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<br />130-- 105652
<br />1. Payt•est of Pdaclpal. lalmesl aW Late CbuV. Borrower shall pay when due the principal of, and interest on, the debt
<br />oWdeneed by the Note and late charges due under the Note.
<br />T, Meaft fty Is of Tatter, la wnwe aat101ber (•INWXn. 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 Properly, and (c) premiums for
<br />insurance required by Paragraph ,.
<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 wriount sufficient to maintain an additional balance of not more than one -sixth of the estimated amounts. The
<br />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 bold 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 item 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 ova 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), fb), or (c) is
<br />insufflident to pay the item when due. then Borrower shall pray too 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 Imirument, "Secretary" means the Secretary of Housing and Urban Development or his or her
<br />desigasee. Most Security Instruments insured by the Secretary are insured 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 tequkre advance
<br />psymew of the entire mortgage insurance premium, then eac-fit monthly payment shall also include either: (ii) an imWiment of the
<br />annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge znst.ad ,v` a mortgage
<br />insurance premium if this Security Instrument is held by the Secretary. Each monthly installment otr aftse mongage insurance
<br />premium shall be in an amount sufficient to accumulate the full annual mortgage insurance premiuc.a 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 />Secretary, each monthly charge shell 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 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 all installments for items (a), (b) and (c) and any mortgage insurance premium
<br />installment that Letider has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to
<br />Borrower. Imrrxdlaieiy prior wr, a forcclosurc sate of the P;op:rty or gn acquixitinn by Lender. Borrower's acenunt .hall be
<br />credutwl with any balance remmaing for all installments for items la). (h) and (c).
<br />3. A//YcaUaa of Paysensls. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />EUM. to the mortgage insurance premium to be paid by Lender to the Secretary or to the monlh(s c --harge hs the Secretary
<br />instead of the monthly morlgatge Insurance premium, unless Borrower paid the entire mortgage Insurance rrerntium when this
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<br />Secur4y Instrument was signed;
<br />K-1C=. to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance
<br />t .
<br />preniums, as required;
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<br />to interest due under the Note;
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<br />�, . to amortization of the principal of the Note;
<br />FIFTH, to late surges due under the Note.
<br />4. Fine. Flood mW 01her Hasard laaan rice. Borrower 'rli.r; insure all improvements on the Property, whether nos% in existence
<br />or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires insurance.
<br />This insurance shall be maintained in the amounts and for the penods that Lender requires. Borrower shall also insure all
<br />Improvements on the Property, whether now in existence or subsequently erected, against loss by floods to the extent required by
<br />the Secretary. All insurance shall he carried with companies approved by I ender. The insurance policies and any renewals shall
<br />be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />In vlu event of loss. Borrower than give Lender immedisic notice by mail. Lender may nuke proof of loss if not made prompt-
<br />ly by Borrower. Each imuranee company concerned is hereby authorized and directed to make payment for such toss directly to
<br />Lender. Instead of to Borrower and to Lender jointly. AB or any pan of the insurance proceeds may be applied by ( ender, at its
<br />option. either qa) to the reduction of the indebtedness under the Note and this Security Instrument, rent to any delinquennr
<br />amounts applied rrt the order in Paragraph 1, and then to prepayment of principal, or Ih) to the It espvratiun or repair of the
<br />drama rd property. Any application of the proceeds to the principal shall not extend or postpone the due date of the month!%
<br />payments which are referred to In Paragraph 2. or change the amount of such pavmrnts. Any excess insurance proceeds over an
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<br />amount required to pay all cum aiding indebtedness under the Note and this Security )nsaument shall be paid to the entity legal-
<br />ly entitled thereto.
<br />In the event of foreclosure of this Secutr..v Instrument or other transfer of title iv the l'rnvvr•rs that extinguishes the in-
<br />debvedricu, all right, title and smtrest of Borrower in and to insurance policies in dttree •41hall pat% to the purchaser.
<br />S. Fesaer"dom gad Maiasmi ace of lbw Ptroperip, I vra:wholds. Borrower shall r.,.,. ;emmit waste or destroy, damage or
<br />substantially change the Property or allow the Properly h* deteriorate. teasonable wear and tear excepted Lender may inspect
<br />the property if utte property is vacant or abandoned or the loan is to tore "+alt. l ender may take reasonable action to ptuimi aiiJ
<br />preserve such s;1camt or abandoned property. if this Sttcutity Imitu niam - an a leasehold, Borrower shall comply with the prove•
<br />slow of the lessr. If Borrower acquua lee title to the Pc %petty, the kauhohl and lee title shall not be merged unless lender
<br />Wes to the merger in writing.
<br />b. Cbwm 10 IsOrrower air/ Prowirtlas of I.erider's Rlgbta la the Pra'uq. Borw%wes shall pay all governmental 01' municipal
<br />chugs. finer and mpositiuns that are not included to Paragraph 2. oe oset shall "y these tiBUganons tin time tiireniy to tine
<br />edtitlr which is owed the payment. If falutc to pay would advcr%ely allvo I endo,s mietest in the Property, upon I ender'% re
<br />qun4 Borrower shall promptly futnith to lender recetpta eviderwing these payments
<br />If Borrower fails to make these payments or the payments required by Paragraph :, o, ad. to perform any other .incoant.. and
<br />agreements contained in this Security Instrument, or there n a legal proceeding that may %ignif cantly affect 1 ender'% rights in
<br />the Property (swh as a pcoceeduil in banktupicy, for cundemnaumi a•r io enforce laws or tegutaarons). then l ender may do And
<br />pay whatever is necessary to protect the value of the Property and l ender'% tights in The 1'mperts mcludinti payment of tun,
<br />hazard insurance and other items mentioned in Paragraph 2
<br />Any amounts disbursed by lentler under this Paragraph shall become an additional debt of Bottoliler and he %muted by this
<br />Security Instrument. These amount• shall bear nueress from the date of disbutsetnent, at the Note rate, and at the option of
<br />Lender, shall be unmediasely due and payable.
<br />7. Caa/eaiaatloa. The proceeds of any award or iJaim for damages, direct tit consequential, in %onnertinn w ith an% %tindmi
<br />L nation or other taking of any put of the Properly, err for cone >ance to place art condemnation, are hercM a %%tµnrd +nt1 .hall he
<br />paid to lender to the extent tit the full amount of the Indebtedness that remain, unpaid under the Note and tht% tir%urtn Insnti
<br />ment. Lender ►hall apply such pf%keeds it, the reduction of the tndchtrdnc%% under the Nate and the% letur rrs In %� r:a:.ut, t v %t i„
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<br />any delinquent amount applied to the ordet provided in Paragraph 1, and then t,- )itepatomew „ I vrrtiord Nn% atgdn autat art
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<br />the prttcttd% to the ptocipal shall not extend art pt•sipune the due date ,•t the mitnthl% pasntcm %, whr,h err reierrctl 'it
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<br />Paragraph 2, of . hange the amount of such payments Am e%%c%% pro%ecd% u%ei All +ni„uttt reyurtt•%I ❑. 11.1% .4:1 o
<br />dehtedneu under the Note and this tieturrty Instrument %hall he i,+id t„ the enrin lettally eutttled thereby
<br />g. leas. 1 etaler mail %nikst ftv% +and thatltr %+utJr„nfed h% the tier tarn
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