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90--10 ;105
<br />-- -_— —s: r+gsos` �i Fsbaiiad�iir i3ur�r.rroiver shah�ywhenrtethe priadpa� af, and iate�xsroa; fie debt --
<br />evidenced by the Note and we charges due under the Note.
<br />2. b ftneents of Irases, Lsara■ee neat outer Ganges. Borrower shall include in each monthly payment, together with
<br />* principal and merest as act forth in the Note and any, late. charges, an installment of any (a) taxes and special assessments
<br />L-ded or m be levied against the Property. (b) leasehold payments or ground rents on, the Pjpeerty, and (c) premiums for
<br />hwa>aoce regdred by Paragraph 4.
<br />Mach monthly installment for items (a), (b) and (c) shall equal one-twelfth of the annual Amounts, as reasonably estimated by
<br />.Lender, plus an amount sufficient to maintain an additional batance•of not more than one -sixth of the estimated amounts. The
<br />full annual amount for each item shall btf accumulated by Leader within a period ending one month before sA item would
<br />beecttae ddupgtteat. Letgda sGaU hold tl)e amounts collected intrust to pay items (a). (b) and (c) before they become ddmgL%M.
<br />If st any time the total of the payments bead by Lender foritems (a), (b), and (c), together with the future monthly payments
<br />for studs items payable to lender prior to the due data of such items, exceeds by wore than oiler -sixth the estimated amount of .
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<br />payments required to pay such items whendue, and if payments on the Now are current, On Leader shall either refund the
<br />ezoesa over ooe sixth of the estimated payments or credit the excess over one -sixth of the estimated payments to subsequent
<br />payments by Borrower, st the option of Borrower. If the told of the payments made by Borrower for item (a). (b), or (c) is
<br />fasuffrdent to pay the stern 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 usedin this-Security Instrument- "SemetaW'. means the Secretary of-Housing and Urban Development or his or her
<br />desiptee. Most Security Instruments insured by the Secretary are insured under programs which require advance payment of the
<br />entire mortgage insurance prendum- 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. (i) an instalment of the
<br />Annual RKWMW ead of mortgage
<br />tlnstr be
<br />i0surucee Premium if this Secuft is held by them Secmary Each monthly installmyen of the mortgage
<br />premium shall be iin an amount sufficient to accumulate the full annual mort der one mouth
<br />mar
<br />thi premium cotta under one momlt
<br />prior to the date the full annual mortgage if
<br />� gage ittstuance premium is due to the Secretary, or if this Security Instrument is held by the
<br />.
<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 Bovro�wcr 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 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 fuads to
<br />Borrower. Immediately prior to a foreclosure We of the Property or its acquisition by Lender, Borrower's account shall be
<br />- . - -- -- credite&withan; balance seartsiaing- far�lt- ir>staltaseats- far - item° -(a)r, Rand (r). - --
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<br />3. Appiladea of ]Paymests. All payments under paragraphs l and 2 shall be applied by Lender as follows:
<br />• EM, 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 />-
<br />Security Instrument was signed,
<br />::
<br />to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance
<br />;
<br />premiums, as required;
<br />i r
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<br />31M, to interest due under the Note,
<br />FOURTH, to amortization of the principal of the Note,
<br />;
<br />E1M, to We charges due under the Note.
<br />4. Fine, FIoatl asid Otis Haaat d Iasarance. Borrower shall insure all improvements on the Property, whether now in existence
<br />or subsequently erected, against any hazards, casualties, and contingencies, including fife, 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 if) 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 toss, Borrower shall give Lender immediate notice by mail. Lender may matte 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. Ail 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 pay all 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 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. Preservation sad Mshomwe -of the Property, Lesseiolds. Borrower shall not commit waste or destroy. damage or
<br />substantially change the Property or allow the Property to deteriorate, reasonable wen 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-
<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. CbsW to lliorrown and ]Protection of IlA siler'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 faits 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, os 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
<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 />- - - : - -- - - - n atnt;--nts disbursed by tend.: under this :a.—wa-Fa sttaltt.,=m.- as add;wortat d.,bt o; t. aWWtr sad bc, secures; by this- -
<br />- -- -
<br />Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the option of
<br />'
<br />Lender. shall be immediately due and payable.
<br />Y. Condemaatlon. 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 theextent 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 this Security Instrument, first to
<br />r`
<br />any delinquent amounts applied to the order provided in Paragraph 3. and then to prepayment of principal, Any application of
<br />V)
<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 2. or change the amount of such payments. Any excess proceeds over an 'amount required to pay all outstanding in-
<br />�.
<br />r.
<br />debtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto.
<br />S. t;-ea. Lender may collect fees and charges authorized by the Secretary.
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