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<br />L lfgarsnt rat P I ie 1, Laurent v d Lute CkwvL Burrower shall pay when due Cite principal of..and interest on, the debt
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<br />evidenced by the Note and iate charges due under the Note.
<br />L Meeft Pa o f Tarps; llaaaraac: rid OtiYert:'hargas. Borrower shall include in each monthly payment, together with
<br />the pritteiai sod ittterat as set forth in tire'Note tend attar late charges; an installment of any f #1 tam and apeciat aerate
<br />1tvied oil-to, be levied y1iau rtes Poperty. (b)_laseholdpayments or to Q °.__the P7t. and fs] rremiums fee
<br />gads iasbBoteat for ittnps (a); (b) and (c) still agrees[ one - twelfth of theannual amounts, as reasonably estimated by
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<br />Leader. pitsa sec a was sufa dent to mdaidnan additional bdwm of not more than one -sixth of the estimated amounts. The .
<br />fag atatruaI taraoap , for each item shall be accumulated by Leader within a period ending one month before an item woulo
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<br />becoase deiissgireat. L ender shall bold the amounts collected iq trust to pay items (a), (b) and (c) before they become delinquent. '
<br />[fiat say ti•e the total of the payments held by Lender for items (er). (b), and (c), together with the fatnre monthly payments
<br />for such items payab>re to Deader prior to the due dates of such items, eicceeds by more than one -sixth the estimated amount of
<br />layman regmce I to pay such items when due, and if payments on the Note are current, then Lender shall either refund the
<br />treaters over one -sixth of the estimated payments or credit the excess over one�sixth of the estimated payments to subsequent
<br />payments by MTower, 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
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<br />before the date the item bWomes doe.
<br />As wed in this Security Instrument, 'Secretary" means the Secretary of Housing and Urban Development or his or her
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<br />- desipa- hicatSetaaity imtruments instated by tie Secretary are insured under programs wlkh require sdvance payment of the'
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<br />entire moAgye ins trance premium. If this Smdty )Instrument i or was insured under a program which did not require advance
<br />psymeat of the entire mortgage insurance premium; then each monthly payment shall also include either (i) an installment of the
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<br />annual mortgage insurance premium to be paid by Lender to the. Secretary. or (d) a monthly charge instead of a mortgage
<br />insure pradum U this Security Instrument is held by the Secretary. Each monthly installment of the mortgage,insura*c
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<br />premium shall be in an amount sufficient to accumulate tine full annual mortgage insurance premium with Letnder one month
<br />prior to the date the fail annual mortgage insw = premium is due to the Secretary. or if this Security Instrument fs held by
<br />Secretary, each monthly charge shall loo in an amount equal to one - twelfth of one -half percent of the outstanding principal
<br />balance dtw on the Note.
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<br />U Borrower tenders 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 Ad 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
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<br />Borrower. foredomme sale, -of the Prop--W or its acquisition by Lender, Bwr owei's account shall be
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<br />with any balance remaining for all installments for items (a), (b) and (c).
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<br />3. ANil- wh - of PaiymeaM. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<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 />Securityhutrument was signed;
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<br />I,C 1�, 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;
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<br />TiilBli, to interest due under the Note;
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<br />TI?oi HT , to amortisation of the principal of the Note;
<br />EM, to late charges due under the Note.
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<br />4. Fire, Held sad Obsess ilasri h arance. Borrower shall insure all improvements on the Property. whether now in existence
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<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. AU insurance shall be carried with companies approved by Lender. The insurance policies and any renewals shall
<br />be held by Lander 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
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<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 />atmtutts applied in the order in Paragraph 3. and then to prepayment of principal, or (b) to the restoration or repair of the
<br />dama;ed 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 req uhed to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legal-
<br />ly entitled thaeto.
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<br />in the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the in-
<br />debtednes, all right. title and Interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />L 11%u ►atba and Malsteaaace of the P .
<br />��� Borrower shall not commit waste or destroy. damage or
<br />substantially change the Property or allow t e Property
<br />i} operty 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 />preserve such vacant or abandoned property. if this Security Instrument is on a leasehold, Borrower shall comply with the provi-
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<br />lions of the Jesse. 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.
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<br />f. Charges to Sonower aaid Frotectlon of Leader's Riots In tM Property. Borrower shall pay all governmental or municipal
<br />charges, tines 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 />it Borrower fails to make these payments or the payments required by Paragraph 2, or fails to perform any other covenants and
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<br />agreements contained in this Security instrument. or there is a legal proceeding that may significantly affect Lender's rights in
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<br />the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may do and
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<br />-_ - - - - -- Ytttt'fsf�yrr�n►nrett�tn -f+r? tart: trs- v,. 1. reOftbeprnpffty and- Lender's riehisin the *nperty , Including payment MtexeR,
<br />hasArd inn., nee and oth items r8entlQn"e Lit Q�r°.�t :ylt :.
<br />Any amounts disbursed by tender 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 option of
<br />Lender, shall be immediately due and payable.
<br />7. CoMerasation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condem-
<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 full amount of the indebtedness that remains unpaid under the Note and this Security Instru-
<br />ment- Lender shall apply such proceeds to the reduction of the indebtedness under the Note and tl.. 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
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<br />the proceeds to the principal shall not extend or postpone the due date of the monthly payments. which are refetted to in
<br />Paragraph 2. or. change the amount of such psyments..Any excess.procceds over an amount required to -pay all outstanding.in-
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<br />debtedness under the Note and this Security instrument shall be paid to the entity legally entitled thereto.
<br />a. Feet. Lender may collect fees and charges authorized by the Secretary.
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