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<br /> W >pncK3pal, lldti~ert ~,'LVOe pay wires ehn;,~ the prittt:(ptt ~ zeal iNPiw~lal tsa. thM
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<br /> by the Note and late charges dstt ttstllsa3 shits- ltkxv.
<br /> 2. Moolkly Payments of Taxtss. Iasstra&" lard t'It1►rr'i a7,re~' ,U InOwer shall Itmhsde in each mouthily payment, tosetber with .
<br /> lit (tiillci,-ial chit itildfEsi a, ut futth id the Note ARe, ally Ism tot of i tlttlkttlem of any(M) toes aged tt( %W asaw"Wts
<br /> levied or to be ieried against tke PropertyM !(.b) Ieatr,+exM paycnecst'r or ground reacts on site Property. oW (c) prestthirms for
<br /> insurance required by Paragraph a.
<br /> Each montWy installment for items (a), (b) wod (c) shat! equal ant-twelfth, of do atmnal amounts, as reasonably estimated by
<br /> Lender, plus an amount suff eont to ma main an additloual balance of not asore t'san one-sixth of the estimated amounts. lbe
<br /> full =nual amsrtutt far each item :shall be accutaulu eel 6+y Leader yr ,Mn a F•vdad ending. ore month before an item would
<br /> tw-come ddtriquent, tender shall hold the amounts collected in trust to pay item,. (ail. (b) and (c) before they become delinquent.
<br /> If at any time the total of the payments held by'LeMer for items (a). (b), art(: f r,). together with the future monthly payments
<br /> for such items payable to Leader prior to the due dates of smil iterr excee& b rr mote than one-sixth the estimated amount of
<br /> payments required to pay such items when due, and If paymtaats on tl,te Note stye current, then Lender shall either refund the
<br /> Gxeess over one-sixth of the estimated payments or credit the excess +sver ct+-,^-sixth of the estimated payments to subsequent
<br /> payments by Borrower, at the option of Borrower. If the total of the pv,; reents made by Bor:^. for item (a), (b), or (c) is
<br /> insufficient to psy the item when due, then. Borrower shall pay to sender ojiv amount necessary to make up the deficiency on or
<br /> before the date the item becomes due.
<br /> As used in this Security Instrument. "SmTctary" moots the Secretary of Ho::Ang and Urban. Development or his or her
<br /> designee. Most Security Instruments insured by the Secretary are insared under programs which require advance payment of the
<br /> entire mortgage insurance premium. If this Sorority fnttrument is er was insured under a program which did not require advance
<br /> payment of the entire mortgage insurance premium, then each monthly payment shall also include either: (i) an installment of the
<br /> annual mortgage insurance premium to be paid by Lender to the Sew etary, or (ii) a monthly charge instead of a mortgage
<br /> insurance premium if this Security Instrument is held by the Secretary. Each monthly installment of the rortgage insurance
<br /> premium shall be in an amount sufficient to accumulate the full annual mortgage Insurance premium with Lender one month
<br /> prior to the irate Cot full annual mortgage insurance premium IS due to the Secretary, ar if this Security Instrument is held by the
<br /> Secretary, each monthly charge shall be in an amount equal to one-twelfth of one-half percent of the outstanding principal
<br /> balance due on the Note,
<br /> If Borrower tenders to Lender the full payment of all sums secured by this Scrarity Instrument, Borrower's account shall be
<br /> credited with the balance' remaining for all installments for items (a). (b) and (c) and any mortgage insurance premium
<br /> installment that Lender has not become obligated to pay to the Secretary, and Under shall promptly refund any excess funds to
<br /> Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be.
<br /> credited with a-ny balance remaining for all installments for items (a), (b) and (c).
<br /> 3. Aptrlicettion of Payments, All payments under paragraphs I and 2 shall be ap+pl;ed by Lender aS follows:
<br /> ELM, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretary.
<br /> instead of the monthly mortgage insurance premium, unless Borrower paid the entire mortgage insurance premium when this
<br /> Security Instrument was signed;
<br /> FQQ, M, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance
<br /> premiums, as required:
<br /> THI&Q, to interest due under the Note;
<br /> FOUL r% to amortization of the principal of the Note;
<br /> fib, to Late charges due under the Note.
