|
0- -10 �ili
<br />- - - -great : rerert afa ,.tee _ -� - - s pr�mipai aftReresr�rr.�he debt — =_ --
<br />evfdeaced by the Note an¢ late charges due wader the Note.
<br />- _ - -
<br />2. i, O10ft Plsyaaeals of Tau% Iawraace 11" Other C\aagea, Borrower shall include in each monthly .payment, together with
<br />the principal and interest as set forth in the Note and any tate-charges, an installment of any (a) taxes and special assessments
<br />levied or to be levied spring the Property, (b) leasehold payments or ground rents on the Property, and (c) premiums for
<br />insargage required by Parapaph 4.
<br />Fach monthly installment for itetats (s). (b) and (c) shall equal one-twelfth of the annual amounts, as reasonably estimated by
<br />Lender, Aw an amount suffxaent to maintain an additional balance of not more than one -sixth of the estimated amounts. The
<br />full annual amount for each item shall be focumulated by Iender within a period'endina one month before an item would
<br />6eoonse "U'luau. Lender shall hold the amounts coUk!cted In trust to pay items (a), (b) before become delinquent.
<br />and (c) they
<br />If at any time the total of the payments held by Lender for items (a). (b). and (c). together with the future monthly payments
<br />far such heats payable to Lender prior to the due dates of such item.% 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 current, then Lender shall either refund the
<br />ercen over one -sixth of the estimated payments or credit the excess over one -sixth of the 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 />btsuffident 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 or his or In-
<br />designee. Most Security Instruments insured by the Secretary are insured under programs which require advance payment of the
<br />entire mortgage insurance premium. if this Security Instrument is or was insured under a program which did not require advance
<br />payment of the entire mor qW insurance premium, then each monthly payment shall also include either•. (7 an installment of the
<br />annual mortgage insurance premium to be paid by Lender to -the Secretary, or (n� 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 mortgage insurance 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 />- Secretary, cub montbly charge shall be In as amount equal to one - twelfth of one -half percent of the outstanding papal
<br />balance due on the Note. '
<br />If 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 all installments for items (a), (b) and (c) and any mortgage insurance premium
<br />ittstallaerit that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to
<br />Borrowet. 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. Ap/lleation of Psyaseata. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />P9RSjo the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly, charge by to 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 />.. SECONt2, to any taxes, special assessments, leasehold payments or ground rents. and fire, flood and other hazard insurance
<br />premiums, as required;
<br />H to interest due under the Note;
<br />OURTH, to amortization of the principal of the Note;
<br />FWM, to late charges due under the Note.
<br />4. Fine, Flood and Other Hazard froaraace. 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 shalt 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 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 />,
<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 />i 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 thelpurchaser.
<br />S. P'IMM"aHoa fad Maiatefance 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 />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 of 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 />ti. CIlWW to Borrower and ii rotecdoa of Lendees Rights in the Properly. 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 Lender's rights in
<br />' -
<br />the Property (such as a proceeding id bankruptcy, for condemnation or to enforce laws or regulations), then Lender may do and
<br />'
<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 =0 =" o disburscd by lender under this Paragraph shall Wcowt: an addido" jud debt of Borrower and be secured by this
<br />I
<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 />«
<br />•
<br />7. Coademaatlon. 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 />y
<br />ment. Lender shall apply web 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
<br />f!f
<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 />debtedness under the Note ai►d this Security Instrument shall be paid to the entit -v legally entitled thereto.
<br />S. Fees. Lender may collect fees and charges authorized by the Secretary.
<br />Page 2of4
<br />J
<br />
|