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201104685
<br />Lender may, at any time, collect and hold amowits for F.serow Items in an aggregate amount not to exceed the
<br />maximum amount that may be required for Borrower' s escrow account under the Real Estata Settlement Pracedures
<br />Act of 1974, 12 U. S. C. Se�tion 2601 et seq. and implementing regulations, 24 CFR Patt 3500, as they may be
<br />am�nded from time to time ("RESPA"), elccept tbat the cushion or reserve permitted by RESPA for unanticipated
<br />disbursements or disbursements before the Borrower's payments aze available in the account may not t� besed on
<br />amounts due for the mortgage insurance premium.
<br />If the amounts held by Lender for E�row Items exc� the am+ounts permitted to be held by RESPA, I.e�►der
<br />sha11 acxount to Borrower for the excess fimds as required by RESPA. If the am�un� of fimds held by Lender at any
<br />time are not sufficient to pay the Escrow Items when due, Lendar may notify the Bonower and require Bonaw�r to
<br />make up the shartage as permitted by RESPA.
<br />The Escrow Funds are pledged as additional se�arity for all sums se�ured by this Security Ins�ment If
<br />Borrower tenders to Lender the full payment of all such sums, Bortower' s account shall be cre3ited with the balanca
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment thet Lender has
<br />not bacome obligated to pay to the Se�retary, and Lender shall promptly refund any excess funds to Boirower.
<br />Immediately prior to a for�los�ue sale of the Property ar 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. Applical3on of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />Firs to the m�rtgage insurance premium to be paid by Lender to the Secretary or to the monthly charge bY the
<br />Se�retary instead of the monthly mortgage insurance premium;
<br />� to any taxes, special assessments, le,asehold payments or ground rents, and fire, flood and other hazaz'd
<br />insurance premiums, as required;
<br />� to interest c�e under tha Note;
<br />Fourt to amorti7ation of the principal of the Note; and
<br />Fift to late chazges due under the Note.
<br />4. Fire, Flood and Other Hazard Insnrance. Borrower shall insure all improvements on the Prapeity, whether
<br />now in existence or subs�uently erected, against anY ba�ards, casualties, and contingencies, including fire, for wbich
<br />Lender requires insuranca. This insuranca shall be maintained in tbe amounts and for tha periods that Lender
<br />requires. Borrower shall also insure all improvements on the Property, whether now in existence or subseil��Y
<br />erected, against loss by floods to the extent require� by the Secretary. All insurance shall be c�rried with companies
<br />approveci by Lender. Tha insiu�ance policies and any renewals shall be held by Lender and shall includa lo� payable
<br />clauses in favor o� aad in a form acceptable to, Lender.
<br />In the event of loss, Bonower sha11 give I.ender immediate notice by mail. Le�der may make pr�f of loss if not
<br />� PT�Pt b3' Borrower. Each insurance company concemed is hereby authorizeii and dire�ted to make payment
<br />for such loss directly to Lender, instead of to Borrower and to Leader jointly. All or any pait of the ins�rance
<br />proceeds may be applied by Lender, at its option, either (a) to the refluctian of tha indebtedness under the Nots aa�d
<br />this Security Inshwment, 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 tha damaged Property. Any application of the procee�s to the
<br />principal shall not extend ar postpona tha dua date of tbe monthly payments which are referred to in paragraph 2, or
<br />chauge the a�nount of such payments. Any encess insurance proceeds over an amount re�uire� to pay all outstanding
<br />indebte�ness under the Note and this Se�urity Insh�unent shall be paid to the entity lega,lly entitled thereto.
<br />In the event of fore�losure of this Secarity Instrument or other transfer of titla to the Properiy that extinguishes
<br />the indebt�ness, all right, title and interest of Bouower in and to insurance policies in force shall pass to the
<br />purcheser.
<br />5. Occnpancy, Preservadon, Ma�tntenance and Protection of the Property; Borrower's Loan Applical3on;
<br />Leaseholds. Borrower shall occupy, establish, and use the Properiy as Bonower' s principal residence within sixty
<br />da.ys after the execution of this Security Instrument (or within silrty days of a later sale or transfer of the Property)
<br />aad shall continue to occupy tha Properiy as Borrowar' s principal residencx for at least one y�r after the date of
<br />�P�Y� unless Lender determines that requirement will c�use undue bazdship far Borrower, or unless extenuating
<br />circumstances exist which aze beyond Borrower' s c�nttol. Borrower sha11 notify Lender of any extenuating
<br />circamstances. Borrower sha11 not commit waste or destroy, damage or substantially change the Properiy ar allow the
<br />Properiy to deteriorate, reasonable weaz and tear excepted Lender may inspect the Properiy if the Progeriy is vac�nt
<br />ar abandoned or the loan is in defaul� Lender may take reasonable action to prot�t and preserva such vacant ar
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