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201607656 This sub paragraph (ii) is inapplicable or null and void if an Eligible Non - Borrowing Spouse is or becomes an Ineligible Non - Borrowing Spouse at any time. Further, during a deferral of the due and payable status, should any of the conditions for deferral listed in this Paragraph cease to be met, such a deferral shall immediately cease and the Note will become immediately due and payable in accordance with the provisions of Paragraph 6 (A)(i) of the Note. (b) Due and Payable - Sale. Lender may require immediate payment in full of all sums secured by this Security Instrument if all of a Borrower's title in the Property (or his or her beneficial interest in a trust owning all or part of the Property) is sold or otherwise transferred and no other Borrower retains title to the Property in fee simple or retains a leasehold under a lease for not less than 99 years which is renewable or a lease having a remaining period of not less than 50 years beyond the date of the 100th birthday of the youngest Borrower or retains a life estate (or retaining a beneficial interest in a trust with such an interest in the Property). A deferral of due and payable status is not permitted when a Lender requires immediate payment in full under this paragraph. (c) Due and Payable with Secretary Approval. - Lender may require immediate payment in full of all sums secured by this Security Instrument, upon approval of the Secretary, if: (i) Property ceases to be the Principal Residence of a Borrower for reasons other than death and the Property is not the Principal Residence of at least one other Borrower; or (ii) For a period of longer than twelve (12) consecutive months, a Borrower fails to occupy the Property because of physical or mental illness and the Property is not the Principal Residence of at least one other Borrower; or (iii) An obligation of the Borrower under this Security Instrument is not performed. A deferral of due and payable status is not permitted when a Lender requires immediate payment in full under this Paragraph 10(C). (d) Notice and Certification to Lender. Borrower shall complete and provide to the Lender on an annual basis a certification, in a form prescribed by the Lender, stating whether the Property remains the Borrower's Principal Residence and, if applicable, the Principal Residence of his or her Non - Borrowing Spouse. Where a Borrower has identified a Non- Borrowing Spouse in Paragraph 9 and the identified Non - Borrowing Spouse qualifies as an Eligible Non - Borrowing Spouse, the Borrower shall also complete and provide to the Lender on an annual basis an Eligible Non - Borrowing Spouse certification, in a form prescribed by the Lender, certifying that all requirements for the application of a Deferral Period continue to apply and continue to be met. During a Deferral Period, the annual Principal Residence certification must continue to be completed and provided to the Lender by the Eligible Non - Borrowing Spouse. The Borrower shall also notify Lender whenever any of the events listed in Paragraph 10 (b) and (c) occur. (e) Notice to Secretary and Borrower. Lender shall notify the Secretary and Borrower whenever the loan becomes due and payable under Paragraph 10 (b) and (c). Lender shall not have the right to commence foreclosure until Borrower has had thirty (30) days after notice to either: (i) Correct the matter which resulted in the Security Instrument coming due and payable; or (ii) Pay the balance in full; or (iii) Sell the Property for the lesser of the balance or ninety -five (95 %) of the appraised value and apply the net proceeds of the sale toward the balance; or (iv) Provide the Lender with a deed -in -lieu of foreclosure. (1) Notice to Secretary and Eligible Non - Borrowing Spouse. Lender shall notify the Secretary and any Eligible Non - Borrowing Spouse whenever any event listed in Paragraph 10 (b) and (c) occurs during a Deferral Period. (g) Trusts. Conveyance of a Borrower's interest in the Property to a trust which meets the requirements of the Secretary, or conveyance of a trust's interests in the Property to a Borrower, shall not be considered a conveyance for purposes of this Paragraph 10. A trust shall not be considered an occupant or be considered as having a Principal Residence for purposes of this Paragraph 10. 11. No Deficiency Judgments. Borrower shall have no personal liability for payment of the debt secured by this Security Instrument. Lender may enforce the debt only through sale of the Property. Page 4 of 10 HECM Second Deed Of Trust- -2015