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<br />RE- REcoRbLu 90- 105181-- 90-- 1 4'7
<br />Fach monthly installment for items (a), lb). and Ic) shall equal one- twelfth of the annual amounts, as reasonably estimated
<br />by Lenda. plus an amount sufficient to maintain an additional balance of not more than enc•sixth of the estimated amounts.
<br />The full annual amount for each item shall be atv umulaied by Lender within a period ending one month before an item would
<br />becxtsrte delinquent. Lender shall hold the amounts collected in trust to pay items (a). (b). and (c) before they become dcli Ofeetu.
<br />If at any time the total of the payments held by Leader for items (a), (b), and (c). together with the future monthly payments
<br />for such items payable to Leader prior to the due dates of such items. exceeds by more than one -sixth the estimated amount
<br />of* payments required to pay such items WWII duc, and if payments on the Note aft current, th" I .ender shall either refund
<br />the excess over oete - sixth of the calmafed payments or credit the excess over one -sixth of the esilmotod 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)
<br />is insufficient to pay the item when due. then Borrower shall pay to Lender any amount necessary to nuke up the deQciemy
<br />on or before the date e1e item becomes due.
<br />As used in this Security Instrument. SecMaay means the Secretary of Housing and Urban Development or his or her
<br />designee. Mots Security Itulfumenis insured by flhe Secretary are insured under programs which regfute advance pal=cnt of
<br />the entire mortgage Insurance preatuuas- If dais lSeCw=y Instauniewa is or was insured mender a r rograss which did not require
<br />advance payment of the entire MOKSatir iasascaorX Ifsrzrtiuhtn. then each t=xdhllr payment shall ate W afie ¢intact: (i)an Installment
<br />of the manual mortgage itwaame pre Wan to be pakl by Lcndeu to the Secretary. or (M) a monthly charge instead of a mortgage
<br />insurance premium if this Security IngnitmV ix bold by tlfe Secretary. Each monthly Installment of the nuwtgage insurance
<br />10mmium shtdl be in an anavuat sufficient tc. accumulate the fop annual ltmrrtgage insurance pnemiam with Leader one month
<br />p"r to the date the fun aaseual wartgage insurance pnypwn is clue to the Secretary. or if this Security Inalin nsent Is held
<br />by the Srstcrekari', each lah Oft cue A411 be in an amount rW6w A tv one - twelfth of one-half percent of the outcti►'rding principal
<br />Woo dun on the Note.
<br />If Borrower tenders to Lender the full paynw at of all sums secured by this Security Instrument. Borrower's account kib—Al
<br />be credited with the balance remaining for all installments fLw items (at. (b). and (c) and any mortgage insurance prewWrm
<br />inpola ctit that Lender has not become obligated to pay to kir. Secretary. and Lender Ahall promptly refund any excess fsua4s
<br />to Borrower. Immelfately prior to a foreclosure sate of tlw p.Y,,Vcrty or its acquisition by Lender. Borrower's account %WI
<br />be aredital with any balance remaining for alt installmenas Vo, items tot. (b). and (c).
<br />3. APPUROtm of M►aymststu. All payments under parttlllhjWh.s .f and : shall be applied by Lender as follows:
<br />i First, to the mortgage insurance premium to he paid bM ft.z,,%kr to Me Secretary of to the monthly charge by the Secretary
<br />lanced of the monthly mortgage insurance premium. unless Uorrowcr paid the trines a wrtgagc insumntx ptemiumt r0ten this
<br />Security Instrument was signed;
<br />Seto , to any taxes. special assessments, leasehold payments or ground rents, and fire, flood 4od other hward insurance
<br />premiums, as required;
<br />Third, to interem due under the Note;
<br />f'ourih, to unionization of the principal of the Note;
<br />Fifth. to late charges due usider the Note.
<br />4. Fier. FbW and Odwr HwAwd lau f&wt. Borrower shat! insure all improvements on the Property, whether now- in
<br />existence or subsequently erected, against any hazards. casualties. and contingencies. including fire. for which Lender requires
<br />Insurance. This itwuance shah be maintained in the amounts and for the periods thm Lender requires, Borrower shall also
<br />'- insure all improvements on the Property, whether now in existence or subsequently crated. against loss by foods to the extent
<br />required by the Secretary. All insurance shall be tarried with companies approved by Lender. The insurance policies and any
<br />renewals shall be held by Lender sad shall indlu k lost payable clauses in favor of, and in a form acceptable to. Lender.
