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<br />90AO 100420
<br />1. Pastsreat of Frheipal, Interest acrd Isle G'hur. Borrower shall pay when due the principal of, and interest on, the debt
<br />evidenced by the Note and late charges duo under the Note.
<br />_. Moa1W ftyaseats a1 Tries, Iasttratwce and Otlstr Chwies. Borrower shall include in each monthly payment, together with
<br />the principal and interest as set forth in the Note and any late charges, an installment of any (a) taxes and special assessments
<br />levied or to be levied against the Property, (b) leasehold payments or ground rents on the Property. and (c) premiums for
<br />insurance required by Paragraph 4.
<br />bath 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. Leader shall hold the amounts collected in trust to pay items W. (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 />payraz is required to pay such items when due, and if payments on the Note are current, then Lender shall either refund the
<br />excess seer one -sixth of the estimated payments or credit the excess over one -sixth of the estimated payments to subsequent
<br />paymmis. by Borrower, at the option of Borrower.. if the total of the payments made by Borrower for item (a), (b), or (c) is
<br />[asst f3_fmt to pay t$elie=wtjw due, t@eaa Pr7rKow*Fr sltaif pad to Lender anJ amount necessary to make up the deficiency on or
<br />before the date the item becomes due.
<br />As used In this Security Insutr,ariW, rtRSUrl4' raeanu the Secretary of Housing and Urban Development or his or Ner.
<br />designee. Most Security InstrUMMIfi Ittsrs:�:1:�,; 04e. Secretary are uysured under programs which: rNuire advance payment of tb.e
<br />entire mortgage insurance prematust, > f IfrJs,`aes a7 y %nstrumilx fs or was insured under a progr n. YfWch did not require advaarce
<br />payment of the entire mortgage insurance prem:auutr then each monthly payment shall also incltui,edther: trip an insteitmcat Qf the
<br />annual mortgage u=rance premium to be Laid by Lender to the Secretary, or (h) a monthly charge i acad 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 heU lyy the
<br />Secretary, each monthly charge shall be in an amount equal to one-twelfth of one -half percent of the outstanding prier pal
<br />balance due on the Note.
<br />If Borrower tenders to Lender the fall payment of ail sums secured by this Security Instrument. Borrower's; account shall be
<br />credited with the balance remaining for all Installments for items (a), (b) and (c) and any meetvw i - morose premium
<br />Installment that lender has not become obligated to pay to the Secretary. and Lender shall promptly refund my excess funds to
<br />Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lau3er, aerruwes s account shall be
<br />credited with any balance remaining for all Installments for items (a), (b) and (c).
<br />3. Appfleatlom of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as foNows:
<br />ED=, to the mortgage insurance premium to be paid by Lender 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 />tom, to any taxes, special assessments, leasehold paymem¢s or ground rents, and fare. flood and other hazard insurance
<br />premiums, as required;
<br />interest due under the Note;
<br />URT , to amortization of the principal of the Note;
<br />to late charges due under the Note.
<br />4. Fete, Flood and Other Hoxm d Insurance. Borrower shall insure all improvements 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 shat] 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 such loss directiv 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) to the reduction of the indebtedness under the Note and this Security Instrument, first to any delinquent
<br />amounts applied in the order in Paragraph 3. and then to prepayment of principal, or (b) to the restoration or repair of the
<br />damaged property. Any application of the proceeds to the principal shall not extend or postpone the due date of the monthly
<br />payments which are referred to in Paragraph 2, or change the amount of such payments. Any excess insurance proceeds over an
<br />amount required to pay all outstanding indebtedness under the Note and this Security Instrument 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 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 purchsser.
<br />s. Prrsemdon and Maintenaace of the Property. 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 />G.. CrarM to Borrower sad Ftafra d-M oP Loader's Rights in the Property. Borrower sbal . pay all governmental or municipal
<br />dxxgm fines and impositions dsat: axe not mduded in Paragraph 2. Borrower shall pay rftem obligations on time directly to the
<br />eatiiy which is owed the payrnerzL-. L£ c. -Lxre tA. gay would adversely affect Leader's iatwwr in the Property. upon Lender's m
<br />t Borrower shall promptly turn( »1x era L=R.T receipts evidencing these payments.
<br />if Borrower fans to make these paymew s• em Use payments required by Feragin h 2, or fails to perform. any other covenants and
<br />Wmments containef in this Se� Gn �sv rrreut of there is a legal proceeding that may sig ?jrt6nrly alT¢t Lender's rights in
<br />dw property (such as a proceedEr4 is bmitrupigy, for cour£em ation or to enforce laves ar cei- m-ktions), then Lender may do and
<br />pay- whatever is necessary to protect the value of the Prapaity: and Lender's rights in the Froperty, including payment of tares.
<br />hazard insurance and other items mentioned in Paragraph 2.
<br />Any amounts disbursed by lender under tells• Paragraph shall become an additional debt of Borrower and be secured by this
<br />Security Instrument. These amounts steal: bra w 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. Condesnation. 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 Leader 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 />i. Fees. Lender may collect fees and charges authorized by the Secretary.
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