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<br />90-.106390
<br />106390
<br />1, iPoya"I of ilriaelpal, in~ anti Irte Charge. Borrower shall pay whtn due the principal of. and interest on, the debt
<br />evidenced by the Note and late charges die um1kr tits Note.
<br />a. Me aft Psyw ita e1T&ua, lararateo trod 06" Chmen, Borrower shall include in each monthly pa ent. together with
<br />t -e@ or two ti.- aagainstethe forth roperty, (b leasehold payments or i and rents on he Pr perry. and (c) preen assessments
<br />for
<br />iastuaaee required by Parynph i,
<br />Esch txt mthly installment for Item (a), (b) and (c) shall equal one - twelfth of the annual amounts, as remsonabty esftued by
<br />Lender. plus an amount sufficient to maintain an additional balance of not more tbRn one -sixth of the estimated amounts. The
<br />M annual amount for each item shall be accumulated by Leader 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 beeortte delinquent.
<br />It at any time the total of the payments laid by Lender for ittms (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 out -sixth of the estimated payme ss or credit the excess over one -sixth of the estimated payments to subsequent
<br />payments by Btiniuw2r, at that aptlan at Borrower. If the total of the payments made by ftOrmwer for item (a). Ib1. or lc) is
<br />iasuffieient to pay the Item when due. then Borrower shall pay to Lender any amount necessary to make up the deficiency on or
<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 ftuured by the Secretary are insured under programs which require advance payment of the
<br />entire mortgage 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 payment shall also include either: (i) an installment of the
<br />annual mortgage insurance premium to be paid by Leader 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 tunount 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 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 account shall be
<br />credited with the balance remaWng 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 Irstallmeats for items (a), (b) and (c).
<br />3. Application of Payasats. All payments under paragraphs I and 2 shall be applied by Lender as follows:
<br />EIM. to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by that 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 />SE + to any taxes. special amessraw.as, leasehold payments or ground rents. and fire, flood and other hazard insurance
<br />premiums. as required:
<br />Tf;I , to interest due under the Note,
<br />FOUR , to amortized .(m of the principal of the Note,
<br />EIM, to late charges dui: sunder the Note.
<br />4. Fkfe, Flies aced OOer Hazard iasaraace. Borrower shall insure all improvements on the Property. whether now in existence
<br />yr suosryiicm i�' f3tiAIC . a6.i .any herds+ .:tjaltiM =nd cen»'ngeQ i*_ct»_ir+_S 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 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 Leader immediate notice by mart: Il.cader may make proof of loss if not made prompt-
<br />ly by Borrower. Each insurance company r000=ed is hereby authorized and directed to make payment for such lass directly to
<br />Leader, instead of to Borrower and to LevAw iointly. All or any part of the insurance proceeds may be applied by Lender, at its
<br />option, either (a) to the reduc7ion of the indebtedness render the Note and this Security instrument, first to any delinquent
<br />amounts applied in • fte order. nits Paragraph 3. and them ta. prepayment of principal, or (bp to the restoration or repair of the
<br />damaged property, tatty-x( VI;ation of the proceeds to the principal shall , not extend or postpone the due date of the monthly
<br />payments which are mf -t d to in Paragraph 2, or change the amount of sirrh payments. Any excess insurance proceeds over an
<br />amount ngtrinai In pay all outstanding indebtedness under the *Mote aced: dm's Security Instrument shall be paid to the entity legal-
<br />ly entitled theta:+:.
<br />In the event of foreclosure of this Security instrument i.-c c r =, wwsfer of title to the Property that extingu Acs the in-
<br />debtedness. all right. title and interest of Borrower in and to policies in force shall pass to the purchase -
<br />S. Preservation and Maiatemance of the Property. Leat3ebQW& 13rtxower shall not commit waste of destroy, dhcage or
<br />substantially change the Property or allow the Property to tfc rxate„ reasonable wear and tear exccixai. Lender may inspect
<br />the property if the property is vacant or abandoned or the laam Es.. its d.- salt. Lender may take reasor, abre action to protect and
<br />preserve such vacant or a1-rni3oned property. If this Securrr� fr stcmm=: a on a leasehold. Borrower shall comply merit the 910' -i-
<br />.siom of the lease. If •BIormwts acquires fee title to the Pro j rj- -,.rhe remehold and £ee, rule shall not be merged =lam llmder
<br />agrees to the Mgrtmr 1b, writing. :
<br />6. Cttaa'gtis: (u Borrower and Protectitta of Leaders Rights is tibe FrapW:r.13orrower shall pay all governmeatpL o¢ mani zeal
<br />charges. fines and impositions that are not included in Paragraph 2. ,Xo rower shall pay these obligations on time diraz tp eta rlie
<br />entity which is owed the payment. if failure to pay would adversely alTe:t Lender's interest in the Property. uporz Leader's re-
<br />quest Borrower shall promptly furnish to Lender receipts evidencing these payments.
<br />if Borrower fails to matte these payments or the payments required by Paragraph 2, or fails to perform any other coyeuants and
<br />agreements contained in this Security rm=u*rent. or there is a legal proceeding that may significantly affect Lender's rights in
<br />the Property (such as a proceeding in bmikr ptcy. 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. Candemanloo. The proceeds of any award or claim for damages, direct or consequential, in connection with any condem-
<br />nation or other taking of any pan 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 />/. Fees. Lender may collect fees and charges authorircd by the Secretary.
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<br />/. Fees. Lender may collect fees and charges authorircd by the Secretary.
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