<br />In the event of loss. Borrower shill give Lender immediate notice by mail. Lender may make proof of loss if not made
<br />promptly by Borrower. F.ach insurance company con mmed % -s herehy authorized and directed to make payment for such loss
<br />directly to Leader, instead of to Borrower and to Leader ydintly. All or any pan of the insurance pnxveds may be applied
<br />by Larder, at its option. either (a) to the reduction of the indebtedness under the Note and this Security Instrument. first to
<br />any delinquent atnous)ts applied to the order in Paragraph 3. and then to prepayment of principal, or (b) to the restoration
<br />3 or repair of the damttgW propwitj; Any application of the procceads to the principal shall not extend or postpone the due date
<br />of the mt>mMy paymefts trh(ch an referred to in Paragraph 2. or change tine amount of such payments. Any excess insurance
<br />proceeds over an amiso w required to pay all outstanding indebtedness under the !dote and this Security Instrument shall be
<br />paid to the entity ftaay entitled thereto.
<br />} In the event of foreclosure of this Smurity Instrument or tither transfer of title to the Property that extinguishes the
<br />iadebtedec". all right, title and Wettest of Borrower rn .sow. to insurance policies in force shall pass to the purchaser.
<br />s. Prestatvalioa aai btaialattlwtsY of a* IPstalperty. Lewriisiah. Borrower shall not commit waste or drheroy, damage or
<br />substantially change the Property or clew ofte 8r'n ;mrty lmr 3tterkxut, reaud►nable wear and tear ec, xrpned. Lender may in>fl►ec't
<br />( the pcopeirQy if the property is vatattt or olhrrr. u %turd or thlr scan is zit 4,.(,ault. Lender may tulle reasonable action to fr O.ift --t
<br />1 and Prescott such vacant or abamisswd if Ohl% 4*srounty Wwrument is on a leasehold. B•xrowes shall ctdr�f:4r with
<br />i the prusriwas of the lease. If Borrower acgQ'ilrels (cc title to tree Property. the leasehold and lee title shall nc4 be merged starlets
<br />Leader agrees to the sager in writing.
<br />1
<br />tl. Qarlp to sort~ and in her propifi7. 3101. tract ;hMA" pj iw gnu
<br />charges. fines and imposition% than ire not in:luded in Paragraph 2. Borrower %hall pry thew s"&#Atwnlss tic time diiel:tty to
<br />the entity which is owed the payment. If fadurc to pa m*em" adversely affect I ender'% interest to the Propm ni,, upon Lender's
<br />request Borrower shall promptly furnish to Lewder feceapts t%kien.ing these payments.
<br />If Bisrower fails to make these payrn sus or rile payments requited b?' Paragraph :. or faits ra perform any other ,err masts
<br />WW aQeatnrnts contained in this Security Instrrsnwo. a there na kSA;woctedmag char mtav wpstficantly affect 1 endet'w rights
<br />in the Property (such as a proceeding in bankrulyw-y.. f w ct►amiemaestmm Of ra COV4,Wct Lias or regulationO, then Lender may
<br />do and pay whatever is necessary to protect the value of the PtoW, attic (.ender'% rights in the Property. including payment
<br />of taxes. hazard insurance and other items nwritioaesi in Paragraph 2.
<br />Any amounts disbursed by Lender under this Paragrsph shall timome an additional debt of Bs►r1111Aer and he %ct:urcd
<br />by this Security Instrument. These amounts shall hear interest from the date of disbursement, at the Nme rate. and at the
<br />option of Lendet, shall be immediately due and payable.
<br />7. Co ademaaUoa. 'I he pr%kec'J% of Km award 111 .laltn ft+► dautagc%, dnco or %onseyucut►al, tit .onnc%itrn wnh env
<br />condcamaliun of other taking of affv full tit lice 1 1r4)fuit%, or ttrr con%V %ancc 131 plate of :clndcuulAuon, arc hett.•h% ituggled
<br />and shall he PAW to Lender to the V %tent of the full amount tit the rndchledne%% that rcImilm tlnrrrld under the Vote and th1%
<br />tiatiutity Instrument. I endet shall afsply mach pttweecf% 141 file tcauavon tit the udder 111c N111C .std 1h$% tic%un1%
<br />Instrument. first to any d►hitquent amouuty applied of the oldm•1 t %rum tdcd u1 I`at.tglaph 1. told that 141111c11.1%ntcnt of 111u►.1pal
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