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<br />90.106245
<br />1. Payrltat of Prisidpaf. iattmi sed We Cbarge, Borrower shaU pay whrn due the principal of, and interest on, the debt
<br />evidttrced by the Note and late charges due under the Note.
<br />A MomW rays ota of Two„ lasatttate dad 01bet Chu". Borrower shall include in each monthly payment. together with
<br />levi dim be (cwW AWL MS tthe the Note and any late chastles, an
<br />(b) leasehold payments or ►round Installment nts on he Property. and special premiiu premiums assessments
<br />insurance required by Paragraph a.
<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 />tot such item 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. theft Lender shall either refund the
<br />excess over one.dxh of the estimated payments or credit the excess atirer one-$ h 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 />insufficient to pay the item when due, then Borrower shall pay to Lender any amount necessary to make up the deficiency on air
<br />before the date the item becomes due.
<br />As used in this Security Instrument, "Secretary" means the Secretary of Housing and Urban Development r his of her
<br />designee. Most Security Instruments insured by the Secretary arc insured under programs require
<br />entire mortgage insurance prcmiurn. If this Security imurument 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 />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 Leader 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 all sums secured by this Security Instrument, Borrower's =count 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 Property or its acquisition by Lender, Borrovves account shall be
<br />credited with any balance remainin8 for all installments for items (a). (b) and (c).
<br />3. Application of Tqm ets. All payments under paragraphs 1 and 2 shall be applied by Lender as fallawts.
<br />. to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly citmj}t: by the Secretary
<br />Instead of the monthly mortgage insurance premium, unless Borrower paid the entire mortgage insurance prx'rnium when this
<br />Security instrument was signed:
<br />M . to any taxes, special assessments. leasehold payments or ground rents. and fire, flood and other hazard insurance
<br />,,C
<br />premiums. as required:
<br />3H ER. Q. to intcsest due under the Note.
<br />FOUR . to amortization of the principal of the Note:
<br />jam, to late c9targes due under the Note.
<br />a. FIZZ. iWOd and u'sa KM=do fir; –..�. Ror -_, - r ;haH in`ute an y'npreyttntmc on the Property. whether now in existence
<br />or subsequently erected, against any hazards, casualties. and contingencies, including fire, for which Lender requires insurance.
<br />This insurance shall 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 tike extent required by
<br />the Secretary. ALI insurance shall be carried with companies approved by Lender. The insurance policies an.d 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 toss. 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 dlrectly 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.), as the reduction of the indebtedness under the Note and this Security Instrument. l-ur3z to any delinquent
<br />amounts apptiaS ilz the order in Paragraph 3, and then to prepayment of principal. or (b) to the restaroj an or repair of the
<br />& =Med property. Any appUcation of the proceeds to the principal shall sac extend or postpone the dui• date of the monthly
<br />paytmeats which are referred to in Paragraph 2. or change the amount of such payments. Any excess insurance proceeds over an
<br />atrntuat required to pay all outstanding indebtedness under the Note and this Security Instmatent shall be paid to the entity legal-
<br />ly entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other transfer of title to file Froperty that extinguishes the in-
<br />debtedness, all right, title and interest of Borrower in and to insurance policies in force sMI pass to the purchaser.
<br />S. Promotion and Maia+i4attaace of the Property, Leaseholds. Borrower shall not wwm f. *aq.e cr destroy. damage or
<br />substantially change the Prarn'tF or allow the Property to deteriorate, reasonable wear axed tmr exceMext;- Lender may fnspect
<br />rite property if the property is e:u:aW or abandoned or the Commis ut default. Lender may, talfe reasonable 2ction to prooam and
<br />preserve such vaunt or abandoned property. If this Security rowr=ent is om a leasehold, u'Torrower shaft t:rzmPly with tl%c i
<br />sloes of the [f Borrower acquires fee title to the Properrf, cite *;easdtard at?d fee title shall not be merged unless Leader
<br />agiess to tJtt: t+er in writing.
<br />e,. Cita gees, taro amrrowco mini; p'eotecdon of Lender's RigArts Lm The Properly. Borrower shall pay all governmental or iCrmu#r l
<br />dnaiges, fines iiapasiifon,tiiat are not included in Parsgrnt?Ir 2. Borrower shall pay dime obligations on time directly to-the
<br />cvtity which is d�vtii file pay m em:. if failure to pay woul3 aalvetT�ely affect Lender's interest: iii the Property. upon Leader's re-
<br />quest Borrowee slianiL' protaptiy Ctrnish to E.m�tet receipts'c'<••idencing these pa$- ntettrs.
<br />If Borraa:es fa1Lq !n make these payments n. r. tine payments required by Fat n�rit L,. ur Et�l t u perforn. a�sy ether covenants and
<br />agreements contained im this Security instnfnnent, or there is a legal preceding fli=t. m:a� 9i&u icartd"y, ar:f= Lender's rights in
<br />the Property (such as a proceeding in bankruptcy, for condemnation or ¢o mrarxn jjL_vt.1, (srr gndations), then.- Lender may do and
<br />pay whore er is necessary to protect the value of the Property and Lender's tights in the Property. including payment of trnxt!F.
<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 />T. Cowkwastion. The proceeds of any award or claim for damages, direct or consequential, 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 shall 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 apply such proceeds to the reduction of the indebtedness under the Note and this Security instrument, first to
<br />any delinquent amounts applied in the order provided in Paragraph 3. and then to prepayment of principal. Any application of
<br />the proceeds to the principal shall not extead or postpone the due date of the monthly payments, %0tich are referred to in
<br />Paragraph 2. or change the amount of such payments. Any excess proceeds over an amount required to pay all outstanding in-
<br />debtedness under the Note and this Security instrument shall be paid to the entity legally entitled thereto.
<br />g. Fees. Lender may collect fees and charges authorized by tine Secretary.
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