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<br /> damage or substantially change the Property or allow the Property[o deteriorate,reasonable wear and tear
<br /> exceptad.Lender may iuspect the Property if the Property is vacant or abandoned or the loan is in dePault.
<br /> Lender may take reasonable action to protect and preserve such vacant or abandoned Property. Bonowar
<br /> shall also be in default if Borrower,durnig the loan applicatiou process,gave materially false or inaccurate
<br /> inforn�ation or statements to Lender (or failed to provide Lender with any material information} iu
<br /> connection with the loan evidenced by the Note,including,but not limited to,representations conceming
<br /> Borrower's occupancy of the Property as 2 principal residence.If this Security Instntmcnt is on a leaschold,
<br /> Borrower shall comply with the pmvisions of the lease.If Bnrro«�er acquires fee title to the Property,the
<br /> leasehold and fee title shall not be merged unless Lender agrees to the merger in writing.
<br /> � 6. Condenmation. "I'he proceeds oL any awarci or claim for damages,direct or consequential,in �
<br /> coimection with any condeuuiation or other taking of azry part of the Property,or for conveyance in place of
<br /> conde�nnation, are hereby assigned u�d sl�all be paid to Lender to the extent of the full unount of die
<br /> indebtedness that remains unpaid under the Note and this Securiry Inshument. Lender shall apply such
<br /> proceeds to the reduction of the indebtedness under the Note and this Security Insl�tirnent, tirst to any
<br /> delinquent amounts applicd in the order providcd in Yaragraph 3,and then to prepayment of principal.Any
<br /> application of the proceeds to the princip�l sholl not extend or postpone the due clate of the monthly
<br /> payments, which are refened to in Paragraph 2, or change the amount of such pay7nents. Any excess
<br /> proceeds over an asnount required to pay all outstanding indebtedness uncier the Note and this Securiry
<br /> Instrument shall be paid to the entlty legaliy eutitled thereto.
<br /> 7.Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay
<br /> all gocernmenta]or municipal charges,fines and impositions that are not included in Paragraph 2.Borrower
<br /> shall pay these obligations on time directly to the entity which is owed the payment.If failure to pay would
<br /> adversely aLCecl Lcndcr's intu'rest in thc Yroperty,upon Lendcr's request Bosower shall promptly fumish to
<br /> Lender receipts evidencing these payuients.
<br /> If Bon�ower fails to make tl�ese payments or the payments required Uy Paragraph 2, or fails to
<br /> perforui any ottier covenants and agreements contained in this Secm-ity In.�trwnent, or there is a legal
<br /> proceeding that may significantly afPect Lender's rights in the Property(such as a proceeding in bankruptc}�,
<br /> for coudcmnation or to cnforcc]aws or rcgulations),thcn Lcndcr may do and�ay whatever is necessary to
<br /> protect the value of the Property and L.ender's rights in the Property, including payment of taxcs; hazazd
<br /> insurance and other items mentioned in Paragraph 2.
<br /> Any amounts disbursed by Lender under this Paragraph shall become an additional debt of
<br /> Borrower and be sccurcd by this Security InsLrumenL 1'hese amounts shal]bear interest from the date of
<br /> disbursemeut at the Note rate,and at the option of Leuder,shlll be immediately due and payablc.
<br /> Borrower shall promptly discharge auy lien�vhich has prioriry over tliis Security InstnttnenY unless
<br /> Borrower:(a)agrees in writing to the payment of the obligation secured by the lien in a manner acceptaUle to
<br /> Lender,(b)contests in good faith the lien by,or defends against enforcement of the lien in,legal proceedings
<br /> which in the Lender's opinion operate to prevent thc enforccment of thc lien;or(c)secures from the holder of
<br /> the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If I.ender
<br /> determines that any part of�e Property is subject to a]ien which may attain priority over this Security
<br /> lnstrument,Lender may give Borrower a notice identifyin� lhe lien.Borrower shall satisfy the lien or take
<br /> one or more of the actions set forth above widun 10 days of the giving of notice,
<br /> 8.Fees. Lender may collect fees a��d charges authorized by the Secretary.
