|
�011074
<br />Lender may, at any time, colle�t m�d hold amounts for F.scrow Items in an aggregata �nount not to exc�d the
<br />maximum amount that may be require� for Bonower' s escrow a�xount under the Real Estate Settlement Proced�es
<br />Act of 1974, 12 U. S. C. Se�tian 2601 et seq. and implementing regulations, 24 CFR Part 3500, as the�► may be
<br />amended from time to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanticipated
<br />disbursements ar disb�ts before the Borrower's payments are available in the acxount may not ha base� on
<br />amounts due for the mortgage insurance premium.
<br />If the aznow�ts held by Lender for F.scrow Items excced the amounts pemnitted to be held by RESPA, Le,nder
<br />ahall account to Borrower far the excess fimds as require� by RESPA If the amoimts of funds held by Lender at any
<br />time are not sufficient to pay the Escrow Items when due, Lender may notify the Bonower and r�uire Boaower to
<br />xnake up the shortage as permitted by RESPA
<br />The Escrow Fimds are pledged as additionat security for all sums secured by this Securiiy Insbmm�ent- If
<br />Bonower tenders to Lende� the full payment of a11 such sim�s, Borrower' s account shall ba crediteri with tlie balence
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender bas
<br />not bec;ome obligatefl to pay to the S�r�tazy and Lender sha11 promptly refund any excess fwids to Borrower•
<br />Imane�iately prior to a fore�losure sale of the Property or its acquisition by Lender, Boirower' s a�xount shall be
<br />credited with any balance remaining for a11 i�t�lments for items (a), (b), and (c)•
<br />3. Application of Payments. All payments under pazagraphs 1 and 2 sball be applied by I.ender as follows:
<br />Firs to the mortgage ;nc,.,��„ce premium to be paid by Lender to the Secret�y ar to the monthly charge bY the
<br />Secretary instead of the m�nthly mortgage insurance premiumn;
<br />Secon to any taxes, spe,cial 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 amorkization of the principal of the Note; and
<br />Fi�ftt to late charges due under the Note.
<br />4. �re, Flood and Other Haz�rd Insurance. Borrower shall insure a11 improvements on the Properiy, whethe�
<br />now in existence ar subsequently ere,cted, against any ha�rds, casualties, and contingencies, including fire, for which
<br />Lender requires insurance. This insurance sha11 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 existence or subsequently
<br />erected, against loss by floods to the extent requirefl by the Sexretary. All insurance shall be ca�rried with companies
<br />approved by Lender. The insuranca policies and any renewals shall 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 sha11 give Lender imme�iate notice by mail. Lender may make proof of lass if not
<br />made promptly by Borrower. Each insurance company concerned is hereby authorize� and dire�i to make payment
<br />far such loss directly to Lender, instead of to Bonower and to Lender jointly. All or any part of the insurance
<br />proceeds may be applied by Lender, at its option, either (a) to the rerluction of tha indebtedness under the Note and
<br />this Se,curity Instrument, first to any delinquent amounts appliefl in the order in paragraph 3, and then to prepayment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any applicat�on of the proceeds to the
<br />principal shall not extend ar postpone the due date of the monthly payments which are refe�red to in paragraph 2, or
<br />chax►ge the aznount of such payments. Any excess insur�ce praceeds over an amount required to pay all outstanding
<br />indebtedness under the Note and this Se�urity Instrument sha11 be paid to the entity legally entitled thereto.
<br />In the event of for�losure of this Se�urity Instrument or other transfer of title to the Property that extinguishes
<br />the indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the
<br />purchaser.
<br />5. Occupancy, Preservadon, Mainten�nce and Protection of the Property; Borrower's Loan Applicat3on;
<br />Leaseholds. Borrower sball occupy, establish, and use the Property as Borrower's principal resideace within sixty
<br />days after the execution of this Security Instrument (or within svrty days of a later sale or transfer of the Property)
<br />and svall continue to occupy the Properiy as Bonowe�' s principal residence for at least one year after the date of
<br />occupancy, unless Lender determines that requirement will cause undue hardship for Borrower, or unless extenuatin8
<br />circumstances exist which are beyond Borrower' s control. Borrower sball notify I.ender of any extenuating
<br />circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Property or allow the
<br />Property to deteriorate, reasonable wear �d tear e�ccepted Lender may inspect the Property if the Properiy is vac�nt
<br />or abandone� ar the loan is in default. Lender may take reasonable action to protext and preserve such vacant or
<br />2200170874 V4NNE
<br />i
<br />VMPC�-4N(N� coao�l.o� Page3 of B
<br />
|