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<br />90:-- 10492
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<br />L 1ltitd lilaell.It Iateeral ati -Late CMwrge. Borrower shall pay when due the principal of, and interest on, the,debt
<br />evidenced by the Note and later charges due under the Note. '
<br />2, Maltthb lypattea a wf Tan% iostraatx Md Ober Clargea, Borrower shall include in each monthly payment. together with
<br />'Wand interest asset forth is the Plate and any latacha lies, an installment -ofany (a) taxes and special its
<br />levied to levied aSdatx
<br />or be the Property. (b) leasehold payments -or ground ruts on the Property, and (c) premium for
<br />iawratime feq*W by Paragraph 4.
<br />Eaclr montbly iastallowt for items (a). (b) and (c) shall equal one -tw a fth of the annual amounts, as reasonably estimated by
<br />L�a�der. plus an amount sufficient to maintain an additional baianceof not more than otle-sixth of the estimated amounts. The
<br />fnnu sluts! wttrottwt for each item shall be accumulated by Lender within a period ending one month before an item would
<br />UL Lender 24tH bold the amounts collected tin tmst to pay items (a). (b) and (c) before they become delinquent.
<br />if at say time the total of the paymaits held by Lender for items (a).. (b), and (c), together with the future monthly payments.
<br />for t3ucA items payabk to Lewder prior to the due data of such items, exceeds by more than one -sixth the estimated amount of ,
<br />Payments required to pay such items when due, and if payments on the Note are tcurrent, then !.ender shall either refund the
<br />seines over ore -sixth of the estimated payments or credit the excess over one -sixth of the estimated payments to subsequent,
<br />paymeata by Boaower, At the option of Borrower. If the total of the payments made by Borrower for item (a), (b), or (c) h
<br />insuffideat to pay the item when due, then Borrower shall pay to Lender any amount necessary to make up the gef"rciency on or '
<br />Wore the date the item becomes due.
<br />As used in this Security instrument, •'Saxetary, , means the Secretary of Housing and Urban Development or his or her
<br />designee. Most Security Instruments insured by the Secretary are insured under programs which require advance payment of the
<br />Mire mortgage inwtancepnemium. If this Security Instrument is or was insured under .a program which did not require advance
<br />Payment of the entire trtortgage insurance premium, then each monthly payment shall also include either. (i)an installment of the
<br />am insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage
<br />eii Security Instrument is held by the Secretary. Each monthly installment of the mortgage. 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 date the frill annual mortgage insurance premium is due to the Secretary, or if this Security Instrument is held by the
<br />Sartttay, 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 Security Instument; 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 Lender 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 any balance remaining for all Installments for items (a), (b) and (c).
<br />3. AMlleatioa of ftymeats. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
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<br />$$, 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;
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<br />SECOND. to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance
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<br />premiums. as required;.
<br />I . to interest due under the Note;
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<br />FOURTH, to amortization of the principal of the Note;
<br />IM, to late charges. due under the Note.
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<br />4. Fie, FfoM wad OtberH&=rd Wwramee. Borrower shall insure all improvements on the Property, whether now in existence
<br />or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires insurance.
<br />This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also insure all
<br />improvements the Property,
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<br />on 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 any renewals shall
<br />be held by Lender and shall Include loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />In the event Of loss. Borrower shall give Lender immediate notice by mail. Lender may make 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 Leader jointly. All or any part of the insurance proceeds may be applied by Lender, at its
<br />option, either (a) to the reduction of the indebtedness 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
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<br />payments which are referred to in Paragraph 2. or change the amount of such payments. Any excess insurance proceeds over an
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<br />amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legal-
<br />fy entitled thereto.
<br />In the event of foreclosure of this Security instrument or other transfer of title to the Property that extinguishes the in-
<br />debtedness. all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />S. Ptsaess<adost std f4lbli sce of the Property, Leaseholds. Borrower shalt not commit waste or destroy, damage or
<br />substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect
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<br />property 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 Proteetioa of Lender's Rights in the Property. Borrower shall pay all governmental or municipal
<br />charges. fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to the
<br />entity which is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's re-
<br />quest Borrower shall promptly furnish to Lender receipts evidencing these payments:
<br />If Borrower fails to make these payments or the payments required by Paragraph 2, or fails to perform any other covenants and
<br />agreements contained in this Security instrument, or there is a legal proceeding that may significantly Affect i ender's rights in
<br />the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations). then Lender may do and
<br />Pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, including payment of taxes,
<br />Ward Insurance and other items mentioned in Paragraph 2.
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<br />Any amounts dis(tursrcl by lender under this Paragraph shall become an additional debt of Borrower and be secured by this
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<br />Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate. and at the option of
<br />Lender. shall be immediately due and payable.
<br />7. Comkin atlon. The proceeds of any award or claim for damages. direct of consequential, in connection with imy condem-
<br />nation or other taking Property,
<br />of any part of the or for conveyance in place of condemnation, are hereby assigned and shall be
<br />Paid to Lender to theextcntof the full amount of the indebtedness that remains unpaid under the Note and this Security insiru-
<br />meet. Lender shall apply such proceeds to the reduction of the indebtedness under the Nate and this Security Instrument, first to
<br />any delinquent amounts applied in the order in Paragraph 3,
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<br />provided and Chef: to prepayment of principal. Any application pt
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<br />the proceeds to the principal slaty no[- .extend or postpone the due date of the monthly payments, which arc tefetted to in
<br />Paragraph 2. or change the amount of such payments. Any excess proceeds over an annual required to pay all outstanding in
<br />debtedness under the Note and this Security Instturnent shall be paid to the entity legally entitled thetcro.
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<br />8. Fees, lender may collect fees and charges authorized by the Secroary.
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