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201200928
<br /> TOGETF�R WITH all the improvements now or hereafter erected on the property, and all
<br /> easements, appurtenances, and fixtures now or hereafter a part af the properiy. All replacements and
<br /> additions shall also be covered by this Security Instrument.All oF the foregoing is refeired to in this Security
<br /> Instrument as the "Property". Borrower understands and agrees that MERS holds only legal title to the
<br /> interests granted by Borrower in this Security Instrument but,if necessary to comply with la�v or custom,
<br /> MERS(ns nominee far Lender flnd Lender's succeasors 1nd assigns)has the right:to exercise any or all of
<br /> those interests, including,but not limited to,the right to foreclose and sell the Property; and to t�nke any
<br /> act�on required of Lender induding,but not limited to,releasing or canceling this Security In,etrumenY..
<br /> BORROWEK COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and
<br /> has the right to grant and oonvey the Property and that the Properly is unencumbered, except for
<br /> encumbrances of record. Borrower warrants az�d will defeud geneially flie title to the Property against a11
<br /> clauiis and demands,subject to anv encuinbrances of record.
<br /> TIIIS SECLIZITY INSTRU1bSENT combines uniform covenants for national use and non-uniform
<br /> covcnants with limitcd variations by jurisdiction to constitutc a uniform security inshument covering real
<br /> property.
<br /> Sorrower and Lender covenant and agree as fbllows_
<br /> UNll�O1tM COVENAN'1'S.
<br /> 1.Paymcut of Principal,Interest and Late Charge.Borrower shall pay when due the principal of,
<br /> uid inte��est on,tlie debt evidenced by the Note and late charges due nnder the Note.
<br /> 2.Monthly Payment of Taxes,Insurance,and Other Charges. Borrower shall include in each
<br /> monthly payment,together with the principal and interest as set forth in the Note and any late charges,a sum
<br /> for(a)taYes and speeial assessments levied ar to be levied against the Properry,(b)leasehold payments or
<br /> ground rents on the Property,�nd (c)prenuums for iusurance required under Paragraph 4. In any ycar in
<br /> which the Lender must pay a mortgage insurance premium to the Secretary of Housing and Urb1n
<br /> Development("Secretary"),or in any year in which such premium wou1d have been required if Lendzr sti11
<br /> held the Security Instrument, each monthly payment sha11 also inelude eiiher: (i) a sum for the annual
<br /> inortga�e insurancc prcmium to bc paid Uy Leuder to the Secretary,or(ii)a mouthly charge instead of a
<br /> mortgage insurance premium if this Security Instnunent is held by the Secretary,in a reasonablc amouut to
<br /> be determined by the Secretary. Except for the monthly charge by the Secretary, these items are ealled
<br /> "Escrow ltems"and lhe sums paid to Lender are called"Escrow Funds."
<br /> Lender may,at eury time,collecY aud hold amouuts for Eserow Items in an aggregate amount not to
<br /> exceed the uk�iinum amomit that m1y be required for Borrower's escrow accomit tmder the Rcal Eslate
<br /> Settlement Procedures Act of 1974, 12 U.S.C. § 2601 et sea. and implementing regulations, 24 CFR Part
<br /> 35Q0,as they may be amended from time to time("RESPA"),except that the cushion or reserve permitted by
<br /> RESPA Lor unanticipated disbursements or disbursements before the Borrowe�'s payments are availahle in
<br /> the lccount may not be based on amoimts due for the mortgage insurance prcmium.
<br /> If the amounts held by Lender for Escrow Items exceed the amounts permitted to bc hcld by
<br /> RESPA,Lender shall account to Borrower for the excess fiinds as reQuired by RESPA. If the amounts of
<br /> funds held by Lender at auy time are not sufficient to pay the Escrow ltems cvhen due,Lender may notify the
<br /> Borrower and require Rorrower to make up the shortage as pennitted Uy RESPA.
