|
1, Psyweat of hint", h weer a" irate Charge. Borrower shall pay when due the principal of, and interest on, the debt
<br />evidenced by the Note and late charge► due under the Note.
<br />3. Meg" Paym nb of Tww, lauraaee stag Ober CMW. Borrower shall include in each monthly payment, together with
<br />the principal and interest u ad forth in the Note and any late charges, an installmeni of any (a) taxes and special assessments
<br />levied or to be levied against the Property, (b) leasehold payments or gtound rents on the Property, and (c) premiums for
<br />Insurance roquirtd by Paragraph 4.
<br />Each tmotiddy Ittatalbmt for items (a), (b) and (c) shall equal one- twelfth of the annual amounts, as reasonably estimated by
<br />Leader, putt an amount sufficient to tmainWrt an additional balance of not more than onasixth of the estimated amounts. lfhs
<br />full annual titmount for each item shall be accumulated by Lender within a period ending one month before an item would
<br />become delinqumi. Leaft 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 cui rml, 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 />ppaayments by Borrower. at the option of Borrower. If the total of the payments made. by Borrower for item (a), (b), or (c) qs
<br />tnmifieknt to pay the item when due, then Borrower shall pay to Lender any amount necessary to make up the def icienl-y era of
<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 />designee. Most Security Instruments insured by the Secretary are in red, tinder programs which require advance payment of the
<br />entire mongage 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 p", ment shall also include eithmr: (i) an installment of the
<br />annual mortgage insurance premium to be paid by Lender to the Sec mnry, or (lip a monthly charge instead of a mortgage
<br />iinsurat►ce premium if this Security Instrument is held b), the Secretary.'EmIi mautJri)' installment of the mortgage insurance
<br />premium shat! be In an amount sufficient to accumtrlat, rlte fug annual aiortgagr htsutunce premium with Lender one month
<br />prior to the date the full annual mortgage in.5uraacc pmtdum is due to the Secretary. err if taxis Security Instrument is held by the
<br />Secretary, each monthly charge shall be in an amount equal to one- twelfth of one -half p aceat• (cif' the outstanding principal
<br />balance due on the Note.
<br />if Borrower tenders to Lender the PA payment of all sums secured by this Security Instrument, l rrower's account shall be
<br />credited with the balance remaining for alb iastallmm4,, for items (al, (b) and (c) and any mortgage insurance premium
<br />Installment that Lender has not become obligated to pW to the Secretary, and Lender shall promptly refund any excess funds to
<br />Borrower. Immediately prior to a forecioaare sale of the Property or nrs acquisition by Lender, Borrower's account shall be
<br />credited with any balance remaining for all Installments for items (a.)„ (b � and (c).
<br />3. Agswafte of Faymemb. All payments under paragraphs 1 any , Z mall be applied by Lender as follows:
<br />FIR,Q, to the mortgage insurance premium to be paid by Lender w :rte 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 hutrument was signed;
<br />SECOND, to any taxes, special assessments, leasehold payments or. smi and rents, and fire, flood and other hazard insurance
<br />premiums. a required;
<br />j$Q. to interest due under the Novet
<br />V , to amortization of the prixRt t ri' of the Note;
<br />FUTH, to late charges due under the Nate.
<br />4. FIM Flssd and Od w Hazard Lsaraaee. Borrower shfAf insure all improvements on the Property, whether now in existence
<br />or subsegttotl'iy erected, against any hazanis, casualties. and contingpd(m including fire, for which Direder requims insurance.
<br />This insusai= shall be maintained in car amounts and for the pehgds litat Lender requires. Ilomz%wer shall also insure a)L '
<br />improvements on the Property, whether mqw inexistence or subsequeWF lwzcted. against loss by boo s rra the extent re-vxk ea by
<br />the Secretary. All instumze shall be carried with companies approved icy E.ender. The i wuraace pcplj� and any remwaTb sbzft
<br />be held by Lender and sii& include loss payable clauses in favor of, and in a form azzi table to, Lender.
<br />In the event of loss. Bon -awer shall give lender immediate notice by mail. Lender may make proof of loss if not rmade Prompt-
<br />ly by Borrower. Each insurance eompaMi aancemed is hereby authorised gad directed to make payment for such loss directly to
<br />Lender. instead of to Borrower and to Leandr:: jointly. All or any pars of ore insurance proceeds may be applied by Lender, at its
<br />option, either (a) to the reduction of the L-debtedness under the Nate aura this Security instrument. first to any delinquent
<br />amounts applied in the order in Paragr4 t 3,. and lben tz prepayment (,-F principal, or (b) to the restoration or repair of the
<br />damaged property. Any application of the prate! s rs rim_ principal shall not extend or postpone the due date of t5e monthly
<br />payments which are referred to in Paragraph Z. ear dlnaae the amount of such payments. Any excess insurance proceeds over an
<br />amount required to pay all outstanding indelt4r kws utter the Note aFA ttis Security Instrument shall be paid to the entity legal-
<br />ly entitled thereto.
<br />In the event of foreclosure of this Semdty Instrument or other mos.Cur of title to the Property that extinguishes the in.
<br />debtedness. all right, title and interest of Borrower in and to insuraurce policies in force shall pass to the purchaser.
<br />s. hexnatios and Mafateassee of the Property,. 11asnehotds. Borrower shalt ruw 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 leasebold, Borrower shall comply with the pro%i-
<br />sions of the lease. if Borrower acquires fee title to the Property, the Rasehold and fee title shall not be merged unless Leader
<br />agrees to the merger in writing.
<br />f. Charges to Borrower gad Protection of Leader's Rights in tits' Fmperty. 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 t[te
<br />entity whidi is owed the payment. if failure to pay would adversely n1fect Lender's interest in the Property, upon Lender's r-
<br />quest Socrawer shall promptly furrihis uo Lender receipts evidencing these payments.
<br />If Borrower faais to male these pay.1m acts or the payments required by Paragraph 2, or fails to perform any other covenants and
<br />agreements contained in finis fsecttrity. Dianiment, or there is a legal proceeding that may significantly affect Lender's rights in
<br />the Prapamy (such as a w-uam0J*.4 l!:cnkruptcy. for condemnation or to enforce Taws or regulations), then Lender maydo and
<br />pay whattever is necessary to proteci: time value of the Property and Lender's rights in the Property, including payment of taxes,
<br />hazard instinince and other items maiiJoned in Paragraph 2.
<br />Any amounts disbursed by lender wider 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. Cosdensatiom. 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 extend or postpone the due date of the monthly payments. which 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 />S. Fees. Lender may collect fees and charges authorized by the Secretary.
<br />Page 2 of
<br />s.
<br />f„
<br />111.x: '• i
<br />{G fir'. '
<br />")1, :'��� •
<br />•
<br />:. :.;
<br />f..
<br />s.
<br />111.x: '• i
<br />{G fir'. '
<br />")1, :'��� •
<br />•
<br />:. :.;
<br />f..
<br />• 31 y, .
<br />i
<br />
|