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<br />90!' 1Q56'72
<br />1. Paytatat of Ptitselpal, Iselereel and Late Chargo. 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 />2. Moalkly Pgriearts of Tom, I saraaee wad alter Clia ges. 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 />Rack 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 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 foir 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 made by Borrower for item (a), (b), or (c) 0s
<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 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 />-e» sir+: mortgage insurance premium. If this Security Instrument is or was insured under a program which did not require advance
<br />paymom of the entire mortgage insurance premium, then each monthly payment shall also include either: (i) an installment of the
<br />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 date the full annual mortgage insurance premium h 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 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 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 Pfopertv or its acquisition by Lender, Borrower's account 4holl he
<br />credited with any balance remaining for all installments for items (a), (b) and (c).
<br />S. AppNe adon of Payweah. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />(UM, to the mortgage insurance premium to be paid by Lender 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 insuratece premium when thin
<br />'.
<br />Security Instrument was signed;
<br />to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard Insurance
<br />t
<br />A required:
<br />, to interest due under the Note;
<br />1..._
<br />R• to amortization of the principal of the Note;
<br />to late charges due under the Note.
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<br />4. Fire, Mood and Other Hatton! Itanttamee. Borrower shall insure all improvements on the Property, whether now in existence
<br />or subsequently erected, against any hazards. casualties, and contingencies, including fire, for which Lender requires la3urance.
<br />This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also insure 0
<br />Improvements on the Property. whether now in existence or subsequently erected. against loss by floods to the extent required b!;
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<br />the Secretary. All 11030rance shall be carried with companies approved by Lender. The insurance policies and any renewals shall
<br />be held by Lender and shall include loss payable clauses in favor of, and its a form acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made prompt-
<br />ly by Borrower. Each insurance company concerned is hereby authorized and directed 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 he applied by Lender, at its
<br />option. either (a) to the reduction of the indebtedness under the Note and this Security 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 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 procerdj over an
<br />amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legal-
<br />ly entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other transits of title to the Property that extinguishes the in-
<br />debtedness, all right, title and interest of Borrower in and to insurance pollctes in force shall pass to the purchaser.
<br />S. Praervatioa sad Malateu8 mr of the Property. I.eaoet 4ge. Borrower shall not commit waste or destrol.. damage or
<br />substantially change the Property or allow the Property to dot .4riorate, reasonable wear and tear excepted. Lender may inspect
<br />the property If the property is vacant or abs"do"d or the fo3-n is in defauft. Lender may take reasonabl: action to prota-t and
<br />preserve such vacant or abandoned property. if wh i.; Security Instrument is on a leasehold, Borrower shaiu comply with the provi-
<br />sions of the lease. If Borrower acquires fee tick ro the Property. the leasehold and fee title shall not be merged unless Lender
<br />f agrees to the merger in writing.
<br />i. Cratgas to 309m ter OW Protection of Leader's Rkbb Its the Property. Borrower shall pay all governmental or municipal
<br />•...�.:..... -awwas ;mm ulni as nvi hiviuucd in r.ragrapn 2. Borrower snail pay these obligations on time directly to the
<br />entity which is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's re-
<br />quest Borrower shall promptly furnish to Lender receipts evidencing these payments.
<br />If Borrower fail to make these payments or the payments se quired by Paragraph 2, or fads to perform any other covenants and
<br />agreements contained in this Security Instrument. 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 to enforce laws or regulatsonso. rhen Lender may do and
<br />pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, including payment of taxes.
<br />hazard insurance and other items meninwtert in Paragraph 2.
<br />Any amounts d4b lased by leader under this Paragraph shall become an additional debt of Borrower and be secured by this
<br />Security lrtstrunWA. These anuunts shall bear interest from the due of disbursement, at the Note rate. and at the option of
<br />Lender, shall be iasmediately due and payable.
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<br />7. CaMetaaatlos. The proceeds of any award or claim for damages, direct or consequential, in connection with any condem-
<br />nation or other taking of any pan of the property. or for conveyance in place of condemnation, are hereby assigned and shall be
<br />to Lender
<br />Paid to the extent of the full amount of the indebtedness that remains unpaid under the Note and ehr• Security Instru•
<br />ment. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this SeLurit> Instrument, first to
<br />any delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment of principal. Any application art
<br />the proceeds to the principal shall not extend or postpone the due date of the monthly payments, which are referred tit in
<br />Paragraph 2, or change the amount of such payments. Any excess proceeds user an amount required to
<br />par all outstanding in•
<br />debtedness under the Note and this Security Inutument shall be paid to the cnut) legally entitled thereto
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<br />I. Paw. Lender may collect fees and charges authorized by the Sectetar).
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