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<br />90-- 105583
<br />1, Paysnsal of Pfiaclpsd, lttteftO tend Late Ckarge. Borrower shall pay when due the principal of, and interest on. the debt
<br />evldenci d by the Note and Into charges due under the Note.
<br />2. Moatkly Payatteals of Taxes, lasarame stM Olker Chagas Borrower shall include in each monthly payment, together with
<br />the principal and interest Its set forth in the Note and any late charges, an installment of any (a) taxes and special assessments
<br />levied or to be kvkd against the Property, (b) keschold payments or ground rents on the Property. and (c) premiums for
<br />Insurance required by Paragraph 4.
<br />Each 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 balance of not more than one -sixth of the estimated amounts. The
<br />full annual aasount 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 suck items payable to Lender prior to the due dates of such items, 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 />excess 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 />in niflklent to pay the Item when due. then Smower 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. "Secretarv" means the Secretary of Housing and Urban Development or his or her
<br />designee. Most :Security Instruments insured by the Sec-Teary are insured under programs which tequire advance payment of the
<br />entire mortgage Insurance premium. It this Security Itaisurnent is or was insured under a program which did not require advance
<br />payment of the entire mortgage insurance premium, earn each monthly payment shall alai* include either: (i) an installment of the
<br />annual mortgage insurance premium to be paid by Lender to the Secretary, or iiiil a monthly charge instead of a mortgage
<br />Insurance premium if this Security Instrument is held by the Secretary. Each motamy insusibstent of the mortgage insurance
<br />premium vhall be in an amrsunt 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 />3a'retafy, 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 Borrower tender to Lender the full payment of all sums secured by this Security Instrument, Borrower's account shall be
<br />credited wit the balance remaining for all Installments for items (a). (b) and (c) and any mortgage insurance premium
<br />installment flat Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to
<br />Marrow". sakm4iliately p1of to it foreclosure safe 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 />9. AMMe atlon of Pare as sift All payments under paragraphs I and 2 shall he applied by Lender as follow,,:
<br />EM, to the mortgage insurance premium to be ptucl by Lender to the Secretary or to the monthly charge by the Secretary
<br />dostead of the monthly mortgage insurance premium, unless Borrower paid the entire mortgage insurance pm mum when this
<br />Security Instiument was signed;
<br />SpM , 110,411Y taxes, special assessments, leasehold payments or ground rents, and fire. flood and other hat and insatrsom
<br />premiums, as required;
<br />THI . to interest due under the Note;
<br />FDU . to amortization of the principal of the Note;
<br />FIFIjj, to late charges due under the Note.
<br />4. Fin, Flood aM OtrerHtutud lantaaee. Borrower shall insure all improvements on the Property, whether now in existence
<br />or subsequently erected. against any harards, c:tuualties. 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 *MII also insure all
<br />improvements on the Property, whether now in existence or subsequently erected, ag„sinst loss by floods to vNew tent required by
<br />the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and any renewals shag
<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 Iota. Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made ptompt-
<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. All or any pan of the Im unwee proceeds may be applied by Lendier, at its
<br />option. either (a) to the reduction of the indebtedness under the Note and this security Instrument, first qo any delinquent
<br />amounts applied in the order in Paragraph 3, and then to prepayment of prinapal, 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 aL outstanding Indebtedness under the Note and this Security Instrument shall be paid to the entity legal -
<br />It,, 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. Pnat':vallar OW Maitatetsaace of eke Progeny. Leaaeiolds. Borrower shall not commit waste or destroy, damage or
<br />substantially change the fl aoperty of allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect
<br />i mite property If the propeNr'!rr n - twoof or aahandevrwd .as vow "n iv in drrurh ! r_a tic _,nay tale reast..table io p,v iawi oil
<br />Preserve such vacaat or a4'+irna mod property. If this Security Instrument is on a kuretold. Borrower shall comptp with the prosy-
<br />sions of the lass. If Borrower acquires fee title to the Pfopeny. the k=eboW a" fee title shaft not be merged unless leader
<br />agrees to the 0 -0 in writuts.
<br />6. Chanson to suriawae and Hotaetlaa of [Antler's fatless Ira no Pa.rsWits n..e...,.,... a.11 all ..............r .. —I
<br />charges. lines and impositions that arc not included in Zisgrapb 2. fdlorro+ter vinalW pay these obligations on come directly to the
<br />entity which b owed the payment. If failure to pay would advendy affect Linder's Interest in the Property. upon Lender's re.
<br />quest Borrower shall promptly furnish to Leader 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 />agreeraents contained In this Security Inurument, or 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 toenforee Was or regulations). then tender may do and
<br />pay whatever h necessary to protect the value of the Property and Lender's fights in the Property. Including payment of taxes.
<br />haard insurance and oche item mentioned in Paragraph 2.
<br />Any amounts disbursed by lender under this Paragraph shall become an additional debt of Borrower and be secured by that
<br />Security Instrument. These amounts ship bear interim from the slate of disbursement, at the Note rate. and at the option of
<br />Leader. sball be iaunediately due and payable.
<br />7. Cleaiassuea lee. The proceeds of any award or claim for damages, ditect or consequential. in conne.tion with any condem-
<br />nation or other taking of any pan of the Property, or for conveyance in place of condemnation, ate hereby assigned and .hall he
<br />paid to Leader to the extent of the full amount of the indebtedness that remains unpaid under the Note and this %ecurnv. hastru-
<br />meat. leader shall apply such piameds to the reduction of the indebtedness under the Note and thst %e.unty Instrumeni. tits, Its
<br />any delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment of prinupal my application of
<br />the proceeds to the principal shalt not extend or postpone the due date of the monthly payment., wha.h ,are referred to in
<br />Paragraph 2. or change thearnount of such payments. An) excess proceeds liter all amount require( it, pat all (vitatandurg ur
<br />debtcdncu under the Note and this %ft -unity Instrument shall he paid to the emit% tgtillt ci,utled nccict,.
<br />8. Fom lender may collect fecw and charges authorised by the % t•retar)
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