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�:
<br />rat, ��C�����
<br />���`A 201204392
<br />2Q�.2�4207
<br />TOGEIT�R WITH all the improvements now or hereafter erected on the properiy, and all
<br />easements, appurtenances, and fixwres now or hareafter a part of the property. All rep�scemeats and
<br />additions shall also be covered by this Se�uriry Instrument All of the foregoing is referred to in this Sewrity
<br />Instrument as the "Property". Borrower understands and agrees that MERS holds only legal title to the
<br />interests granted by Borrower m tlus Security Instiument; but, if necessary to comply with Taw or custom,
<br />MERS (as nominee for Le,nder and Lendets successors and assig�ns) has the righ� to exerc�se any or all of
<br />those interests, including, but not limited to, the right to forexlose and sall the Property; and w take any
<br />action required of Lender includin�, but not limited to, releasin or cauceling this Security InsWmen�
<br />BORROWER COVENANTS tbat Borrower is la seized of the estate hereby conveyed and
<br />has the right W grant and convey die Ptoperiy , and th�� Property is unencumbet'ed, except for
<br />encumbrances of record. Borrower wazrants and will defend generally the title to the Property agamst all
<br />claims and demands, subject w au}+ encumbrances of record.
<br />THIS SECURITY INSTRUNIENT combines uniform covenants for national use and non-uniform
<br />covenants with limited variations by jurisdiction to consdtute a uniform security inshument covering real
<br />P��Y�
<br />Borrower and Lender covenant and agree as follows:
<br />iJNIFORM COVENANTS.
<br />1. Payment of Principal, Interest and Late C6arge. Borrower shall pay when due the principal of,
<br />and interest on, the debt evidenced by the Note and late charges due under the Note.
<br />2. Monthly Payment of Tases, Insurance, and Other Charges. Borrower shall include in each
<br />monthly payment, tagether with the principal and interest as set forth in the Note and aay late charges, a sum
<br />for (a) taxes and special assessments levied or to be levied against the Properiy, (b) leasehold payments or
<br />ground rents on ihe Property, and (c) premiums for insurance required under Para�aph 4 ��y y� �
<br />which the Lender must ay a mortgage insurance premium to the Secretary of Housin� and Urban
<br />Development ("Secretary"� or in any year m which such premium would have be�n required �f T.ender still
<br />held the Security Instrument, each monttily payment shall also mclude either: (i) a sum for the annual
<br />mortgage insurance premium to be paid by Lender to �e Secretary, ar (ri) a monthly charge mstead of a
<br />mortgage insw�ance premium if this Security Instrument is held by the Secretary, in a reasonable aTnount to
<br />be determinai by the Secremry. Except for the monthly charge by the Secretary, 1i�ese items are called
<br />"Escrow Items" �d the sams �d to I,�der are called "Escrow Funds."
<br />Lender may,.at any time, collect and hold amounts for Escrow Itema in an aggrogate amount not to
<br />exceed the maximum amount thatmay ba required for Borrovi�er's escrow account under the Real Estate
<br />Settlement Procedwes Act of 19�74, 12 U.S.C. § 2601 et sea. and implementing regulatlons, 24 CFR Part
<br />3500, as they may be amended from time to time ("RESPA"), except that the cushion or reserve permitted by
<br />RESPA for unenticipated disbursements or disburseme�nts l�fore the Borrower's payments are available in
<br />the accoimt may not be based on amounts due for ihe mortgage insurance premium.
<br />If the amounts held by Lender for Eserow Items exceed the amounts permitted to be held by
<br />RESPA, Lender shall account to Borrower for .the excess funds as required by RESPA. If the amounts of
<br />funds held by Lender at any time are not sufficient to pay the Escrow Items when due, Lender may notify the
<br />Boaower and require Borrower to make up the shortage as pennitted by RESPA.
<br />The Escrow Funds are pledged as additional security for all sums secwed by this Security
<br />Instrumen� If Borrower tenders W Lender the full payment of all such sums, Borrowe�'s account shall be
<br />credited with the balance remaining for all installment items (a), @), and (c) and any mortgage ins�uance
<br />premium installment that Lender has not become obligat� to pay to the Secretary, and Lender shall pmmptly
<br />refimd any exc�s fimds to Borrower. Immediatelyp or to a foreclosure sale of the Pro�erty or its
<br />acquisition by Lender, Borrowe�s account shall be credited with any balance remaining for all mstallme�rts
<br />for items (a), (b), �d (c).
<br />3. Appllcation of Payments. All payments under Parag�aphs 1 and 2 shall be applied by Lender as
<br />follows:
<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 the monthly mortgage ins�uance premium;
<br />Second, to any laxas, special assessmen�s, leasehold payments or ground rents, and f�e, flood and
<br />other hazazd ins�uance premiums, as required;
<br />Third, to interest_due under the Note;
<br />Fourth, to amordzation of the principal of the Note; and.
<br />Fifth, to late charges.due under the Note.
<br />4. Fire, Flood and Other Aazard Insurance. Boaower shall msure all unprovements on the
<br />Property, whether now in existence or subsequently erected, a�ainst any hazards, casualties, and
<br />contingencies, including fire, far which Lander req�ires insuraace. Ttus insucance shall be maintaiaed in tha
<br />amounts and for the periods that Lendar raquires. Borrower shall also insure all improvements on the
<br />Property, whedier now in existence or subsequently erected, against loss by floods to the extent rec�uired by
<br />the Secretaiy. AU insurance shall be canied with compa�ues approved by Lender.lhe insurance pohcies and
<br />any renewais shall be held by Lender and sha11 include loss payable clauses in favor of, and in a form
<br />acceptable to, Lender.
<br />In tha event of loss, Borrower shall give Lender immediate notice by mail. Lender may makeproof
<br />of loss if not made promptly by Barrower. Each inaurance co any concemed is hereby authorized and
<br />directed to maka �aymeat for such loss directiy to Lender, inst�of to Borrower and to Lender jointly. All
<br />or any part of the msurance proceeds may ba applied by Lander, at its option, eitha (a) to the reduction of the
<br />iadebtedness under the Note and this Security Instrument, firat to auuy delinquent amounts applied in the order
<br />in Para�raph 3, and then to pregayment of principal, ar(b) to the restoration or repaar of the damaged
<br />Property. Any application of the proceeds to the prittcipal sha11 not extend or post�ne the due date of the
<br />monthly payments which are referred to in Paragtaph 2, or change the amount of such payments. Any excess
<br />u►suranca proceeds over an amount required to pay all outstanding indebtedness under the Note and this
<br />Security Tnstr�ment shall be paid to the entity legaYly entitled ffiereto.
<br />In the event of foreclosure of this Security Instnmment or other hansfer of tifle to the Property thai
<br />extinguishes the indebtedne�c, all right, title and 'mterest of Borrower ia aad to insuraace policies in force
<br />shall pass to the piuchaser.
<br />5. Occapancy, Preservation, Maintenance aad Protec�on of t6e Property; Borrower's Loan
<br />Ap�lication; Leaseholds. Borrower shall occupy, establish, and use the Property as Bortower's principal
<br />residence within sixty days afler the execution of this Security 1nsWment (or wtthm sixry days of a later sale
<br />or t�ansfer of the Property) and shall continue W occupy the Iiroperty as Baaower's prmcipal residence for at
<br />least one year after the data of occupancy, unless Lender determines thatrequirement wiU cause undue
<br />hardship for Borrower, or unless extenuahng circumstances exist which are beyond Borrower's conlrol.
<br />Borrower shall notify Lander of any exteauating circumstances. Borrower shall not commit waste or destroy,
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