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90-' 105220
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<br />1. Pays"' of Pd adpal, Isstaral dear Lela CMargsi Borrower shall pay when due the principal oi, and interest wt, the debt
<br />wklsnced by the Not@ and We charges due unbar the Note.
<br />a, Monthly fty "mats of Taxaa, IastaAM aatr 1I'Igtatr CJrargea. Bortower shall include in each monthly payment, together with
<br />the principal and In11c"" as set forth in the Note and any We charges, an installment of any (a)
<br />taco and special assessments
<br />IrAW or to be levied against the Property, (b) k.asohold paymeals or ground feats on the Property, and (c) premiums for insurance required by Paragraph 4.
<br />Each monthly fe Weft tl for items (a), (b) and (o) Mall equal one•iwdfkb of the annual amounts. o reasonably estimated by
<br />Leader, piss aq amount sufReknt to maintain an additional�ce of not more then one -sixth of the estimated amounts. The
<br />fail Mutual amount for each item shall be accumulated by Lender within a period ending one month before an Item would
<br />become delinquent. Lender shall hold the amounts collated in trust to pay Items (a), (b) and (c) before they become delinquent.
<br />If at may time the lotel of the payments held by Lender for items (a), (b), and (c), together with the future monthly payments
<br />for such item payable to Lender prior to the due dates of such items, exceeds by mon than one -sixth the estimated amount of
<br />payments required to pay arch Items when due, and if payments on the Note we current. then Leader
<br />shall either refund the
<br />grow ova one•sixlh 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).
<br />(b), or (c) is
<br />insufficient to pay the Ilan when due. then Borrower sha8 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 her
<br />designee. Most Security Instruments insured by the Secretary are insured under programs which require advance payment of the
<br />entire inortpage insurance 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 include
<br />also either: (i) an installment of the
<br />annual 0 ttc insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage
<br />Insurance ` um lF this Security Instrument is held by the Secretary.
<br />Each monthly installment of the mortgage insurance
<br />premium sl be in an amount sufficient to accumulate
<br />the full annual mortgage Insurance premium with Lender one month
<br />prior to the date the full annual morigage insurance premium is due to the Secretary. or if this Security Instrument Is held by the
<br />Secretary, each monthly charge shall be in an amount equal to one twelfth
<br />- of one -half percent of the outstanding Principal
<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 an installments for items (a), (h) and (c) and any mortgage insurance
<br />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 Properly or its acquisition by Lender, Borrower's account be
<br />shall
<br />erel ted with any balance remaining for W installments for items (a). (bl and (c).
<br />3 A Meatlaa of Psyttets b. All payments under paragraphs I 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 tht Secretary
<br />Instead of the monthly mortpge insurance premium, unit= Borrower paid the entire mortgage insurance premium when this
<br />Securi instrument
<br />"r
<br />was signed;
<br />Pry�� to any taxes, special assessments, kasehold payments or ground rents, and fire. flood and other hazard insurance
<br />ums, as required;
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<br />to Interest due under the Note;
<br />, to asnortiratlori of the principal of the Not@;
<br />JG
<br />to We charges due under the Note.
<br />4. Wks. Wind ear Other Nazar/ lmnnwe. Borrower shall insure all improvements on the Property, whether now in existence
<br />or subsequently erected. "ma any hasards, casualties. and contingencies, lnciuding 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
<br />to the extent rtgnircd by
<br />the Secretary. All insurance shall be carted with companies approved by 1 tnder. The insurance policies and any renewals shall
<br />be held by Leader and shall include low payable clauses in favor of, in form
<br />and a acceptable to. Lender.
<br />In the event of loss, Borrower shad give Lender immediate notice by mall. lender may make proof of loss if not made prompt-
<br />Ay by Borrower. Each insarace company concerned Is hereby authorised directed
<br />and to make payment for such loss directly to
<br />Leader. instead of to Somme 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
<br />;
<br />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 applicason of the proceeds to the principal shall not extend or due
<br />postpone the date of the monthly
<br />Payments which are related to in Paragraph 2, or change the amount of such payments. Any excess insurance proceeds over an
<br />amount required la pap all ontstaadimg isndebttdneu under the Note and this Security
<br />t
<br />ly entitled thereto. Instrument shall be paid to the entity k'gld-
<br />In list event of foreclosure of this Security Instrument or other transfer of title it) the Property that extingva!*ea the in-
<br />1 debtattaerrs. ail eight. We and ustetaeu:' Of Borrower in Will fro insurance in force
<br />'
<br />policies shall pass to the pur►la�.
