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2 0110814�
<br />Lender may, at any time, colle�t and hold ainounts foz Escrow Items in an aggregate annaunt not to exc�d the
<br />maxia�.ma �unt that may be required for Bonower's escrow account under the Real Estata Settlemeat Procedures
<br />Act of 1974, 12 iT. S. C. Section 2601 et seq. and °unplementing regulations, 24 CFR Part 3500, as they may be
<br />amended froffi time to time ("RESPA"), except that tha cushion or re.serve petmitted by RESPA for unanticipated
<br />disbursements or disbursements before the Bo�ow�r°s payments ara available in the accounY may not ba based on
<br />ax�ounts due for tl�e mortgage insuraYace premiume
<br />If the amounts held by Lender for Escrow Items exceed the am�unts permitted to be held by RESPA, I.ender
<br />shall accoun4 to Borrower for the excess fimds as reyuired by RESPA. If the am,oimts of fimds held by Lender at any
<br />time are not sufficient to pay the Escrow Iteans when due, Lender may notify the Boaower and require Bo�rower to
<br />matie up the shortage as permitted by RESPA.
<br />The Escrow �'unds are pledged as addit�onal security for all sums seeuee� by this Sacurity Instcume,nt If
<br />Bonower tenders to Lender the full payment of all such sums, Boirower' s acc�unt shall be credite� with the balance
<br />remnining for all ingt�lmen items (a), (b) �d (c) �d any mortgage ina�Yrarce pr�� in.at�, imen that Lp�ncier has
<br />not b�ome obligated to pay to tha Se�re�y, and Lender shall PI'omPttY xefund any excess funds to Banower.
<br />Im�xiediately prior to a for�losure sale of the Property or its acquisition by Lender, Bouower's account shall be
<br />credited with any balance remaining for all installments for ite�ns (a), (b), and (c).
<br />3. Applicai�on of Paymenta. All gayments under paragraphs 1 and 2 shall be appliai by Lender as follows:
<br />Firs to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthiY abarge bY the
<br />S�retary instead of the monthly mortgage ins�u�ance
<br />�econ to any taxes, special asses,s�ents, leaseh� ol�d pa�yments or ground rents, and fire, flood and other hazard
<br />insurance premiums, as required;
<br />� to interest due under the Note;
<br />Fourt to ainortization of the principal of the Note; and
<br />Fi to late charges due under the Note.
<br />4s Fire, Flood and Other Hazard Insurance, Borrower shall insure all improvements on the Property, whetb.e2
<br />now in existence or subseiNent1Y erect� a�ainsg anY hazards, casualties, and contyngencies, including fire, for which
<br />Lender reqiaires insurance. This insurazrce shail be maintainer�. in the amounts and for the periods that Lender
<br />requireso Borrower shall also insure all amprovements on the Properiy, whether now in exiatence or subsecN��Y
<br />erected, against loss by floods to the extent requireri by the Secretary. All insurance sball be cauied with cx�mpanies
<br />approved by I,eader. The insurance policies and any renewals shall be held by Lender and shall include loss gayable
<br />clauses �n faeor o� and in a form acceptable 40, Lender.
<br />In the �ent of loss, Borrower sl�all giwe Lender immediate notice by mail. I.e�der may make proof of loss if not
<br />a�de pro�nptlY by Borrower. Each insurance s:oxnpazry concerned is hereby authoiizeri and directe� to make payment
<br />for such loss directly to Lender, instead of to Bonower and to Lender jointly. All or any part of the insurauce
<br />praceeds may be applied by Lender, at its option, either (a) to the rerluction of the indebtedness under the Note and
<br />tiris Security 7nskmm�ent, first to any delinquent amounts applied in the order in paragraph 3, and then to PreP$Yment
<br />of principal, or (b) to the restoration or repair of the damaged Property. Any application of the proceeds to the
<br />principal shall not ea�tend or postpone the due date of the monthiy payments `yhich are refened ta in paragraph 2, or
<br />cl�ange the amount of such payments. Any excess insurance praceeds over an �nount requirefl to pay all outstanding
<br />indebtedness under the Note and this Security Instrument shall be paid to tha entity legally entitled thereto.
<br />In th� 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 Boirower in and to insurance policies in force shall pass to the
<br />purchaser.
<br />5. Occupancy, Preservai3on, Maintenance and Protecdon of the Prnperty; Borrower's Lo�n Appl�ration;
<br />Y,easeholds. Bonower shall occupy, establish, aad use the Prop�rty as Borrower's principal residence within sixty
<br />days af� the ea�ecution of this Se�urity Instrument (or within sixty days of a later sale ar transfer of the Property)
<br />ai�►d shall continue to occupy the Properiy as Borrower' s principal residence far at least one year after the data of
<br />ocxuPancy', unless Lender determines that requirement will cause undue hardship for Borrower, or unless extenuating
<br />circumstaaces exist which are beyond Baaower's controL Borrower shall notify Lender of any �uating
<br />circumstances. Boirower shall not commit waste ar destroy, dama,ge or substantially changa the Properl,y or allow the
<br />Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property i£ tha Property is vacm►t
<br />or ab�do�ed or the loan is in default. Lender may take reasonable action to protect and preseive such vac�ant or
<br />2200183491 D V4NNE
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<br />VMP��N(NF� coao��.o� Pege 3 of 8
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