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�0�105343
<br />I,ender may, at any time, colle�t and hold announts for Escrow Items in an aggregate amount nat to eacc�d the
<br />maximum amount that may be require�i for Borrower' s eserow account under the Real Estate Settlement Procedures
<br />Act of 1974, 12 U.S.C. Se�tion 2601 et seq. and implementing regulations, 24 CFR Part 3500, as they may be
<br />amende� from time to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated
<br />disbursements or disbursements before the Borrower's payments are available in the account may not he baserl on
<br />amounts due for the mortgage insurance premium,
<br />If the amounts held by Lender far Escrow Items exceed the aznoimts perm�itted to be held by RESPA, Lender
<br />shall account to Borrower for the excess fimds as re�uirerl by RESPA. If the aznflunts of funds held by Lmder at any
<br />time are not sufficient to pay the Escrow Items when due, Lender may notify the Bonower and require Bonower to
<br />make up the shortage as permitted by RESPA.
<br />The Escrow Funds are pledged as additional security for all sums se�ured by this Se�urity Instrumen� If
<br />Bonower tenders to Lende� the full payment of all such sums, Borrower' s account shall be cre�iited. with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has
<br />not become �bligated to pay to the Se�retary, and Lender shall promptiy refund any excess funds to Borrower.
<br />Immediately prior to a for�losure sale of the Property or its acquisition by Lender, Bonowe�'s a«sount 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 sha11 be applied by I,ender as follows:
<br />Firs to the mortgage inm,n,nce premium to be paid by Lender to the Se�retary ar to the monthly charge by the
<br />Secretary instead of the monthly mortga.ge insurance premium;
<br />� to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<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. Fire, Flood and Other Hazard Insarance. Bonower shall insure all improvements on the Properiy, whether
<br />now in existence or subsequmtly ere,cted, against any bHZards, casualties, and contingencies, including fire, for which
<br />Lender require,s insuranca. This insurance shall be maintained in the amounts and for the periods that Lender
<br />requires. Borrower shall also insure all improvements on the Properiy, whether now in elustence or subsequently
<br />erected, against loss by floods to the extent require�i by the Secretary. All insurance shall be carri� with companies
<br />approved by Lender. The insurance golicies and any renewals sball be held by Lender and shall include loss payable
<br />clauses in favor o� 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 />made promptly by Borrower. Each insurance company concemed is hereby suthorizad and directed to make payment
<br />for such loss directly to Lender, instead of to Horrower and ta Lender jointly. All or any pazt of the ins�rance
<br />pra�eds may be applied by Lender, ax its option, either (a) to the refluction of the indebtedness under the Note and
<br />this Security Inst�ment, first to any delinquent amounts applierl in the order in p�h 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application of the prac�eds to the
<br />principal shall not extend or postpone the due date of the monthly payments which are refenefl to in parag�raph 2, or
<br />change the amount of such gayments. Any ea�cess insutance proce,eds over an amount requirefl to pay a11 outstanding
<br />indebtedness under the Note and this Se�uriiy Tn.ctrn,,,ent shall be paid to the entity legally entitlerl thereto.
<br />in the event of for�losure of this Se�urity Instrument or other transfer of title to the Property tbat extinguishes
<br />the indebtedness, all right, title and inter�t of Borrower in and to instu�ance policies in force shall pass to the
<br />purchaser.
<br />5. Occnpancy, Preservadon, Maintenance and Protection of the Property; Borrower's Loan Application;
<br />Leaseholds. Bonower shall occupy, establish, and use the Properiy as Borrower' s principal residence within sixty
<br />da.ys after the execution of this Security Instrum+ent (or within sixty days of a later sale or transfer of the Property)
<br />and ahall continue to occupy the Property as Borrower' s principal residence for at least one year after the date of
<br />occupancy, unless Lender determines that requiremet►t will cause undue hardship for Bonower, or unless extenuating
<br />circumstances exist which are beyond Borrower' s control. Borrower shall notify Lender of any extenuating
<br />circumstances. Bonower sha11 not commit waste or destroy, damage or substantially change the Property or allow the
<br />Pro�rty to deteriorate, reasonable weaz and teaz excepted. Lender may inspe�t the Properiy if the Properiy is vacant
<br />ar abandoned or the loan is in defaul� Lender may take reasonable acrion to prote.ct and preserve such vacant or
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