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90-106292
<br />I, plat >rriacyal. latireat taw Lsbe (,`lame. Borrower FMU pay when due the principal of. and interest on. the debt
<br />evidenced by the Note and late charges due under the Note.
<br />3. MaG" pog"In M Tula, i"Unim MW 01liv C bmew Borrower shall include in each monthly payment. together with
<br />the d or to be levied &plotethe Property, (b) leasehold�paymentss or groundtd entston the P operty. an special Premi for
<br />insurance requited by Paragraph d•
<br />Each monthly installment for items (a). (b) and (c) shall equal one-twelfth of the annual amounts. as reasonably estimated by
<br />Leader, phis an amount sufficient to maintain an additioaelce 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 W. (b) and (c) before they become delinquent.
<br />It 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 estimated payments or credit the excess over an -sixth of the estimated payments to subsequent
<br />payments by Borrower, at the option of Borrower. I.f the total of the payments made by Borrower for item. (a), (b), or (c) is
<br />Insuffidtnt to pay the item when due, then Borrower shall pay to Lender any amount necessary to make up the deficiency an or
<br />befam the date rite item itecomes due.
<br />As used in this Security Instruument, "Secretary" means the Sectelarg of-Housing and Urban Developavent or his or lus
<br />desis=. Most Security Instruments insured by the Secretary are inaumd antler pmagrams which require advance pay mmene t.,t
<br />ea do MMquge insurance premium. If xis Security fnst;rument is or was immcd utadtcr a program which did roe to I im ara%v=
<br />pay mom psi the entire Mortgage insurance p=aiuma, chew each monthly pa y-ment s11 also include either: G) nn erns mnenc arf ache
<br />&mud marsgagt ksw'ance plandum to be paid by Lender to the Secretary, or 4B) a manft charge io<staw of a Mextgage
<br />iasim mane preatiutm if this Se,-uraey B=-=ent is held by the Secretary. Each monthly innaHment of the =atrgage insurance
<br />premium shall be in an amount sufficient to accumulate the full annual mort&W insurance premium with Lender one month the
<br />prior
<br />ecretary. each monthly charge shall be in anuamount equal to one -twelfth of one -half percent of the outstanding principal
<br />balance due on the Note.
<br />It Borrower tenders to Lender the full payment of all sums secured by this Security 103 t. 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 />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, Borrower's account shall be
<br />credited with any balance remaining for all installments for items (a), (b) and (c).
<br />g. Applind to of Pgamts. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />EM. to the mortgage insurance premium to be paid by Leader 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 this
<br />Security instrument was signed;
<br />SECOND. to any taxes, spacial assessments, leasehold payments or ground rents, and fire. flood and other hazard insurance
<br />premiums. as required;
<br />JulgQ, to interest due under the Note;
<br />Four. to amortization of the principal of the Note;
<br />F]I' . to late charges due under the Note.
<br />d. Me. Fleas aN Oder BMW Ittsttraace. iorrower shall inwrc all iitip:c,ia;,,,^u"ti as J: Property, whethe r now in ex- istenee
<br />or subsequently erected, against any hazards, casualties, and contingencies, including fare, for which Leader 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 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 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 suzh loss directly to
<br />Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may be applies by Lender, at its
<br />option, either (a) to the reduction of the indebtedness under the Note and this Security instrument, fk.-M to any delinquent
<br />amounts applied in the order in Paragraph 3. and then to prepayment of principal, or (b) to the restorati+om or repair of the
<br />damaged pro perty. Any application of the prooeeds to the principal shall not extend or postpone the due daze of the monthly
<br />payments which are referred to in Paragraph 2, isr change the amount of such payments. Any excess insurance p.oceeds over an
<br />amount required to pay all outstanding indebtedness under the Note and this Se urity Instrument shall be paW to the entity legal-
<br />ly entitled thereto.
<br />In the event of foreclosure o: this Security fnsuument or other transfer of title to the Property that extinguishes the in-
<br />debtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />S. Preservation and Maintenance of the PrOPM, Leaseholds. Borrower shall not commit waste or destroy, 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 reasonable action to protect and
<br />preserve such vacant or abandoned property. if this Security Instrument is on a leasehold. Borrower shall comply with the provi-
<br />sions of the lease. if Borrower acquires fee title to the Property. the leasehold and fee title shall not be merged unless Lender
<br />agrees to the merger in writing.
<br />ti. CharW to Borrower and Protettiom at Leader's Rights is the property. Borrower shall pay all governmental or municipal
<br />charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations 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 shall promptly furnish to Lender receipts evidencing these payments.
<br />If Borrower faits 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
<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 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. Comkinaat)ea. 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 dais Security Instnr-
<br />men:. Lender shall apply such proceeds to the reduction a f the indebtedness under the Note and this SM -urrle Enorumear,. first to
<br />any delinquent amounts applied in the order Miraded in Paragraph 1,. and then to prepayment of prindypa9. a3, rpp[ieMuon of
<br />the proceeds to the grincipol shall not eeltnd, cc postpone the due date of the mcnshit. C:a��.r mm, x,06r:h are.referred to in
<br />Paragraph 2, or change the amount of such. pit netts. Fury excess proceeds c7.1r 2a ar`n:,= -equirai nT psi ::y -N-tstmnding in-
<br />debtedness under the Note and this Securii-I instrument shag he +staid eta. c"lZ =,_4 :egr.1y e>:✓he rltecatc_
<br />8. Fees. Lender may collect: fen and cllacger rush -arid c�+
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