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<br />M used in this Smiity inslumml. "Seaetary" moons the Secretary of Housing and Urban Development or his or her designee.
<br />Mop Secwky Instruments insured by the Secretary are insenexd under programs which require advance payment of the entire mortgage
<br />insurance premium. It this Security Instfument Is or was Insured under a program which did not require advance payment of the entire
<br />mortgage Insurance premium, then each monthly payment shah also Include either. (1) an instalment of the annual mortgage Insurance
<br />prenflum to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage Insurance premium g this Security
<br />Instrument is held by Ilse Secretary. Each monthly InstaWmwnt of the mortgage insurance premium shag be In an amount sufficient to
<br />accumulate the fug annual mortgage Insurance premium with Lender one month prior to the date the full annual mortgage Insurance
<br />premium is due to the Secretary. or it this Security Instrument Is hell by the Secretary, each monthy charge shoo be In an amount
<br />equal to one4woMh of aw hag Percent of the outstanding principal balance due on the Note.
<br />M Borrower tenders to Lender the fug payment of all wms secured by We Security Instrument. Bonowar's account shoo be credited
<br />with the balance 1'emalning for all installments for gems (a), (b) and (c) and any mortgage insurance premium Installment that Lander
<br />has not become obligated to pay to the Secondary, and Lender shall promptly retund any excess kends to Borrower. Immediately prior to
<br />is fotedosure sate of the Properly or its acquisition by lends. Bortowees sccwt shad be credited with any balance renatrditg for d
<br />NsstaMrnamts for items (s). (b) amd (a).
<br />3. Application of Payoments. Al payments under p regraphs 1 end 2 shall bib applied by Lender as bllows:
<br />First 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 insurance premium when thug Security
<br />inowment was signed;
<br />Second. to any taxes, special asst aments, lasehold payments or ground tents, and fire, flood and other hazard insurance
<br />pmanlums, as Mquired;
<br />Third, to interest due under the Note;
<br />Fourth, to amortittation of the principal of the Note:
<br />Fifth, to late charges due under the Note.
<br />4. Fire. Flood and Other Hazard Insurance. Borrower shall insure aJ Improvements on the Prulpirly, whether now in
<br />existence or subsequently erected, against any hazards, easuaoise, ant) contingencies, including fire. for which Lender r -quires
<br />insurance, This insurance shall be maintained In the amounts and for the pedetds that Lender requires. Borrower shag also Insure so
<br />improvements on the Prcpwty. whett•.cr III In existence or subsegrrenfly wfeW maainst loss by floods to the ardent required by the
<br />Secretary. AN insurance shag be carried with companies approved by Lender. The Insumnce policies and any renr wale shag be held by
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<br />Lender and shall Include loss payable clauses In favor of, and In a form acceptable ta, Lender.
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<br />In the event vi toss, Borrower shall give :.ender knmediste notice by mail. Lender may make proof of loss it not made promptly by
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<br />Borrower. Each insurance company concerned is hereby authorized aril diecfed to make paymena tot such loss directly tu, Lender.
<br />Inslad of to Borrower and to L,endex jointly. Ali or any part of the Insurance praaeocds maybe applied by Lender, at its option, either
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<br />(a) to the reduction of the Indebtedness under the Note and this Security instrument, first to any delinquent amounts applied In the order
<br />in Paragraph 3, and then to prepayment oY ytireCipal, or (b) to the restoralton or repair of the dama,;A property. Any application of the
<br />proceeds to the principal shag not extend or postpone the due dale oil 'one monthly payments where are referred to in Paragraph 2. or
<br />change the amount of such payments. Any excess insurance proceeds over an amount required to pay ao outstanding Indebtedness
<br />under the Note and this Security Instrument shoo be pad to the entity legally entNed thereto.
<br />In the event of foreclosure of this SecurdY Instrument or other transfer of title to the Property that extinguishes the indebtedness. ao
<br />right, tide and ir"rest of Borrower in and Ice , nsursnce policies in force wnd pass to the purchaser.
<br />5. Preservation and Maintenance of the Property, L.esseholds. Borrower shag not commit waste or destroy,
<br />damage or substantially change the Property or slow the Property to deteriorate, reasonable wear and tar excepted. Lender may
<br />Inpoct the property it the property Is vacant or abandoned or the loan is In Befoul. Lender may lake reasonable action to protect and
<br />preserve such vacant or abandoned property. If this Security Instrument is on a leasehold. Boroweer shag comply with the provisions
<br />of the tense. If (gortower acquires fee idle to the Property. the loosehold and In thle shag not toe moged unless Lender agrees to the
<br />merge in wdtktg.
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<br />6. Chaos to Borrower and Protection of Lender's Rights in the Property. Born w r shag pay au
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<br />governmental of municipal charges, fines and knpositions that are not evcluderd In Paragraph 2 Borrower shag pay these owigations on
<br />time direoify to the entity which is owed the payment It failure to par would adversey affect Lender's Internet in the Property, upon
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<br />Lender's request Borrower shag promptly furnish to Leader receipts evidencing these payments.
<br />II Borrower fags to mane these payments or the payments required by Paragraph 2. or falls to perform any other covenants and
<br />agrewrwr3s {,Nr.taM 44 In pit: Secuiyty mr.,eament, or there is a legal proceeding that may -+.utiranwv affect Lender's rights in the
<br />property (such as a proceedrr►g in bankcr.ouY, for condemnation or to enforce laws or requtal"s ,. ther► Lender may do and pay
<br />whatever Is nezessary to ,protect the value of the faropeny and Lender's rights in the Properly inducing tpayrewnt of taxes. hazard
<br />rnumranee and other Reins awatronsd in Paragraph 2
<br />Any amounts disbursed by Lender under IM Paragraph shall become an addrlronal debt of Borrower and be secured by mrrs
<br />Security Inhurrtent. These amounts stag bow Interest from the date at disburrserrmt, at ihf► Note rate, ono at the option ai Lender. serums
<br />be Immediately due and payable
<br />T. Condemnation. The proceeds of any award or claim for damages. direct of consequential, in connection with any
<br />condennatfon or other taking Of any part of the Property. or for conveyance in piece of conderfrrataon, are hereby assigned and shag
<br />be paid to Lender to the extent of the fug amount of the indebtedness that remains unpaid under the Note and this Security instrument
<br />Lender shoo apply such proceeds to the reduction of the indebtedness under the Note and this Sea+nty Instrument. first to any
<br />degrnqued amounts applied ern the order po"dad m Paragraph 3 and then to prepayment of pnrtcipal Any appbcationn of the pfoceeds
<br />to Via principal shall not adand or postpone " due date of the monthly pay:rnents. which are relayed to in Paragraph 2. or change
<br />I" enaount at such payments Any excess proceeds over an amount requied to pay am outstand+ng indebtedness under the Note and
<br />thna Security Instrument shag be paid to the entity legally entitled thereto
<br />B. Fees. Lena w may ccAect fees and charges outhorued by the Secretary
<br />9. Grounds ow Acceleration of Debt.
<br />(a) default. tender roar e.cepi as wride t by wVulal•uns issued by the `..av wtaq v, u,.• , a .. .f t.a,,". •n ,p aJ,rn : r.•u., V
<br />immediate payment in fuU of all sums secured by this SeCuhty nnstrunprrt if
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