|
k" L
<br />L )la1 of Il dWM tai rune Charge. Borrower shall pay when due the principal of. and- interest on. the debt
<br />evidenced by the Note atnd late d wges due trader the Note.
<br />Z. �aatYy lgaseattr otTXW h arattee asp Other ChWVL Borrower shall include in each monthly payment, together with
<br />rr the ,principal and interest as set forth in the Note and "any lire charges, an instillment of any (a) taxes and special assessments,
<br />Wiled or to be levied against the Property, (b) leasehold payments or ground rents on the Property, and (c) premiums for
<br />insurance Muired by Pamg aph 4.
<br />:. thus tri hltr+rwnt or •
<br />-- - ._.— o tst>slob)s )R k u:>ow-4W Ttof{wanaualiaowtii r v- acirrai>fi► a� ___- .- _ "-- :. ;_ ---
<br />: --
<br />Lam: On" amount sufficient to maintain an addmOmal balance of not more than one -sixth of the estimated amounts. The
<br />fd atmnal amount for each item sball'be accumulated by Lender within a period ending one month before an item would
<br />become delinquent. Lenda'shall hold the amounts collected in trust to pay items (a), (b) and (c) before they become delinquent. .
<br />`- If at any time the total of tbepayments held by Lender for items (a), (b), and (c), together with the future monthly payments
<br />for such itermss payaW to-Lender prior to the due dates of such Items, cmeeds by more than one- siztlt•the estimated amount of
<br />. payments required to pay such items wizen due, and if payments on the Note are current,'them Leader shall either refund the
<br />excess over one -sixth of the estimated payments or credit the excess over one -sixth ofthe estimated payments.to subsequent
<br />Payments by Borrower, at the option of Borrower. If the total of the payments made by Borrower for item (a), (b). or (c) is
<br />insufficient to pay the item when due, then Borrower shall pay 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 Instrument,. "Secretary" means the. Secretary of Housing and Urban Development of his or her
<br />- . designee, Most Security Instruments insured by the Secretary are instue:d under programs which require advance payment of the
<br />entire mortgage Durance premium. If this Security Instrument Is or 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 n an installment of the
<br />annual • Mortgage: insurance premium to be paid by Lender_ to the Secretary, or (a) a monthly charge instead of *a mortgage
<br />Insurance premium if this 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 mortg±ge hisura++ce premium with Lender one month
<br />Prior to the date the full annual mortgage insurance premium is due to the Secretary, or if this Security Instrument is held by the
<br />Seret.M. each monthly charge shall be in an amount equal to orte- twelfth of one -half percent of the outstanding principal
<br />_ balance due on the Note—
<br />If Borrower tenders to Lender the frill 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 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. Apllcatioa of Pa>taeats. All payments under paragraphs l and 2 shall be applied by Lender as follows:
<br />Ft$ST, 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 />, COND, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance
<br />premiums, as required;
<br />3HM, to interest due under the Note;
<br />FOURTH, to amortization of the principal of the Note;
<br />jam, to late charges due under the Note.
<br />• 4. Fine, Flood sad Other Hazard finest mis ce. 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
<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 Lender 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
<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 indebtedness
<br />>a6
<br />pay all outstanding 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 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 />d, Praervatloa trod Mtdatesuce of the Property, Leaseholds. Borrower shall 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
<br />Met 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 tease. if Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged Lender
<br />unless
<br />agrees to the merger In writing.
<br />f. Charges to Borrower and Protection of Lender's Riots Is 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 total proceeding that may significantly affect t eniier'c rights its
<br />the Property (stied 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 />. hazard insurance and other items mentioned in 'Paragraph 2.
<br />.: Any amounts disbursZ4 by lender under this Paragraph shaft iimume an additional dent of uorrower and be sce'tued by this
<br />=- -- " - -- - -- see.�urtty tttstnrment.- 'these ttmoartrs shaft bear interest from the date -or disbuisenient; at tTte Note -rats, anei at the option of
<br />Lender. shall be immediately due and payable.
<br />1. Condeetaaton. The proceeds of any award or claim for damages, direct or consequential, in connection with any cundem-
<br />nation or other taking of any part of the Property, or for conveyance in place of condemnation. are hereby assigned and shall be
<br />paid to Lender to the extent of the frill amount of the indebtedness that rernaim unpaid under the Note and this Security Iustru
<br />St
<br />fi-
<br />ment. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and thi` Security Insttuntent. first tc. any delinquent amounts alpplied in the order providtd in Paragraph 3. and then to prepayment of
<br />Any
<br />prinapal.
<br />application of the proceeds to the principal shall not extend or postpone the due crate of the monthly payntettt,, tvltich arc referred to ud
<br />Paragraph 2, of change the amount of Ouch payments: Any excess proceeds c,rer an amvmrtt requ:redf to gay all unimpfiding ui
<br />debtedness under the Note and this Security lnsttunteut shall be paid- to the entity legally ref iticd thereto.
<br />u
<br />tender may collet( fee,, and charges authorized by the Secretary.
<br />
|