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<br />90°--106458
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<br />1. f'artseal of ltirtcyaf„ isteewt and late Cbarge. Borrower shall pay when due the principal of. and interest on, tine debt
<br />evidenced by the Note and late chutes due under the Note.
<br />3, Meaft flymeals of Taw, Itta Ir"m MA oher Cbartes. 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 oe 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 />Each monthly installment for items (a), (b) and (c) shall equal one- twelfth of the annual amounts. as reasonably estimated by
<br />Lender, pies an amount sufficient to maintain an additional balance of not more than one -sixth of the estimated amounts. The
<br />foil annual amount tot 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 (a). (b) and (c) before they become ddinquer:t.
<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 mote than one -sixth the estimated amount of
<br />paytne as 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 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 Borro%vt for item (a). (b), or (c) is
<br />insufficient to pay the item when due, then Borrower shall pay to I ender 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 of her
<br />designee. Most Security Instruments insured by the Secretary are insured under programs which require advance payment of the
<br />entire mortgage insurance premium. if this Security nnstrument 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 />annuaD mortgage insurance premium to be paid by Lender to the Secretary, or (H) a monthly charge Instead of a mortgage
<br />insurarzoe premium if this Security Instrument is held by the Secretary. Each monthly installment of the mortgage Insurance
<br />premium 0211 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 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 Nwxa
<br />if Sottower tenders vo Eender the full payment of as sums secured by this Security lnstrument. gvrtvwee"s account shall be
<br />credited wfrb the bi1163�D. remaining for all h1staltmmts for iu ens bay. (b) and (c) and any m rN -,gaW n -surance premium
<br />iastalslsmart titer f rm,.s Ih3s not become obligated to par to, %hv 5m.otair. and Lender shall promipltl} mc:mtaa',D a-W excess funds to
<br />Borrower Un t* prior to a foreclosure sale of tlr: Property or its acquisition by Lendeb, L&,v:r.v,wves scant shall be
<br />credited with any babnow remaining for all Installrueels for items (a), (b) and (c).
<br />3. Apocation of Paynests. All payments under paragraphs 1 and 2 shall be a;T rd by Lender as follows:
<br />F1S$T, 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 />SECOND, to any taxz, special assessments. leasehoLd payments or ground rents, and fire, flood and other hazard insurance
<br />premiums, as required;.
<br />MW77 iTRQ. to interest dun. under the Note;
<br />to to amardattlon of the principal of the; Luse:
<br />. to. Gee charges due under the Note.
<br />6. Fine, Flood out Odher Hazard insnrance, Borrow r shall ia_cvre ril improvements on the Prwptmty, whether now in existence .
<br />of subs—quently erem 4. aViner any hazards, casuaE es. and cordaiNNencies. including fire, for winch Lender requires insurance.
<br />This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shah also insure all
<br />improvements on the Property, whether now in existence or subseci=ntly erected. against loss by floods to the extent required by
<br />the Secretary. All insurance shall be c>J:re,3 with companies apprawot by Lender. The Insurance gcriicies and any renewals shall
<br />be held by Lender and shall include km, sayable clauses in favor rf•, •and in a form acceptalKe za-, 11.ender.
<br />In the event of loss, Borrower shall give Lender immediate notice �zy mail. Lender may make prfsof. taf loss if not made prompt-
<br />ly by Borrower. Each insurance company concerned 6. itcreby authorized and direxted to make payment for such lrss directly to
<br />Lena =, instead of to Din ower and to Lender jointly. All or any part of the ins;zromm proceeds may be applied by. mender, at its
<br />option, either (a) to.gl^. reduction of the indebtednes 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 />damage& mroperty. Any application of the proceeds to the principal shall not extend or postpone the due date of the monthly
<br />payment 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 tight, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />S. Preservation and, '_trWatensaree all the Property, Leawhoids. Borrower shall not commit waste or destroy, damage or
<br />substantially change rk.-a Property or allow the Prr;�trty to deteriorate. reasonable wear and tear excepted. Leader may inspect
<br />the property if the property, is vacant or abandenei far the loan is in default. Leader may take reasonable aerial. ro protect and
<br />preserve
<br />ionsof the lease. if abandoned
<br />acquires Pee title In &eProperty.tthe !leasehold and fee tide hall not be mergied unless Lender
<br />agrees to the merger in writing.
<br />6. Charges to Borrower and Protection of lent its Rights in the Property. Ratrm'to-er shall pay all governmental or municipal
<br />charges, fines and impositions that are not iucl.Wtei in Paragraph 2. Borrower hall.17ay, these obligations on. time directly to the
<br />entity which is owed the payment. if failurcm; p &y would adversely affect Lender fr. interest in the Property. up. an Lender's re-
<br />quest Borrower shall promptly furmist . to, r e:rd -.0 retaeipts evidencing these payrmsis.
<br />If Borrower fails to make these paymrwtIr, or Ifte ptyanents required by Paragraph 2. or fails to po farm any other covenants and
<br />agreements contained in this Secu.rvy iymram:=(_ or there is a legal proceeding that may sigruumily affect Lender's rights in
<br />the Property (such as a proceeding fh,Wa ;talstt7; for condemnation or to enforce laws or regulailons), then Lender may do and
<br />pay whatever is necessary to protect the vaifae of the Property and Lender's rights in the Property. including,payment of taxes,
<br />hazard insurance aniX other items mentioned s Paragraph 2.
<br />Any amounts disbursed by tender 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. Coadentasitlon. The proceeds of any award or claim for damages, direct or tionsequential. in connection with any condem-
<br />nation or other taking of any part of the Property, or for conveyance in place of asndemnation, 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 ibis 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.
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