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<br />90-- 1063'70
<br />Each monthly installment for items (a), (b). and (c) shall equal one -t wclfth of the annual amounts, as reasonably estimated
<br />by Lender, plus nn amount sufficient to maintain an additional balance of not more than vne -sixth of the estitnatccl ;unounts.
<br />The full annual amount far each item shall 1>e accumulated by Lender %%ithin a period ending one month before an item ""Id
<br />become delinquent. Lendei shall hold the amounts collected in trust to pay items (a), (b), and (c) before they betx»ue delinquent.
<br />If at any time the total of the payments held by lender for items (a), (b), and (cl, 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
<br />of payments required to pay such items when due, and if payments on the Note arc current, then Lender shall tither refund
<br />the 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 03
<br />is insufficient to pay the item when dire, then Borrower shall pay to Lender any amount necessary to make up the deficiency
<br />on or 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 insured under programs which require advance payment of
<br />the entire mortgage insurance premium, If this Security Instrument is or was insured under a program which did not require
<br />advance payment of the entire mortgage insurance premium, then each monthly payment shall also include either: (i) an installment
<br />of the 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 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
<br />by the 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 Nrixe.
<br />N L:w ower tenders to Lender the full payment of all sums secured by this Security instrument, Borrower's account shall
<br />be 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 th; ' &- cretary, and Lender shall promptly reiltnd any em ss funds
<br />to Borrower. immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Bem. -Rover's account shall
<br />be credited with any balance remaining for all installments for items (a), (b), and (c).
<br />3. Application of Payments. All. payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />First, to the mortgage insurattci: i7 emium to be paid by Lender to the Secretary or to the monthly charge by the Secretary
<br />instead of the monthly mortgage frtsrmance premium, unless Borrower paid the entire mortgage insurance premium when this
<br />Security Instrument was signed;,
<br />Second, to any taxes, special: atvse s.nents, l as u. -hold payments or ground: rents, and fire, flood and other hazard insurance
<br />premiauris, as required;
<br />Thfr(L to interest due under d7j. Note;
<br />Fcrmrth, to amortization of tLI,. pilaf- --ipal of the Note;
<br />Fifth, to late charges due und:x rh".INote.
<br />4. Fire, Flood and Other hazard Insureaoe. Borrower shall insure all improvements on the Property, whether now in
<br />existence or subsequently erected, ag;anst any hazards, casualties, and contingencies, including fire, for which Lender requires
<br />insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also
<br />insure all improvements un lite Prt�Ne. ay, whether now in existence or subsequently erecter!, ?Wainst loss by floods to the extent
<br />required by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and any
<br />renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form ia.eptable 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
<br />promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment fcp such loss
<br />directly to Lender, instead of to Borrower and to Lender jointly. All or any pan of the insurance proceeds may be applied
<br />by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security Instrument. first to
<br />any delinquent amounts applied in the order in Paragraph 3, and then to prepayment of principal, or (b) to the restoration
<br />or repair of the damaged property. Any application of the proceeds to the principal shall not extend or postpone the due date
<br />of the monthly payments which are referred to in Paragraph 2. or change the amount of sil tt paymrwms. Any excess insurance
<br />proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security instrument shall be
<br />paid to the entity legally entitled thereto.
<br />in the event pl"- foreclosure of this Security Instrument, or other transfer of title to the Pragerty that extinguishes the
<br />indebtedness, all rigs:, title and interest of Borrower in and to insura:m.-e policies in force shall Bass to the purchaser.
<br />S,. ffeeservation and Maintenance of the Property. Lemselinfils. Borrower shall not commit waste dr destroy.. damage or
<br />substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender ruay inspect
<br />the property if the property is vacant or abandoned or the loan is in default. Lender may take reasonable action to protect
<br />and preserve such vacant or abandoned progeny:. If this Security instrument is on a leasehold, Rarmumer shall comply with
<br />the provisions of the lease. if Borrower acquires fee title to the Property, the leasehold and fee tide ! hall not be merged unless
<br />Lerida- agrees to the merger in writing. f
<br />d. Charges to Borrower and Protection of Lender's Rlgkbi in the Property. Borrower shall pay all governmental or municipal
<br />charges, fines and finpositions that are not included in 1 ?artgraph 2. Borrower shall pay these obligations on time directly to
<br />the entity which is owed the payment. if failure to pay %voijbi a4% ersely affiea Lender's interest in the Property. upon Lender's
<br />request Borrower shall promptly furnish to Lender reecipti (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
<br />and agreements contained in this Security instrument, or there is a legal proceeding that may significantly affect Lender's rights
<br />in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may
<br />do and pay whatever is necessary to protect the value of the Property and Lender's rights in the- Property. including payment
<br />of taxes, 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
<br />by this Security Instrument. These amounts shall bear interest from the date of disbursement. at the Note rate, and at the
<br />option of Lender, shall be immediately due and payable.
<br />7. Condemnation. The proceeds of any award or claim for damages. direct or consequential, in connection with any
<br />condemnation or other taking of any part of the Property, or for conveyance in place of condemnation. are hereby assigned
<br />and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this
<br />Security instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security
<br />Instrument. first to any delinqueni amounts applied in the order prodded in Paragraph 3. and then to prepayment of principal.
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<br />S,. ffeeservation and Maintenance of the Property. Lemselinfils. Borrower shall not commit waste dr destroy.. damage or
<br />substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender ruay inspect
<br />the property if the property is vacant or abandoned or the loan is in default. Lender may take reasonable action to protect
<br />and preserve such vacant or abandoned progeny:. If this Security instrument is on a leasehold, Rarmumer shall comply with
<br />the provisions of the lease. if Borrower acquires fee title to the Property, the leasehold and fee tide ! hall not be merged unless
<br />Lerida- agrees to the merger in writing. f
<br />d. Charges to Borrower and Protection of Lender's Rlgkbi in the Property. Borrower shall pay all governmental or municipal
<br />charges, fines and finpositions that are not included in 1 ?artgraph 2. Borrower shall pay these obligations on time directly to
<br />the entity which is owed the payment. if failure to pay %voijbi a4% ersely affiea Lender's interest in the Property. upon Lender's
<br />request Borrower shall promptly furnish to Lender reecipti (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
<br />and agreements contained in this Security instrument, or there is a legal proceeding that may significantly affect Lender's rights
<br />in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may
<br />do and pay whatever is necessary to protect the value of the Property and Lender's rights in the- Property. including payment
<br />of taxes, 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
<br />by this Security Instrument. These amounts shall bear interest from the date of disbursement. at the Note rate, and at the
<br />option of Lender, shall be immediately due and payable.
<br />7. Condemnation. The proceeds of any award or claim for damages. direct or consequential, in connection with any
<br />condemnation or other taking of any part of the Property, or for conveyance in place of condemnation. are hereby assigned
<br />and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this
<br />Security instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security
<br />Instrument. first to any delinqueni amounts applied in the order prodded in Paragraph 3. and then to prepayment of principal.
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