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�01108833 2. Monthly Payment of Taxes, Insurance and Other Charges. Bonower shall include in each montl�ly payment, together with the principal and interest as set forth in the Note and any late charges, a sum for (a) taxes and special assessments levied or ta be levied against the Property, (b) leasehold payments or ground rents on the Property, and (c) premiums for insurance required under paragraph 4. In any year in which the Lender must pay a mortgage insurance premium to the Secretary of Housing and Urban Development ("Secretary"), or in any year in which such premium would have been required if Lender still held the Security Instrument, each monthly payment shall also include either: (i) a sum for the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage insurance premium if this Security Instrument is held by the Secretary, in a reasonable amount to be determined by the Secretary. Except for the montWy charge by the Secretary, these items are called "Escrow Items" and the sums paid to Lender are called "Escrow Funds." Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the maximum amount that may be required for Borrower's escrow account under the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. Section 2601 et seq. and implementing regulations, 24 CFR Part 3500, as they may be amended from Hme to time ("RESPA"), except that the cushion or reserve permitted by RESPA for unanflcipated disbursements or disbursements before the Borrower's payments are available in the account may not be based on amounts due for the mortgage insurance premium. If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall account to Borrower for the excess funds as reqwired by RESPA. If the amounts of funds held by Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notify the Bonower and require Bonower to make up the shortage as permitted by RESPA. The Escrow Funds are pledged as addiflonal security for all sums secured by this Security Instrument. If Borrower tenders to Lender the full payment of all such sums, Borrower's account shall be credited with the balance rema;n;ng for all installment items (a), (b), and (c) and any mortgage insurance premium installment that Lender has not become obligated to pay to the Secretary, and Lender shall prompdy refund any excess funds to Bonower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be credited with any balance remaining for all installments for items (a) , (b) , and (c) . 3. Application of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows: First, to We mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by We Secretary instead of the monthly mortgage insurance premium; Second, to any taxes, special assessments, leasehold payments or ground rents, and &e, flood and other hazard insurance premiums, as required; Third, to interest due under the Note; Fourth, to amortization of the principal of the Note; and Fifth, to late charges due under the Note. 4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether now in existence or subsequently erected, against any hazards, casualHes, and contingencies, including t3re, for which Lender requu�es insurance. This insurance shall be maintained in the amounts and for the perlods that Lender requires. Borrower shall also insure all improvements on the Property, whether now in existence or subsequendy erected, against loss by floads to the extent required by the Secretary. All insurance shall be carried with companies approved by I.ender. The insurance policies and any renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to, Lender. 1004NNE 000687799958 11/21/2017 07:05am VM � gage WITH MERSNE Revised 4/98 Amendad 7l04 Wolters Kluwer Finencial Services VMP4N(N� 97105).00 Pa e3of70