Lender, at its oprion, either (a) to the reduction of the indebtedness under the Note and
<br />thi ' ecurity Insmiment, first to any delinquent amounts applied in the order in paragraph 3, and then to prepayment
<br />of ' cipal, or (b) to the restoration or repair of the damaged Properiy. Any application of the proceeds to the
<br />p' ipal shall not extend or postpone the due date of the monthly payments which are refenefl to in paragraph 2, or
<br />ge the amount of such payments. Any excess insurance proceeds over an amount required to pay all outstanding
<br />ind tedness under the No�te and this S�urity Instrument shall be paid to the e�tity iegally entitled thereto.
<br />' In the evetrt of fo�lasure of this Security Instrument or other transfer of title to the Property that extinguishes
<br />the I debtedness, all right, ritle and interest of Bonower in and to insurance policies in force shall pa� to the
<br />Y ... .,.�.,..
<br />5. Occupancy, Prese�vation, Maintenance and Prot�tion of the Property; Borrower's Loan Agplication;
<br />alds. Bonower shall occupy, establish, and use the Property as Borrower's principal residence within sixty
<br />da � after the exe,cution of this Security Instn�ment (or within sixty days of a later sale or lxansfer of the Property)
<br />an ! shall continue to occupy the Properiy as Bonower's principal residence for at least one year after the date of
<br />occ' pancy, unless Lender determines that requirement will cause undue hazdship for Bonower, or unless extenuating
<br />cir ' tances exist which aze be ond Bonower's control. Borrower shall nori Lender of an emenuatin
<br />FHA �ed of Trust-NE
<br />VMP
<br />Wolt a Kluwer Financial Services
<br />4/98
<br />VMP4R(NE) (0809)
<br />Page 3 of 9
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