<br /> 4. Fire, Mood aa!t Other 11;azard Insurance. Borrower shall insure all improvements on the Property, whether now in existence
<br /> or subsequently erected, against any harards, casualties, and contingencici, including fire, for which Lender requires insurance.
<br /> This insurance shall be maintained in the amounts and for the perinds that Lender requires. Borrower shall also insure all
<br /> improvements on the Property, whether now in existence or subsequently erected, against lass by floods to the extent required by
<br /> the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and any renewals shall
<br /> be held by Lender and shall include loss payable clauses in favor of, and in a farm acceptable to, Lender.
<br /> In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may makes proof of loss if not made prompt-
<br /> ly by Borrower. Each Insurance company concerned is hereby authorized and directed to make: payment for such loss directly to
<br /> Lender, instead of to Borrower and to Lender o+intly. All or any part of the Insurance Proceedtt may be applied by Lender, at its
<br /> option, either (a) to the reduction of the in,i'ebtcdness under the Note and this Security Instrument, first to any delinquent
<br /> amounts applied in the order in Paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the
<br /> damaged property. Any application of the proceeds to the principal shall not extend or postpone the due date of the monthly
<br /> payments which are referred to In Paragraph 2. or change the amount of such payments. Any excess insurance proceeds over an
<br /> amount required to pay ttil outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legal-
<br /> ly entitled thereto.
<br /> In the event of foreclosure of this Security Instrument or other transfer of title to the Property that ertinguishes the in-
<br /> debtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass it, the purchaser.
<br /> 5. Preservetlon and Malntenante or the Property, Leaseholds. Borrower shall not commit waste or destroy, damage or
<br /> substantially change the Property or allow the Property to deteriorate, seasonable wear and tear excepted. Lender may inspmt
<br /> the property if the property is vacant or abandoned or the loan is In default. Lender may take reasonable action to protect and
<br /> preserve such vacant or abandoned property. If this Security Instrument is on a leasehold. Borrower shall comply with the provi-
<br /> sions of the lease. If Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless Lender
<br /> agrees to the merger in writing.
<br /> 6. Charges to Borrower and 1°roteetlon of Lender's Rights I:t the Property. Borrower shall pay all governmental or municipal
<br /> charges, fines and impositions that are not included in Paragrar'.: 2, Borrower shall pay these obligations on time directly to the
<br /> entity which is owed the payment. If failure to pay would advernely affect Lender's interest in the Property. upon Lender's re-
<br /> quest Bort„wcr shall promptly furnish to Lender teceipte evidencing these payments,
<br /> If Borrower fails to make these pitymenis or the payments required by Paragraph 2, or falls to perform any other covenants and
<br /> agreements contained In this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in
<br /> the Property (such as a proceeding in bankruptcy, for condemnation or to enforce lawn or regulations), then Lender may do and
<br /> pay whatever Is necessary to protect the verse of the Property and Lender's rights in the Property, including payment of taxes,
<br /> hazard Insurancr and other Items rnentionyd in Paragraph 2,
<br /> Any amounts disbursed by lender under this Paragraph shall become an additional debt of Borrower and be secured by this
<br /> Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the ootion rtf
<br /> Lender, shall be immediately due and payable,
<br /> 7. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any c4>ndent-
<br /> nation or ether taking of any part of the Property, or for conveyance in place elf condemnation, are hereby ass ;1t,,ed and ;;jail be
<br /> paid to Lender to the extent of the full amount of the Indebtedness that remvtns unpaid under the Note anc' !tits <;,r It i instru
<br /> mcnt, Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Securir ;instrument, first to
<br /> any delinquent amounts spelled in the order provided in Paragraph 3, and then to prepayment of princ'r,*.. Any application of
<br /> the proceeds to the principal shall not extend or postpone the due date of the monthly payments, tihich are referred to in
<br /> Paragraph 2, or change the amount of such payments. Any excess proceeds over an amount rtqulred to pay all outstanding in-
<br /> debtedness under the Note and this Security Instrument shall be paid to the entity legally entitled ul;ereto.
<br /> S. Fees. Lender may collect fees and charges authorized by the Secretary.
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