|
r �
<br />90- 105629
<br />1. Payment of Prlaelpal, Interest and late Charge. Borrower shall pay when due the principal of, and interest on, the debt
<br />evidenced by the Note and late charges due under the Note.
<br />3. Monthly hymmis of Talus, ltuneaace ad Qlher Charges. Borrower shall Include in each monthly payment, together with
<br />the principal and interest as set forth in the Note and any late charges, an installment of any (a) taxes and special assessments
<br />levied or to be levied against the Property, (b) leasehold payments or ground rents on the Property, and (c) premiums for
<br />insurance required by Paragraph 4.
<br />Each waithly installment for items (a). (b) and (c) shall equal one - twelfth of the annual amounts. as reasonably estimated by
<br />Leader. plus an amount sufficient to rnaintain an additional balance of not more than one -sixth of the estimated amounts. The
<br />fuB annual amount for each item shall be accumulated by Lender within a period eadir ;g one month before an item would
<br />i bamme delinquent. Lender shall hold the amounts coflr cted in trust to pay items (a). (b) and (c) before they become delinquent.
<br />If at any tinn 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 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 roads by Borrower for item (a), (b), or (c) is
<br />Insufficient 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 anu Urban Development or his os her
<br />designee. Most Security Instruments insured by the Secretary are iv ijrcd 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 mortgage insurance premium, then each monthly payment shall also include either: (il an installment of the
<br />iimmud 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 pr !mium with Lender one month
<br />prior to the data the full annual mortgage insurance premium is dtte 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 of one-half percent of the outstanding principal
<br />balance due on the Note.
<br />j If Borrower tit ndets to Lender the full payment of all sums secured by this Security Instrwaneni, Borrower's account •Ithall be
<br />credited with the balance remaining for all installments for imno. (.it, (b) and (c) and any mortgage insurance premium
<br />In•fa)lmenl that I trifler has not t+ttcotne obligated to pay to the Serrr!;rry, and !_ender shall promrtl� reiurd ar.y cu s funds to
<br />Borrower. 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 far items (a►. (b) and (c)
<br />3. AppYeatloa of Payments. All payments under paragraphs I and 2 %hall be applied by Lender as follow,.:
<br />E=, to the mortgage insurance premium to he paid by 1 ender to the Secretary or to the monthly charge by the 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 />:
<br />SECON , to any taxes, special assessments, leasehold payments or ground rents, and fire. flood and other hazard insurance
<br />premiums, as required,
<br />to interest due under the None;
<br />IF to amortization of the principal of the Note;
<br />to late charges due under the Note.
<br />d. IFMe.Ii00dstad QMrer Hasrard lawnere. Borrower shall insure all Improvement,. on the Property, whether now in existence
<br />_
<br />=:
<br />or subsequently erected. against any hazards, casualties, and contingencin, including tire, 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 suhsequently erected• against loss by floods to the extent required by
<br />the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and any renewals shall
<br />ii■�
<br />be held by Lender and shall include loss payable clause in favor (it, and in a form acceptable tn, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Leadet mat make pr(mf of loss if not made prompt-
<br />ly by Borrower. Each insurance company concerned i► hereby authorized and dirtoW to make payment for such loss directly to
<br />Leader, instead of to Borrower and to lender jointly. All or any part of the Insurance proceeds may be applied by I ender, ao i:%
<br />option, either (a) to the reduction of the indebtedness under the tiote and this Security IWITUmenl, first to any dehnquer.,
<br />+
<br />amounts applied in the order in Paragraph 3, and then to prepayment of principal, car lb) to the restoration or repair of she
<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 1, our change the amount of such pasrnrn :s. Any excess insurance proceeds over an
<br />"-
<br />amount required to pay all outstanding indebtedness under the Note and this Securnv Instrument shall tie paid to the entity legal.
<br />ly entitled thereto.
<br />In the event of foreclosure of this Security Instrument of other +rarnftr of mie to the Property that extinguishes the in -
<br />debtedness, all right. title and interest of Borrower in ami to insurance policies fit force shall pass to the purchaser.
<br />S. Petitions lea lead Maiatesume of the Property, l.es"olds. Borrower %hall not commit waste in destroy, damage or
<br />substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. I ender may inspect
<br />the property if the property is vacant or abandoned or the loans is in default. I ender may take reasonable action to protect and
<br />preserve such veeant or abandoncd property. If this Security Insuunu.rs n un i lcaxhuld. 1;... r.; :. ;r . :,a ;l comply with the piw. i
<br />sions of the lease. If Borrower acquires fee title to the Property, the leasehold and fee title %hall not he merged unless I ender
<br />agrees to the merger in writing.
<br />i. tvultes to sotrrower and Protermis of Letsaer'a Rights In the Property. Borrower %hall pat all governmental or municipal
<br />charges. fines and impositions that are no., included in Paragraph 2 Horrower shall pay these uNsgauom on tune dirmily s+• the
<br />entity which is owed the payment. If tues'u: a to Tay would adverwty atfoxt Lender's Interest In the Property. upon I erider'i re•
<br />quest Oorrower shall promptly furnish to Londe-t recrint, evidencing thew paytntri ,
<br />It Borrower faih to make these pavtmen t -i nr the r+a!,•au :n s required by Patagrart: :. w tad, it- volorm any •vr7r.rt coscnani, and
<br />__- agreerrlenrsaxtuirned in this Security I :i�eraaatent, or there is a legal promeding ihd+ rrac,. +s,gtsif:cantly altar 1 eider's nKihe -.
<br />the Property tsuch ass proceeding sn havvhuptcy, for condemntusr. 'a 1a enforct laws o! -eyulinrnal. then 1 ender may :Jo ant:
<br />whateso ns ne
<br />- pay •essary to prWtrt the value of the Property and t cRdcr's syf?tts In the I'rv7ttr•r, including payment of nas'es.
<br />hoard insurance and other items mentioned in Paragraph 2
<br />Any amounts disbursed by lender under this Paraipraph shall he, time at, ,iddo %k-nal debt of Borrower and he wt:uird by rr,•.
<br />Security Instrument. These amounts shall bear interest from rt►e dare of disbursement, at !he Vote rate, and at the +•fti'K +n, •t
<br />Lender, shall be immediately due and payable
<br />7. Co ndewaatloa. The proceeds of any award or claim for damatln, durst ,tr .onw Iucnnas, in .untie, n „n w Ith any .ondcni
<br />L
<br />nation or other taking or any part of the Property, or for conveyance in piece tit rondensnanon, are heieb,, ..,,signed sod .hall he
<br />paid to Lender to the extent of the full amount of the indebtedness that remains unpaid ender the Noic and tills ~stunt y lnsriu
<br />.r
<br />meet. Lender shall apply such proceeds to the m ducuon of the indebtedness under the Note and this tiesuros lustiuutcnl, first t.+
<br />h
<br />any delinquent amounts applied In the older provided to Paragraph 1, and then to prepayment of pr+nupal errs appit.arion,•f
<br />the proceeds to the principal shall not extend of poiilptine the due date tit the mordhh pasmrnl, whi %b .tic retcitud to ,„
<br />Paragraph 2. ar change the amount of such pasments Am cites pri,.eeds user an anuauu rc,suos,I to t•.fs .,tr .v,t,i,sr,dn,v ,u
<br />debtedrieus under the Note and iliis tih•uuts ImItulneni shall he paid to the rnt,n I, gaits „ i.its,1 +i,, ,ci.•
<br />”
<br />•. Ions. lender may collttit tees and "halves authimicd hs stir `cstaiats
<br />
|