201202697 - Laserfiche WebLink

Browse

20120269� 13. Relationship to Second Security Instrumen� (a) Second Security Instrument In order to secure payments which the Secretary may make to or on behalf of Borrower pursuant to Section 255(i)(1)(A) of the National Housing Act and the Loan Agreement, the Secretary has required Borrower to execute a Second Note and a Second Security Instrument on the Property. (b) Relationship of First and Second Security Instruments. Payments made by the Secretary shall not be included in the debt under the Note unless: (i) This Secwity Instrument is assigned to the Secretary; or (ri) The Secretary accepts reimbursement by the Lender for all payments made by the Secretary. If the circumstances described in (i) or (ii) occur, then all paymenu by the Secretary, including interest on the payments, but excluding late charges paid by ihe Secretary, shall be included in the debt under the Note. (c) Effect on Borrower. Where there is no assignment or reimbursement as descn'bed in (b}(i) or (ri) and the Secretary makes payments to Boaower, then Borrower shall not: (i) Be required to pay amounts owed under the Note, or pay any rents and revenues of the Properiy under Paragraph 19 to Lender or a receiver of the Property, until the Secretary has requ'ved payment-in-full of all outstanding principal and accrued interest under the Second Note; or (ii) Be obligated to pay interest or shared appreciation under the Note at any time, whether accrued before or after the payments by the Secretary, and whether or not accrued interest has been included in the principal balance under the Note. (d) No Duty of the Secretary. The Secretary has no duty to Lender to enforce covenants of the Second Security Instrument or to take acrions to preserve the value ofthe Property, even though Lender may Ue unable to collect amounts owed under the Note because of restrictions in this Paragraph 13. 14. Forbearance by I.ender Not a Waiver. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 15. Successors and Assigns Bound; Joint and Several Liability. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender. Borrower may not assign any rights or obligations under this Security Instrument or under the Note, except to a trust that meets the requirements ofthe Secretary. Bonower's covenants and agreements shall be joint and several. 16. NoHces. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method The nodce shall be directed to the Properiy Address or any other address all Boaowers joinfly designate. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any address Lender designates by nodce to Bonower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this Paragraph 16. 17. Governing Law; Severability. This Security Instrument shall be govemed by Federal law and the law of the jurisdiction in wlvch the Property is located In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Inslrument or the Note wluch can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. 18. Borrower's Copy. Boaower shall be given one conformed copy of the Note and this Security Instrument. NON-UNIFORM COVENANTS. Bonower and Lender covenant and agee as follows: 19. Assignment of Rents. Botrower unconditionally assigns and transfers to Lender all the rents and revenues ofthe Property. Borrower authorizes Lender or L,ender's agents to collect the rents and revenues and hereby directs each tenant of the Properiy to pay the rents to Lender or Lender's agents. However, prior to Lender's notice to Borrower of Borrower's breach of any covenant or agreement in the Security Insmament, Borrower shall collect and receive all rents and revenues of the Properiy as trustee for the benefit of Lender and Borrower. This assignment of rents constitutes an absolute assignment and not an assignment for additional security only. If L.ender gives notice of breach to Boirower. (a) all rents received by Borrower shall be held by Pege 5 of 8 HECM First Deed Of Tn�al