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<br />90- x.05327
<br />Each tnout Illy installment for items (a). (b). and (c) shall equal one - twelfth of the annual amounts, us reasonably estimated
<br />by Lender, plus an amount sufficient to maintain an additional balance of not more than tme -sixth of the estimated amounts.
<br />The full annual 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 collected in trust to pay items (a). (b). and (c) before they become delinquent.
<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 />for Such items payable to Lender prior to tine due dates of such Items. exceeds by more than one -sixth the estimated amount
<br />of payments required to pay such items when due, and if payments on the Note are currem, then Lender shall either refund
<br />the excess over one -sixth of the estimated payments or credit the excess over one - sixth of the estimated payments to subscgt>em
<br />payments by Borrower„ at the option of Borrower, If the total of the payments made by Borrowtc t,.t item (a). (b), or (c)
<br />As insufficient to pay the item when dine,. tbo I�tttrtower shall pay to Leader any aemouto necessary tv taaay. the ckfscfancy
<br />an I or before the date the item becomes due.
<br />As vied 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
<br />the entire mortgage Insurance premium. If this Security Instrument is or was insured under a program which did not require
<br />advance payment of the entire mortgage insurance premium, then each monthly payment shall also include either: (i) an installment
<br />of the annual mortgage insurance premium to be paid by Lender to the Secretary. or (ii) 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 dente the full annual mortgage insurance premium is due to the Secretary. or if this Security Instrument is held
<br />by the Secretary, each mombly charge shag be in an amount equal to onc- twelfth of one -half percent of the outstanding principal
<br />balance due on the Note.
<br />If aorrower tenders to Lender the full payment of all sums enured by this Security Instrument, Borrower's account shall
<br />be 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 funds
<br />to Borrower. Immediately prior to a foreclosure sale of the Propeny or its acquisition by Lender, Borrower's account shall
<br />be credited with any balance remaining for all installments for items (a). (h), and (c).
<br />3. Appllealloa of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />liirsi, to the mortgage Insurance premium to be paid by Lerida to the Secretary or to the monthly charge by the Sectary
<br />Instead of the monthly mortgage insurance premium. unless Borrower paid the entire mortgage ituarance premium when this
<br />Security Instrument was signed;
<br />Spa„ -n�1, to any taxes, special assessments. learebold pay rtoertts or ground rents. surd lore. flood attd other hasard insurance
<br />premiums, is required;
<br />Third. to interest due under the Note;
<br />ourth, to amortization of the pdocipal of the Note;
<br />fifth, to late charges due under ft Nose.
<br />d. We, Flood and OIMer Hasard fewrance. 'Barrower shall insure all improvements on the .Property, whether now in
<br />existence or subsequently erected, against sov hx.ut.r.ds. casualties, and conringencics, including fire, 'For which Lender requires
<br />insurance. This insurance shall be maintained do Me amounts and for the periods that Lender requives. "ottrover shall also
<br />insure all improvements on the Prop pordy. whether now in existence or subsequently erected. against Ims In "At,.Ja the extent
<br />required by the Secretary. All insurance shall be carried with Companies approved by Q ender. The insurance p+oyrcics and any
<br />retsewals shall be held by Lender and shall inclwd;�: loss payable clauses in favor of, and in a form acceptable to. Undo .
<br />In the event of loss. Borrower shall give Leader immediate notice by mail. Lender may make proof of loss if not nsailc
<br />promptly by Borrower. Each insuramv company concerned is hereby authorized and directed to make payment for such loss
<br />directly to Lender, instead of to Borrower and to Lender jointly. All or any pan of the insurance proceeds may be applied
<br />by Lender. at its option. either (a) to the sodttction of the indebtedness under the Note and this Security Instrument, first to
<br />any delinquent amounts applied is the order In Paragraph 3. and then to prepayment of principal. or (b) to the restoration
<br />or repair of the damaged property. Apy application of the proceeds to the principal shall not extend or postpone the due date
<br />of the monthly payments which are referred to in Paragraph 2, or change the amount of such payments. Any excess insurance
<br />proceeds over an amours required to toa� all outstanding indebtedness under the Note and this Security Instrument shall be
<br />paid to the entity legally entitled thereao.
<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the
<br />Indebtedness, all right. title and interest of Borrower in and to insurance policies in force %hall pass to the purchaser.
<br />S. Prsaervatloa nail Maiateaasce 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
<br />and preserve such vacant or abandoned property. If this Security Instrument is on a leasehold. Borrower shall comply with
<br />the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless
<br />Lender agrees to the merger in writing.
<br />6. (hargaa to ftrr WW aai Prole dOl0 of !.ender'$ ftltls ld IM Property. But rower shall pay all governmental or municipal
<br />charges, fines and impositions that arc not included in Paragraph 2. liortower %hull pay these obligations on time directly to
<br />the entity which Is owed the payment. If failure to pay would adversely affect I endet's interest in the Property. upon Lender's
<br />request Borrower AM promptly furnish to Lender receipts evidencing these payments.
<br />If Barrgwer Rally to m4kc t.ktese payments or the payments rea,(uired by Paragraph 2, or fail► to perform any of ber , ao%cnarcc,
<br />mi agxegnw as contained in this Security Instrument, or there is a legal p towvedinS that may significantly OW I .endcr's ryllw%
<br />in the Petapevtty (such as a proceeding in bankruptcy, for condemnation ter to enforce laws or reguJanonrl., theta I ender may
<br />do and pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, including payment
<br />of taxes, hazard insurance anal other items mentioned in Paragraph 2.
<br />Any amounts disbursed by Lender under this Paragraph %hall heconte an additional debt of Iforrimer and tit secured
<br />by this Security Instrument. These amounts shall twat interest horn the date of disbur,crncnt, at the Note rate, and at the
<br />option of Leader, shall he immediately due and payable.
<br />7. Condemnation. The pro cecds of any award or claim lilt daoragc., dnc.t „r .onscyuenual. m .onnc.tum Nuh alas
<br />condennation ur oilier taking of any part of the Nropert%, or tat rocs% "Al cc lit pla%:r ill ..oe IIeIC11% a..tgued
<br />and shall be paid to I coder to the extent tit the full taurount of the rndcblrdnc%% that remain• unpaid undet ill, %ii1c sod till.
<br />%evunty Instrument. 1 cadet shall apply such pttKtvd. t1, tloe teductta►n of the rndrhtcdne.• under the Nme and iii. 1%e.unts
<br />Instrument. first to any delinquent amount% applied nt the order pros rded u% I'araKraph t, .and then to ('aepa. mint .•t la n►. spat
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