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<br />90-- 105749
<br />1. Payataat of Prindpal. Iattrast tad LAW 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 />L Mooft Paytttteats of Taps, laararsee land Other CYatps. Borrower shall include in each monthly payment, together with
<br />rthe principal and interest as set forth in the Note and any late charges, an installment of any Is) taxes and special assessments
<br />1 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 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 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 esibnated payments or credit the excess over one -sixth of the estimated payments to subsequent
<br />i payments by Bortowet, at the option of Borrower. if the total of the payments made 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 snake up the deficiency on or
<br />before the date the item becomes due.
<br />As used in ibis 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 />entire mortgage insurance premium. If this Security Instrument is or was insured under a program which did not require advance
<br />' ptaynwnc of the entire mortgage insurance premium, then each monthly payment shall also include either: (1) an itnstullrritnt 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 W this Security instrument is held by the Secretary. Each monthly installment of thte mortgage insurance
<br />premium shall be in an amount sufficient to accumulate the full annual mortgage insurance premium wish Lender one month
<br />i prior to the date the full annual mortgage insurance premium is due to the Secretary. or if this Security Instrumerirt is held by the
<br />Secretary, each monthly charge shall be in an amount equal to one - twelfth of one -half percent of the outsianciing principal
<br />i balance due on the Note.
<br />If Borrower tenders to Lender the full payment of all stems 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 />i installment that Lender has not become obliktated to pav to the Secretary. and Lender shall promp:iy refund any excess funds tit
<br />Borrower. Immediately prior to a foreclosure safe of t`he P•openy or its acquisition by Lender. Borrower's account shall be
<br />cniliaed with any balance remaining for all installments for items (a), (b) and (c).
<br />3. Applicatiau o9 Psymeots. All payments under paragraphs I and 2 shall be applied by lender as follows:
<br />jay, 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 pr:.tuum, unless Borrower }paid the entire mortgage insurance premium when this
<br />Security Instrument was signed;
<br />SECOND, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance
<br />premiums, as required;
<br />gp. t. interest due under the Note;
<br />FOUR I
<br />o amortization of the principal of the Note;
<br />to late charges due under the Note.
<br />4. Fire, Flood and Other Htattttrd Insurance. 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 requiar`:, insurance.
<br />This insurance shall be maintained in the arnounts and for the periods that Lender requires. Borrower shall also insure all
<br />improvements on the Property, whether note~ to existence or subsequently 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 />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 lots, 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 />Lender. instead of to Borrower and to Lender jointly. AU or any part of the insurance proceeds may be 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 th -e
<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 z.re amount of such paymes2s. Any excess insurance prs*r•:eds 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 Securiur Instinsttnent or other transfer of title to the Property that extinguishes the m-
<br />dtebtednets. all right. title and interest of Borrower in aad .,a insurance policies in forge shall pass to the purchases.
<br />S. Ptnetervatloa and Mahstenance of the Property. ti.atxmkolds. Borrower shall not commit waste or destroc , damage or
<br />substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect
<br />the property if the property is vacant or abandoned or the loan is in default. Lender may take mittsrraable action to protect and
<br />preserve such vacant or abandoned property. Of this Security Instrument is on a leasehold, Borrower shall comply with the prosi-
<br />sions of the lease. If Borrower acquires fee title to the Property, the leasehold and fee title shall not be rnerged unless Lender
<br />agrees to the merger in writing.
<br />ii. (.7arg a to Borrower ass Protecuou of Ltwer -s ![testa to tae rreperq. "W iro-er snau pay an awcr nnrcnw v1 u.uu,.,w,
<br />charges, fines and impositions that are not included in Paragraph 2. Borrower shaft pay these obligations on time directly to the
<br />entity which is owed the payment. If failure to pay would adversely affect Lender's aaterest in the Property, upon Lender's re-
<br />quest Borrower shall promptly furnish to Lender receipts evidencing these payments
<br />If Borrower fails to make these payments or the payments required by Paragraph 2, or fads to perform any other covenant, and
<br />agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights to
<br />the Property (such as a proceeding in bankruptcy. for condemnation or to enforce laws or regulations), then 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 mentioned in Paragraph 2.
<br />Any amounts disbursed by lender under this Paragraph shall become an additional debt of Borrower and he secured by this
<br />Security Instrument. Thee amounts shall bear interest from the date of disbursement. at the Note rate, and at the option of
<br />Lander. shall be inurrediately due and payable.
<br />7. C4 adepoodoe. The proceeds of any award or claim for damages, direct or consequential, to connection with any condem-
<br />nation or other taking of any pan of the Property, or for conveyance to place of condemnation, are hereby assigned and .hall he
<br />paid to Lender to the extent of the full amount of the indebtedness that remains unpwd under the Note and the+ Smurtty Instill
<br />..tent. Lender shall apply such proceeds to the reduction of the mdebiednes, under the Nate and this ticcurtt y In %ti unient . tent u,
<br />any delinquent amounts applied in the order provided in Paragraph i, and then to prepayment at principal An% application at
<br />the proceeds to the principal shall not extend or postpone the due date of the monthly pasmem.. Ahoub are Wetted t,• art
<br />Paragraph 2. or change the amount of such payments. Any exec.% proceeds user do amuuttt reQntted t„ pa..ttt • 11-,n,tury m
<br />debtedness under the Note and this Security Instrument rholl he paid to the entn. Ievalh, entitled thcn•t,.
<br />g. Fm. Lender may collect fee% and chatKct. authorized h> the Sc.tctan
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