|
201300022
<br /> TOGETHER WITH all the improvements now or hereafter erected on the property, and all
<br /> easements, appurtenances. and fixtures now or hereafter a part of the property. All replacements and
<br /> additions shall also be covered by this Security Instrument.All of the foregoing is referred 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 law or custom,
<br /> MERS(as nominee for Lender and Lender's successors and 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 take any
<br /> action required of Lender including,but not limited to,releasing or canceling this Security Instrument.
<br /> BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and
<br /> has the right to grant and convey the Property and that the Property is unencumbered, except for
<br /> encumbrances of record. Borrower warrants and will defend generally the title to the Property against all
<br /> claims and demands,subject to any encumbrances of record.
<br /> THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform
<br /> covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real
<br /> property.
<br /> Borrower and Lender covenant and agree as follows:
<br /> UNIFORM COVENANTS.
<br /> 1.Payment of Principal.Interest and Late Charge.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 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)taxes and special assessments levied or to be levied against the Property. (b)leasehold payments or
<br /> ground rents on the Property, and (c)premiums for insurance required under Paragraph 4. In any year in
<br /> which the Lender must pay a mortgage insurance premium to the Secretary of Housing and Urban
<br /> Development("Secretary"),or in any year in which such premium would have been required if Lender still
<br /> held the Security Instrument, each monthly payment shall also include either: (i) a sum for the annual
<br /> mortgage insurance premium to be paid by Lender to the Secretary,or(ii) a monthly charge instead of a
<br /> mortgage insurance premium if this Security Instrument is held by the Secretary,in a reasonable amount to
<br /> be determined by the Secretary. Except for the monthly charge by the Secretary, these items are called
<br /> "Escrow Items"and the sums paid to Lender are called"Escrow Funds."
<br /> Lender may,at any time,collect and hold amounts for Escrow Items in an aggregate amount not to
<br /> exceed the maximum amount that may he required for Borrower's escrow account under the Real Estate
<br /> Settlement Procedures Act of 1974. 12 U.S.C. § 2601 et sec,and implementing regulations,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 unanticipated disbursements or disbursements before the Borrower's payments are available in
<br /> the account may not be based on amounts due for the mortgage insurance premium.
<br /> If the amounts held by Lender for Escrow 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 /> Borrower and require Borrower to make up the shortage as permitted by RESPA.
<br /> The Escrow Funds are pledged as additional security 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 be
<br /> credited with the balance remaining for all installment items (a). (b), and(c)and any mortgage insurance
<br /> premium installment that Lender has not become obligated to pay to the Secretary,and Lender shall promptly
<br /> refund any excess Rinds to Borrower. Immediately prior to a foreclosure sale of the Property or its
<br /> acquisition by Lender,Borrower's account shall he credited with any balance remaining for all installments
<br /> for items(a).(b),and(c).
<br /> 3.Application of Payments. All payments under Paragraphs 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 insurance premium;
<br /> Second,to any taxes,special assessments,leasehold payments or ground rents,and fire,flood and
<br /> other hazard insurance premiums,as required;
<br /> Third,to interest due under the Note:
<br /> Fourth,to amortization of the principal of the Note:and
<br /> Fifth, to late charges due under the Note.
<br /> 4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the
<br /> Property, whether now in existence or subsequently erected, against any hazards, casualties, and
<br /> contingencies,including fire,for which Lender requires insurance.This insurance shall be maintained in the
<br /> amounts and for the periods that Lender requires. Borrower shall also insure all improvements on the
<br /> Property,whether now in existence or subsequently erected,against loss by floods to the extent required by
<br /> the Secretary.All insurance shall be carried with companies approved by Lender.The insurance policies and
<br /> any renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form
<br /> acceptable to,Lender.
<br /> In the event of loss,Borrower shall give Lender immediate notice by mail.Lender may make proof
<br /> of loss if not made promptly by Borrower. Each insurance company concerned is hereby authorized and
<br /> directed to make payment for such loss directly to Lender,instead of to Borrower and to Lender jointly.All
<br /> or any part of the insurance proceeds may be applied by Lender,at its option,either(a)to the reduction of the
<br /> indebtedness under the Note and this Security Instrument,first to any delinquent amounts applied in the order
<br /> in Paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the damaged
<br /> Property.Any application of the proceeds to the principal shall not extend or postpone the due date of the
<br /> monthly payments which are referred to in Paragraph 2,or change the amount of such payments.Any excess
<br /> insurance proceeds over an amount required to pay all outstanding indebtedness under the Note and this
<br /> Security Instrument shall be paid to the entity legally entitled thereto.
<br /> In the event of foreclosure of this Security Instriment or other transfer of title to the Property that
<br /> extinguishes the indebtedness,all right,title and interest of Borrower in and to insurance policies in force
<br /> shall pass to the purchaser.
<br /> 5. Occupancy,Preservation,Maintenance and Protection of the Property; Borrower's Loan
<br /> Application;Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal
<br /> residence within sixty days after the execution of this Security Instrument(or within sixty days of a later sale
<br /> or transfer of the Property)and shall continue to occupy the Property as Borrower's principal residence for at
<br /> least one year after the date of occupancy, unless Lender determines that requirement will cause undue
<br /> hardship for Borrower, or unless extenuating circumstances exist which are beyond Borrower's control.
<br /> Borrower shall notify Lender of any extenuating circumstances.Borrower shall not commit waste or destroy,•
<br /> I6256.C'V(9.111 907873 Page 2 of 5 •
<br /> •
<br /> G01O(002492. '
<br /> •
<br /> a 7
<br />
|