<br /> 9.Grounds for Acceleration of Debt.
<br /> (a)Default Lcndcr may,exccpt as limited by regulations issuad by the Secretary in the case of payment
<br /> defaults,require unmediate payment in full of all sLUns secured by this Security Instniment if:
<br /> (i)Borrower defaults by failing to pay in fixll any monthly payment required by this Securiry Instrument prior
<br /> to or on the due date of the next monthly pay�nent,or
<br /> (ii)Borrower defaults by failing,for a period of thirty days,to perforsu any other obligations contained in thie
<br /> Security Instrument.
<br /> (b)Sale Without Credit Approval. Lender shall,if penvitted by applicable law(including section 341(d)
<br /> of the Gam-St Cennain Depository Institutions Act of 1932, 12 U.S.C. 1701j-3(d)) and with the prior
<br /> approval of the Secretary, require immediate paymene in full of all the sums secured by this Security
<br /> lnstrumcnt if:
<br /> (i)All or part of the Property,or a beneficial interest in a trust owning all or part of thc Property,is sold or
<br /> otherwise transferred(other than by devise or descent),and
<br /> (ii) "1'he Property is not occupied by the purchaser or grantee as his or her principat residence, or the
<br /> purchaser or grantee does so occupy the Property,but his or her credit has not been approved in accordance
<br /> with the requirements of the Secretary.
<br /> (c)No Waiver. If circumstances occur that would permit Lender to require i�nmediate payuient in full,but
<br /> L ender does not require such payments,Lender does not�i�aive its rights witt�respect to subsequent events.
<br /> (d)Regulafions of HUD 5eeretary.ln many circurnstances regulations issued by the Secretary will limit
<br /> Lender's righYs,in the case of payinent defanits, to require immediate payment in full and foreclose if not
<br /> paid.rhis Security Instiwnent does not authorize acceler:3tion or foreclosure if not pernutted by regulatious
<br /> ofthe Secretary.
<br /> (e)Mortgage Not Insured. Borrower agrees that if this Security Instiutnent and the Note are not determined
<br /> to be eligible for insurance under the National Housing Act within 90 Days from the date hereof,Lender
<br /> _ _ -
<br /> may, at its option require iinmediate payment in full of all sums secured by this Sacurity Ii�stramen[. A
<br /> written statemenY of any authorized agent of fhe Secretary daYed subsequent to 90 Days from the dake
<br /> hereof;declining to insure this Security Tnstrument and the Note,sha11 be deerned conclusive proof of such
<br /> ineligiUility. Notwithstandin� the foregoing, tl�is option may not Ue exercised by Lender when the
<br /> unavaIlability of insurance is solely duc to Lender's failura to reinit a inortgage insurance prenuum to the
<br /> Secretary.
<br /> 10.Reiustatement. Borrower has a right to bc rcinstntcd if Lcnder has reqiured immediaTe payment
<br /> in full Uecause of Boirowei's failure to�ay an amowrt due under the Note or this Security Instrument.This
<br /> right applies even aPter foreclosure proceedings are instituted.To reinstate the Securily Instrument,Borrower
<br /> shall tender in a lump sum all amounts required to bring Sorrower's account current including,to the extent
<br /> they are obligarions of Borrower under this Security Inshument, foreclosure costs and reasonable and
<br /> customary attorney's taes and expenses properly associated with the foreclosure proceeding. Upon
<br /> rcinstatcincnt by Borrowcr,this SecLUiry Instrument and the obligations diat it seciu•es shall retnain in effect
<br /> as if Leuder had not required immedilfe payment in fuli. However, Lender is not required to perinit
<br /> reiru�tatement if: (i)Lender has accepted reinstatement after the commencement of foreclosure proceedings
<br /> within two years immediately preceding the commencement of a current foreclosure proceeding, (ii)
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