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<br />90--105943
<br />1. Paytareal of blinelpal, Ints"Ise aN last Clo rge. 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. MoalMly Paym ads of Iran, Im anew and Other 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 Properly, (b) leaehokl 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 ari item would
<br />become delinquent. Leader shall hold the amounts collected in trust to pay items (a), (b) and (c) before they become delinquent.
<br />If at any time the told of the payments held by Lender for items (a), (b), and (c). together with the future monthly payments
<br />(cc such items payable to Larder prior to the due dates of such items, exceeds by more than one -sixth the estimated amount of
<br />i payments mquired 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 bqr Borrower, at the option of Borrower. If the total of the payments made by Borrower for item (a). (b), or (c) is
<br />insoffm&W to pay the item when due. then Borrower shall pay to Leader 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 />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 />payment of the entire mortgage insurance premium, then each monthly payment shall also include either: (i) an installment of the
<br />aaaud 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 shag 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 is 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 W1 sums secured by this Security Instrument, Borrower's account shall be
<br />credited with the balance remaining for all insta ll w .v3 for items (a), (b) and (c) and any mortgage insurance premium
<br />Installment that Lender has not become obligated to paw to the Secretary. and Lender shall promptly refund any excess funds to
<br />Borrower. Immediately prior to a foreclosure sale of ahe Property or its acquisition by Lender. Borrower's account shall be
<br />credited with any balance remaining for all irstaftanss for items (a), (b) and (c).
<br />!�. Appliesdom of Payne essa. All payments under paeWaphs I and 2 shall he vplied by Lender as follows:
<br />BSI, to the mortgage insurance premium to be paW tt"y Lender to the Secretary or to the monthly charge by the Secretary
<br />instead of the monthly mortgage insurance premium, uaWm Benno %ve paid the entire mortgage insurance premium when this
<br />Security Instrument was signed;
<br />'SECOND, to any truces, special assessments. leasehold paymems w ground rents, and fire. flood and other hazard insurance
<br />premiums, as required; MF
<br />INI . to interest due under the Note; Fir;
<br />)FOURTH. to amorxiration of the principal of the Note; -
<br />FIFTH, to late charges due under the Note.
<br />0. EUe, blood mad Ober Hazard Itstararx. Borrower shall insure all improvements on the Property, whether now in existence
<br />or sabsequendy erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires insurance.
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<br />insurance shall be maintained in the amounts aura for the periods that Leader requires. Borrower shall also insure all
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<br />improvements on the Property, whether now in existerare or subsequendy erected. against loss by floods to the extent required by
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<br />the Secretary. AD insurance shall be carried with companies approvea by Lender. The insurance policies and any renewals shall
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<br />be held by Leader and shall include loss payable clauses in favor of, and in a form acceptable to, Lender.
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<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 />Lender. instead of to Borrower and to Lender jointly. All 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 the
<br />damaged property. Any application of the proceeds to the principal shall not extend or postpone the due date of the awnibly
<br />payments which are referred to in Paragraph 2. or chata v the amount of such payments. Any excess insurance proceeds over an
<br />amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to she entity legal-
<br />ly endded thereto.
<br />In the event of foreclosure of this Security Instrum at or other transfer of title to the Property that extinguishes the a-
<br />debte dness. all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />S. I mmatioa and Mabatt stairce of sure Property. tomeholds. Borrower shall not commit waste or destroy, damage or
<br />substa didly change the Property or allow the Properry.o deteriorate, reasonable wear and tear excepted. Lender may inspect
<br />the property if the property is vacant or abandoned or 'ix loan is in default. Lender may take reasonable action to protect and
<br />preserve such vacant or abandoned properrp. LE this Secunty Instrument Is on a leasehold. Borrower shall comply with the provi-
<br />sions of the lease. If Borrower acquires fee usage to the Property, the leasehold and fee title shall not be merged unless Lender
<br />agrees to the merger in writing.
<br />S. Chsuges to Batnrwer wad Protection of Leader's Iligists In tie Property. Borrower shall pay all governmental or municipal
<br />abaraea. fines and immtitions that are tint included in Paragraph 2 Borrower thali nav these nhliaarinnt an rime directly to the
<br />eatiiy %;bleb is owed the payment. If failure to pay would adversely affect Lender's interest in the Property. upon Lender's re-
<br />quest Borrower stall promptly furnish to Leader receipts evidencing these payments.
<br />If Borrower tails to make these payments or the payments required by Paragraph 2. or fails to perform any other covenants and
<br />agtnxme its 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 regulations), then Lender may do and
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<br />pay whatever h 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 be secured by this
<br />Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the option of
<br />Lender. shall be immediately due and payable.
<br />7. Condemnatloa. The proceeds of any award or claim for damages, direct or consequential, in connection with any condem.
<br />L nation or other taking of any part of the Property, or for conveyance in 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 unpaid under the Note and this Security Instru-
<br />mint. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Securio Instrument, first to
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<br />any delinquent amounts applied in the order provided to Paragraph 3, and then to prepay mint of principal U% applcation of
<br />the proceeds to the principal shall not extend or postpone the due date of the monthly payments, whah are referred ro rte
<br />Paragraph 2. or change the amount of such payments. Any excess proceeds over an amount reyuned to pas all outstanding err
<br />debtedness under the Note and this Security Insnutnent ►hall be paid to the entrt. legalh entitled rhereto
<br />S. Pep. Lender may collect fees and charges authortred by the tiecretars
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