<br /> The Escrow runds are pledged a9 addiYiona1 seeurity for all sums secured by this Security
<br /> Instrument If Borrower tenders to Lender the full payment of all such sums,Borrower's account shall Ue
<br /> credited with the balance remaining for all installmcnt items(a), (b), and(c)and any mortgage insurance
<br /> premium installment that L,ender has not become obligated to p1y to the Secretary,and Lender shall promptly
<br /> refund any excess funds to Borrower. Immediately prior to a fareclosure sale of the Property or its
<br /> acquisilion by Lender,Borrower's account shall be credited with any balance remaining for all installments
<br /> for items(a),(b),and{c).
<br /> 3.Application of Payments. Ali payments mider Paragrapl�s 1 and 2 shall be applied by Lender as
<br /> fallows:
<br /> First,to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly
<br /> charge by the Secretary instead of thc monthly mortgage insurance premium;
<br /> Second,to any taxes,speciol assessments,leasehold payments or ground rents,and fire,flood and
<br /> other hazard insurance premiums,as required;
<br /> Third,to interesl due under lhe Note;
<br /> Fourth,to amortization of the principal of the Note;aud
<br /> Fifth, to late charges due under the Note.
<br /> 4. Fire, P'lood and Other Aazard Insurance. Borrower shall insure all improvements ou the
<br /> Property, whediet now in cxistence or subsequently erected, against any hazards, casuahies, and
<br /> contiugencies,including fire,for which Lender rcquires insurancc.1'his insurance shall be maintained in the
<br /> amounts and for the periods tliat Lender requires. Borrower shall also insure all improvemenls on the
<br /> Property,whether now in exietence or sub,equently erected,against loss by floods to the extent required by
<br /> the Secretary.All insurance shall he carried with companies approved by T,ender.T11e insur<znce policies 1nd
<br /> any renewals sl�all be held by Lender and shall include loss payable clauses in favor o£, and in a fonn
<br /> acceptable to,Lender.
<br /> In the event of loss,Borrower shall�ive Lender imuiediate notice Uy mail.Lender may make proof
<br /> of loss if nvt madc promptly by Borrow�er.Each insurance company concerned is hereby authorized and
<br /> directed to make payment for such loss dircctly to Lender,instead of to Borrower and to Lender jointly.All
<br /> or any part of the uisurauce proceeds may be applied by Leuder,lt its option,either(a)to thc reduclion of the
<br /> indebtedness under the Note and this Security Instrument,first to any delinquent amounts applied ui the order
<br /> in Pazagraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the dauiaged
<br /> Properry.Any application of the proceeds to the principal shall not extend or postpone the due date of the
<br /> monthty paymenCs which are referred to in Paragraph 2,or change the amotint of such payments.Any excess
<br /> insurance proceeds over an amount required to pay all outst�inding indebtedness under the Note and this
<br /> Securiry Instrument sha11 be paid to Ihe entity legally entitleci thereto.
<br /> In the event of foreclosure of this Securiry Instrument or other transfer of title to the Property t1�at
<br /> cxtinguishes the indebtedness,all ri�ht,title and utterest oF Borrower in and to insurance policies in force
<br /> shall pass to the purchaser.
<br /> 5. Oceupancy,Preservation,Muintenancc nnd Protection of the Property;Borrower's Loan
<br /> �lpplication;Leaseholds. Borrower shall occupy,estahlrsh,and use the Property as Borrower's principal
<br /> residence within sixty days after the execulion of this 3ecuriry lnstrument(or within sixry days of a later sale
<br /> or transfer of the Property)and shall coutinue to occupy the Property as Borrower's pruicipat residence for at
<br /> least one year after the date of occu�ancy, unless Lender deYe�mines that requirement will cause undue
<br /> hardship for Borrower, or unless extenuating circumstances exist which are beyond Borrower's control.
<br /> Bonower shall notify Lender of any extennating circwnstanecs.Borrower shall not commit waste or destroy,
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