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20110790
<br />Le�der may, a4 any time, colleLt and hoYd amounts for Eserow Items in an aggregate amount not to excced the
<br />maximum amount that may be require�i for Borrower' s escrow account under the Real Estate Settlement Proc�ues
<br />Act of 1974, 12 U. S. C. Section 2601 et seq. and implementing regulations, 24 CFR Part 3500, as they may be
<br />a�mended from time to time ("RESPA"), elccept tbat the cushion or reserve permitted by RESPA for unanticipated
<br />disbursements or disbursements before the Bonower's payments are available in the account may not be basai on
<br />amounts due for Y1�e mortgage insurance premium.
<br />If the ainounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lende�
<br />shall acxount to Boa�ower for tha ea�cess funds as re�aired by RESPA. If the amounts of funds held by Lender at any
<br />time are not su�iicie�t to pay the Escrow Itemc when due, Lender may notify the Borrower and require Boirower to
<br />make up the shortage as penmitted by RESPA.
<br />The F.scrow Funds are pledged as additional se�urity for all sums se�ured by this Security Ins�ment If
<br />Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credite� with the balance
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premium installment that L�der has
<br />not be�ome obligated to pay to the Secretazy and r.�d� shall pron�tly refund any excess fuuds to Bosower•
<br />Immediately prior to a for�losure sale of the Prope�ty ar its acquisition by Lender, Borrower' s acxount shall be
<br />credited with auy balance remaining for all in.at�llmengg for ltetns (a) (b), and (c)•
<br />3m Application of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />Firs to the mortgage ;n�uance premium to be paid by Lender to the Secretary or to the monthly charge by the
<br />Secretaty instead of the monthly mortgage inc„rr�,ce premium;
<br />Secon to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br />insurance premiwns, as required;
<br />� to interest due under the Note;
<br />Fourt to amortization of the principal of the Note; and
<br />Fift to late charges due under the Note.
<br />4. �re, Flood and Other Hazard Insurancee Borrower shall insure all improvements on the Property, whether
<br />now in existence or subsequently erect�, against any ba�rds, casualties, and contingencies, including fire, for wluch
<br />Lender requu�es ;nc��,ce. This insurance shall be ;� A;ned in the amounts and for the periods that Lendea
<br />r�uires. Borrower shall also insure all improv�ts on the Property, whether now in existence ar subs�uently
<br />erected, against loss by floods to the extent require� by the Secretary. All insurance shall be carried with companies
<br />approved by Lender, The insurance policies and any renewals shall be held by Lender mid sha11 include loss payable
<br />clauses in favor o� aad in a form acceptable to, Lender.
<br />In the event of loss, Bonower shall give Le�der immediate notice by mail. Lender may make pa�oof of loss if not
<br />made promptly by Borrower. Each insurance co�oap�y concemed is hereby authorized and directefl to make payment
<br />for such loss rlire�tly to Lender, instead of to Borrower and to Lender jointly. All or �y part of the ins�uance
<br />procceds may be applied by I,ender, at its option, either (a) to the reducrion of the indebtedness under the Note and
<br />this Security instcument, first to any delinquent mnounts applied in the order in patagraph 3, and then to PrepaYment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any applicahon of the proceeds to the
<br />principal shall not �ctend or postpone the due date of the monthly payments which are refeaed to in pazagraph 2, or
<br />change the amount of such paymen�. Any excess insurance praceeds over an amount re�uire� to pay all outstanding
<br />indebtedness under the Note and this S�urity Instrument shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instciament or other transfer of title to the Property that eactinguishes
<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. Occnpancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Applicadon;
<br />Leaseholds. Borrower shall occupy, establish, and use the Properiy as Borrower's principal residence within sixt}'
<br />days after the execution of this Security Instnunent (or within sixty days of a later sale or transfer of the Progerly)
<br />and shall continue to occupy the Properiy as Bonower's principal residence for at least one yeaz after the date of
<br />occupancy, unless Lexider detennines that requirement will c�use undue hardship for Boirower, or unless extenuating
<br />circumstances exist which are beyond Borrower' s control. Bonower shall notify Lender of any extenuating
<br />circumstances. Bonower sha11 not commit waste or destroy, damage ar substantially change the Progerty or allow the
<br />Property to deteriarate, reasonable weaz and tear excepted. Lender may inspect the Property if the Property is vacant
<br />or abandoned or the loan is in default. Lender may 4ake reasonable action to protect and preserve such vacant or
<br />2200174269 D V ,//'��
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<br />VMP��.4N(NE) Ioao�l.o� Paee a�t s
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