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�01�04��3
<br />Lender may, at any time, colle�t and hold amounts for Escrow Items in an aggregate amount not to enc�ed tha
<br />maximum amount that may ba re�uired for Bonowe�' s escrow account under tha Real Estate Settlem�t Procedures
<br />Act of 1974, 12 U.S.C. Section 2601 et seq. and implementing regulations, 24 CFR Part 3500, as they may be
<br />amended from time to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated
<br />disbursernents or disbursements before the Borrower's payments ara availabla in the aa;ount may not be based on
<br />aznounts dua far the mortgage insivancx premium.
<br />If the amouuts held by L� for Escrow Itews exc�d the amoimts pennitted to be held by RESPA, L�der
<br />shall account to Bortower for the excess fuads as required by RESPA. If the amounts of funds held by Lender at �y
<br />time are not sufficient to pay the F.scrow Items when due, I�end� may notify the Borrower and requira Bonower to
<br />make up the shortage as permittefl by RESPA
<br />The Escrow Funds are pledg� as additional sacurity far a11 s�mns secared by this S�urity Instnm�t If
<br />Bonower tenders to Lender tha full payment of all such sums, Bonower's a«;ount shall ba credit� with the balance
<br />remaining for �ll �n. Atlme±±t ltems (a)� (b) and (c) and any mortgage insurauce premium �"�ttt lmen that Lender bas
<br />not becoma obligated to pay to the Secretaty, and Le�de� shall PI'omPt1Y refund any excess funds to Boaower.
<br />Immediately prior to a foreclosura sale of the Prop�ty or its acquisition by Lender, Boaower's account shall be
<br />credited with any balance remaining for all installments for items (�), (b), and (c)•
<br />3. Applicat3on of Paymenta All payments under paragraphs 1 and 2 shall be appliefl by Lender as follows:
<br />Firs to the anartgage insurance premium to he paid by Lender to the �retary or to the monthly cvazge by the
<br />Saretary instead of the monthly mortgage insiu�ance premium;
<br />Second to any tax�, special assessments, leasehold payments or graund rents, and fire, flood aad other ha�ard
<br />insurance premiums, as r�uired;
<br />� to interest due under the Note;
<br />Fourt to amortization of the principal of the Note; and
<br />F� to late chazges due under the Note.
<br />4. I+Yre, Flood and Other Hazard Insurance. Borrower shall insure all improvements on tha Properiy, wheth�
<br />now in existence ar subse�uentlY e�cted, against any hazards, c�sualties, and contingencie.s, including fire, for wltich
<br />Lender requires insurance. This insurance shall be maintained in the amoimts and for tha periods that I.end�
<br />requires. Borrower shall also insure a11 improvementa on the Paoperty, whether now in e�cistence or subse�uently
<br />erected, against loss by floods to tha extent required by the Secretary. All insuranc� sha11 be caaied with companies
<br />approved by Lender. The insurance �licies and aay renewals shall be held by Lender and shall includa loss payable
<br />clauses in favar o� and in a form acx,eptabla to, Lender.
<br />In the event of loss, Borrower sUall give Lender imme�iiata not�ca by mail. Lender may make proof of loss if not
<br />made PramPt1Y bY Borrower. Each insurance co��y concemed is hereby authorizad and directed to make PaYment
<br />for such loss directly to Lender, instead of to Bonower and to I.ender jointly. All or any part of tha insurance
<br />Pr� �Y � APPli� bY Lender, at its option, either (a) to the reduction of tha indebtedness under tha Note and
<br />this Security Insln�ment, first to any delinquent amou�ts appliad in the order in pmragraph 3, and then to grepayment
<br />of princiPal, or (b) to the r�storation or repair of tha damaged Property. Any applic�tion of tha proc;eeds to the
<br />princiPal shall not ext�d �r postpona the dua date of the monthlY payments which are rafe�rl to in garagraph 2, or
<br />chenge the amount of such payments. Any excess insuranca proc�ds over an amount required to pay all outstanding
<br />indebtedness under the Note and this Security Instcument shall be paid to the entity legally entitled thereto.
<br />In the event of fore�losure of this Security Instnmaent or other transfer of titla to tha Property that extinguishes
<br />the indebtedness, all right, title and interest of Boaower in and to insurance policies in force shall pass to the
<br />purchaser.
<br />5. Occapancy, Preservation, Maintenance and Proted3on of the Property; Borrower's Loan Applicat3on;
<br />Leaseholds. Boaower sl�all occuPY, establish, and use the Properiy as Borrower' s principal residence within sixty
<br />days after tha e�ecution of thia Security Instr�ment (ar within sixty days of a laler sale or transfer of tt►e Property)
<br />and shall continue to occupy the Property as Borrowar' s principal residence far at least one year after tha date of
<br />ocxuPancY� unless Lender deternnines tbat requirement will cause unc�e hardship for Borrower, or unless extenuating
<br />circumstances exist which are beyond Boa�ower' s conlroL Boaower sha11 notify Lender of any extenuating
<br />circumstances. Borrower shall not commit waste or destroy, damage or substantially chazige the Property or allow the
<br />Property to deteriorate, reasonable wear and teaz excepted. Lender may inspect the Property if the Properiy is vacant
<br />or abaadonad or the loan is in default. Lender may take reasonable action to protect and preserve such vac�nt or
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