<br />1 S. Nassrntiaa aatr Mst�asstafaes id tie
<br />� PmWntt,, B,aaanuhslls. Iiorratr shall not commit waste ,;a r]tstroy, damage or
<br />subtxawuady chute the U+tnaperty of allow the Prag}•r,uy to Q%`tonorste. resm"Able
<br />wear and tear c%ivpko_j 1 ender maw inspect
<br />the pcagerty if the property is ►acdu or abandoned or the ban tm to delea. Lender may take reauxurbk actton to M.D(ut and
<br />prtri esvt cu ff vacant or abandow4 property. U this Security gnw,-tudent is %tn a teasehow. Borrower
<br />shall comply wrktt it-t►a a►rovi-
<br />Mom of rAv itaae. If Borrower apptsrrp fee title to the Propaesul,. i.:te Hasetsald and fee late shall not be merged ur%Wr . ►:ender
<br />agrees to WLK' v i go in writing.
<br />•. Clatlpa N Beer►awdw afar PtoleetMa oaf l,aarse's Rigitls In Ilse Pro'ettt. Norrower %hall pay all governmental or munwipsil
<br />cchs ilioa�lhat are nut included in Paragraph 2. Borrower shalt these
<br />vad�t�a�a�Gmpso= pay obligations on unse drrcol!. to the
<br />--•- �,- «••••.... «...� .., s+y .nwwv.uretve�y a11CO i.,mder-s mu test in the Property. upon 1 ess o,& re-
<br />qu Borrower shall promptly ruttish to Lender IMipts evidencing these payments
<br />If Borrower falls to make these palm exits or the payments required by Paragraph 2, or lail% to perform any ,veho :o.enent, and
<br />agraemmis contained in this Security Instrument. or there is a legal presredin# that may significantly atim I ender', rights in
<br />the Property (such as a proceeding in bankruptcy, for condmonation or to enforce IawA ,►r regulations), then Imam rseay do and
<br />pay whatever is necessary to Protect the value of the Property and Lender's rights in the Property, irktudins pavinent of rase%,
<br />- -_-
<br />hazard insurance and other items mentioned in Paragraph 2.
<br />Any amounts disbursed by lender under this Paragraph shall become an additional debt of ticnruwer and be %ecured by ihi%
<br />Security Instrument. These amounts shall bear interest from the date of disbursement. at she Note rate. and at the option
<br />of
<br />Lander. shall be lawedlately due and payable.
<br />7. CaareanNOks. The proceeds of any av►ard or chits got damages, direst or cvnsequerniaf, m conwtit i with any Londem
<br />nuWa or other taking of coy part of the properly, or for
<br />cunveyaak'e in place of wridI sr►nat,vn, are tserebv assigned and %hall he
<br />paid to Lender to the esaeal of the full amount of the itidetxednns that remsuns unpaid under the Nt"e and ih►% Se%un1% In%tru
<br />menf. Lender shall apply swh proceeds to the redu:ticm of the
<br />indebtedness under the Note and fin %tinurrty Instrument, t►r%i to
<br />any delinquent amounts applied in the order t%rovuled in Paragraph 1. and then a+ prepasmera „I' Principal Am apphcaraa► ,id
<br />the ptoceods to the principal shall not extend %n posipr.ne the due dale
<br />f'
<br />of the rnonthh vma narnt%, whi.h ,ire retened h. u,
<br />Pwagtagsh 2, Or change the amount of such palnient%. Any mots pukeedc a a
<br />%er an m►-uut reyuirrd i„ pre alt �au%tan,ling its
<br />debtalnem utsder flit Note and this Smurely
<br />Instrument .hall he paid its nf,r entire nrealih mallard rhrvrd,,
<br />g. few Lender may ctalkct fees and charge% authorited M the ,%%rctan
<br />lyre
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