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90- 104952
<br />L ft ad lhtaelpal. lhaow a" Late t mew Borrower shall pay when due the principal of, and interest on. the debt `
<br />evidenced br the Note atsd late charges due under the Note.
<br />Z. Maalily ><a nimtr of Taron. Iawraaete aM Otree Aiagea. Borrower' itt e& In each monthly payment, together with
<br />the priaciprst and latest a net forth in the Note and any late charges, of any (a) taxes and special assesstnsnts
<br />levied or to be kded abim the Property. (b) katehold payments or ground rents on the Property, and (c) premiums for
<br />Iasaussce required by Paragraph 4.
<br />Each illr iaraallmmt far items (a), (b) and (c) dull mpg ono-tweifth of ttie armuiamounts, as reasonably caimb -by
<br />header. On an inoutnt suffxdent to'tnaaintain an additional balance of not more than one - smith of the estimated amounts. The ,
<br />fall aeatrai maosts for each it= shall be accumulated by Lender withth a period ending one month before an item would
<br />bdonme die ioquo uL I.atde: stoa8 hold the amoumta collected is trust to pay items (a), (b) and (c) before they become delinquent.
<br />Hat onytime the total of the payments hid by Lender for items (a), (b), and (ch together with the future monthly payments
<br />for such items pat W to Leader prior to the due dazes of such items, exceeds by more than one -sixth the estimated amount of
<br />payments squired to pay such items wheat due, and if payments on the Note are current, t7ien %nder shall either refund the
<br />J ov cue -sixth of the estimated payments or credit the cans over one -dub of the estimated payments to subsequent
<br />payments by Borrower. at the option of Borrower. If the totil of the payments made by Borrower for item (a), (b), or (c) is
<br />lmatficiM to poky the item when due, then Borrower shallpoy to Lender any amount necessary to make up the deficiency on or
<br />before- the date the item becomes due. '
<br />As used in this Security Insou_++�t*- "Secretary" means the Secretary of Housing and Urban Mvelopment or his' of her
<br />desigoaa. Most SeeA* Instruments insured by the Secretary are insured under programs which require advance payment of the
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<br />entire mortpge insurance; premium. If this Security Instrument is or was insured under a program which did not require advance .
<br />payment of the entire mortgage insunuke premium, then each monthly payment shall also include either•. (1) an installment of the - - -
<br />annud mortgage ias;uraice premium to be paid by Lender to the Secretary, or fit) of monthly charge instead of a mortgage
<br />inivu ranee premium if this Secttnty lamument Is held' by the Seccretary. Rmh 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 full annual mortgage insurance premium is One to the Secretary, or 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 />i. If Borrower lenders to Lender the full payment of all sums secured by this Security 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 Leader has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to
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<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 installmentsfor items (a), (b) and (c).
<br />3. A of ftya ln. All payments under paragraphs I and 2 shall be applied by Lender as follows:
<br />I=, to the mortgage insurance premium to be paid by !.ender to the Secretary or to the monthly charge by the Secretary i
<br />instead of the monthly mortgage insurance premium, unless Borrower paid the entire mortgage insurance premium when this
<br />Security Instrument was signed;
<br />to any taxes, special assessments, leasehold payments or ground rents, and fire. flood and other hazard insurance
<br />premiums. as required;
<br />i 32M. to interest due under the Note;
<br />to amortization of the principal of the Note;
<br />II to late charges due under the Note.
<br />d- Fine. Fbaa sW Ober Hazard Iaaaraaee. 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 on the 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 any renewals shall s
<br />be held by Lender and shall include loss payable clauses_in favor of, and in a form acceptable to, Lender.
<br />In the e:vot 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 1
<br />Lender, instead of to Borrower and to Lender jointly. All or any pan 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
<br />i payments which are referred to in Paragraph 2, or change the amount of such payments. Any excess insurance proceeds over an
<br />i amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legal- —
<br />ly entitled thereto. "f
<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 tight, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />i S. lreaensfiom ad Mahteuance of the Property. Leawhokb, Borrower shall not commit waste or destroy. damage of
<br />f substantially change the Property or allow the Property to deteriorate. reasonable wear and tear excepted. Lender may inspect
<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 />i 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 />f. Cbww to Swowttr mod Pmteedon of Lvn r's.lR%hts 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 bender'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 />Weements 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 laws or regulations), then Lender may do and r
<br />pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, including payment of taxes,
<br />hazard insurance and other items mentioned in Paragraph 2.
<br />Any amounts disbursed by lender under ibis Paragraph shall become an additional debt of Borrower and be secured by this
<br />Security Instrument. These amounts shall tear interest from the date of disbursement. at the Note rate. and at the option of
<br />Lender. shah W inuirediately due and yspabtc. - -- - - -
<br />9. Cost+.oieaasdon. The proceeds of any award or claim for damages, direct or consequential, in connection with any condem-
<br />nation or other tolling of any part of the Property, or for conveyance in plc x of condemnation, are hereby assigned and shall be
<br />paid to Lender to the extent of the full amount of the indebtedness that remains unpaid -urdcr the Note and this Security instru-
<br />. ment. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security Instrument. first to
<br />any delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment of principal. Any application of KO
<br />the proceeds to the principal shall not extend or postpone• the due date of the monthly payments, which are referred to in
<br />Paragraph 2i or change the amount of such pavnrents. Any excess proceeds Over nn arrwpnt required to pay all outstanding in•
<br />debtednen under the Note and this Security instrument s11411 be paid tv the entity legsily entitled thereto.
<br />a. Veer. Lender may collect fees and charges authorised by the Se.rctary
<br />!'age. a/ I * {1
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