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<br />90-- 105951
<br />L Paym mill of Principal, Interne and Late Char. r. Borrower shall pay when due the principal of, and interest on, the debt
<br />evrdehced by the Note and late charges due under the Note.
<br />2. Monthly Paynests of Tom, Iwraiee atad Other Ckuges. Borrower shall Include in each monthly payment. together with
<br />ri the principal and interest as set forth In the Note and any late chugs, an installment of any (a) taxes and special assessments
<br />levied or to be Lvhxl against the Property. (b) leasehold payments or ground rents on the Property, and (c) premiums for
<br />I 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 aaouhts collected in trust to pay items (a). (b) and (c) before they become delinquent.
<br />If at any there the total of the payments held by Leader for items (a), (b), and (c). together with the future monthly payments
<br />for such ite ns payable to Lender prior to the dare dates of such Items. exceeds by more than one -sixth the estimated amount of
<br />payments required to pay such kcias 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) is
<br />insuffidmt to pay the item wizen due. then Borrower shall pay to Lender any amount necessary to make up the deficiency on or
<br />before rite date the item become; 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 ,,.*der programs which require advance payment of the
<br />entire mortgagee 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 eases monthly payment shall also include either: (i) an installment of the
<br />annual mortgage insurance preubium to be paid by LendvT to the Secretary, or (ii) a monthly charge instead t)f a mortgage
<br />insurance premium If this Security Instrument h held by the Secretary. Each monthly installment of the mortgage insurance
<br />pranium 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 itnsatrance premium is due to the Secretary, or if this Security Instrument is held by the
<br />Secretary, each monthly charge shall be M an amount equal to one - twelfth of one -half percent of the outstanding principal
<br />balance due on the Note.
<br />t 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 mo•rtgsge insurance premium
<br />instalment that Lender has not become obligated to pay to the Secretary., umid Lender shall promptly -refund any excess funds tv
<br />Borrower. Immediately prior to a foreclosure sale of the Property or ias acquisition by Lender, Borrower's account shall be
<br />j credited with any balance remaining for all installments for items (a), (b) and (c).
<br />3. Application of Payments. AN payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />F1 to the mortgage insurance premium to be paid by Lender to the Secretary or to the mommbly charge by the Secretary
<br />instead of the monthly mortgage insurance premium, unless Borrower paid the entire mortgage insurance premium when this {
<br />Security Instrument was signed;
<br />Q, to any taxes. special assessment. leasehold payments or ground rents, and fare, flood and other hazard insurance
<br />presulunts. as required;
<br />THI to interest due under the Note;
<br />JMOU to amortization of the principal of the Note;
<br />. to late charges due under the Note.
<br />d. Fhe, Flood turd Other Briars insurance. Borrower shall insure all improvements on the Property, whether now in existence
<br />j or subsequently erected, against any hazards, casualties, and contingencies. including fire, for which Lender requi res insurance.
<br />This insurance stall be maintained in the amounts and for the periods 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. Ali 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 loss. Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made prompt -
<br />4 ly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss directly to
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<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 />i option, either (a) to the reduction of the indebtedness under the Note and this Security Instrument, first to any delinquent
<br />amounts applied is 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 />paymews which are referred to in Paragraph 2. or change 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 shat: be paid to the entity legal-
<br />,gam
<br />ly entitled thereto.
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<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the in-
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<br />debuda ss. all right, title and interest of Borrower in and to insurance policies in force shall pans to the purchaser.
<br />S. Prpenattioa aid Malnteaaace of the Property, Ltraseholds. Borrower shall so summit waste or destroy, damage or
<br />substantially change the Property or alto* the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect
<br />the pr j IF •t.- ,, apaty is vacant or abatwaned or the ban Is its airfw•u "t. Lender may take rewofwLle action to protect and
<br />preserve aaacb wacm or abandoned property.. If this Security Instrument it on a leasehold, Borrower shall comply with the prove-
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<br />t sions of *e lease. If Borrower squires fee tale to the Property. the leasehold and fee side shalt not be merged unless Lender
<br />agsen ao the merger in writing.
<br />i. Chiron to Borrower sad Proteede■ of Len aler's Rights In the Premij. Borrower shall pay all governmental or municipal
<br />charges, ernes and impositions that are not included in Paragraph a. Borrower shall pay these obtrgatrons 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 dull promptly furnish to Lender receipts evidencing these payments.
<br />If Borrower fails to make these payments or the payments required by Paragraph 2, or fails 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 regulations), then Lender may do and
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<br />pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, including payment of taxes.
<br />hoard insurance and other items mentiomd in Paragraph 2.
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<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 />Leader, shall be immediately due and payable.
<br />i 7. Condemnation. The proceeds of an award or claim for damages. direct or con
<br />L a y erg sequential, in connection with any condem-
<br />nation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned and .hall be
<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 />ment. Lender shall apps¢ such proceeds to the reduction of the indebtedness under the Note and this Security Instrument, first to
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<br />any delinquent amounts applied in the order provided in Paragraph 3. and then to prepayment of principal. Any dpplicatton of
<br />the proceeds to the principal shall not extend or postpone the due date of the monthly payment%, which are referred tit to
<br />Paragraph 2, or change the amount of such payments. Any excess proceeds over an amount required to pay all outstanding m
<br />debtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto
<br />8. Fea. Lender may collect Pecs and charges authorised by the Secretary
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