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<br />1. i"aytneat o! hfadpd, lattresl slid Late Cbaege. Borrower shall pay when due the princlpal of. and interest on, the debt
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<br />evidenced by the Note and late charges due under the Note.
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<br />!. Moalttb fAtytttats of Tat ", lasttrnat:a ad Otber Ciarlim 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 (al taxes and special assessments
<br />Ieasehold or ground rents on the Property, and (c) premiums for
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<br />levied or to be levied against the Property. (b) payments
<br />insurance required by Paragraph 4.
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<br />Each monthly installment for items W. (b) and (c) shall equal one - twelfth of the annual amounts. as reasonably estimated by
<br />balance of not more than one-sixth of the estimated amounts. The
<br />Lender, plus an amount sufficient to maintain an additional
<br />full annual amount for each item shall be accumulated by lender within a period ending one month before an item would
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<br />become delinquent. Lender 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 />due dates items, exceeds by more than one -sixth the estimated amount of
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<br />for such items payable to Lender prior to the of such
<br />refund the
<br />payments to
<br />reddit
<br />rss ove r on � th oihe estimaatted paymentsor hencxcocsnsrotverlona -dash 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). of (c) is
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<br />insufficient to pay the item when due, then Borrower shall pay to Lender any wnuunt necessary to mate up the deficiency on or
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<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 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 />insurance then each moodily payment shall also include either: (1) an installment of the
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<br />. .
<br />payment of the entire mortgage premium.
<br />annual mortgage insurance premium to be pad by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage
<br />by Secretary. Each monthly installment of the mortgage insurance
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<br />Instuautee premium if this Security Instrument is held the
<br />inrcrnnlum shall be in an amount sufficient to accumulate the full annual mortgage insurance premium with Lender one montli
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<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 />be in amount equal to one- twelfth of one -half percent of the outstanding principal
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<br />Secretary, each monthly charge shall an
<br />balance due on the Note.
<br />If Borrower leaders to Lender the full payment of all sutras secured by this Security Instrument, Borrower's account shall be
<br />it
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<br />credited with the balance remaining for all installments for items (a), (b) and (c) and any mortgage insurance premium
<br />to to the Secretary, and Lender shalt promptly refund any excess funds to
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<br />installment that Lender has not become obligated pay
<br />Borrower. Immediately prior to a foreclosure sale of the Property or Its acquisition by Lender. Borrower's account shall be
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<br />credited with any balance remaining for all installments for items (a), (b) and (c).
<br />3. Application of Paymeats. AB payments under paragraphs I and 2 shall be applied by Lender as Wawa:
<br />FIRCI to the mortgage + ^��*� ^ce premium to be paid by Leander to the Secretary or to the monthly chuTge by the Secretary
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<br />instead of the monthly mortgage insurance premium, unless Borrower paid the entire mortgage insurance premium when this
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<br />Security Instrument was signed;
<br />S , to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance
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<br />premiums, as required.
<br />THGi±,I?. to interest due under the Note,
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<br />FOU-M,
<br />due undo Note of the Note;
<br />j IM at charges the
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<br />d. FIM, Flood and Otter Hazard Ittsaraam. Borrower shall insure all improvements on the Property. whether now in existence
<br />or subsequently erectea. against any hazards, casuaitiR, and Wittinterici2S. including fire. :°: hie t Lender .eq„; eg ina,tan x:
<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 />be wine companies approved by Lender. The insurance policies and any renewals shall
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<br />the Secretary. AU insurance shall carried
<br />be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to. Lender.
<br />IIo rite event of loss, Borrower shall give Lender immediate notice by mail. Lender may maize proof of loss if not made prompt-
<br />Ty by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss directly to
<br />Lender. instead of to Borrower and to Lender jointly. All of any part of the insurance proceeds may be applied by Lenderrat Rs
<br />the indebtedness under At Note anti this Security Instrument. first to any delinquent
<br />option, eithes Qab to the reduction of
<br />amounts appliexa in the order in Paragraph 3, and then to prepayment of principal. or (b) to the restoration or repair of rite
<br />Any application of the proceeds to the principal shall not extend or postpone the due date of the monft4y
<br />damaged propery.
<br />payments which are referred to in Paragraph 2. or change ,fie amount of such payments. Auy excess insurance proceeds over an
<br />amount required to pay all outstanding indebtedness under ahe Now and this Security Instrueaeat shall be paid to the entity legal -
<br />ly entitled thereto.
<br />In the event of foreclosure of this Security rastrument 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 purchaser.
<br />S. Prdemation sad Mtdatenance of the Property. Leaseholds. Borrower shall not commit waste or destroy, damage or
<br />substantially change the Property or allow the Property to dom''orate, reasonable wear and tear excepted. Lender may Inspect
<br />if the is vacant or abandoned or the Ww.. W in default. Lender may take reasonable action to protect and
<br />the property property
<br />preserve such vacant or abandoned property. if this Security iil__a11ment is eau a leasehold, Borrower shall comply with the provi-
<br />lease. if Borrower acquires fee thle to the Property, tfle k2sehoid and fee title shall not be merged unless Lender
<br />slons of the
<br />agt'ees to the merger in writing.
<br />Ch. Chgros, tee iormwer and Protection at l emte s dtLOM Cm the (?rapetty. Borrower slnaJJ Pay all governmental oc mltnil ipal
<br />that induded, in Paragraph 2. Borrower shall pay these Obligations on time direiziiy t» the
<br />cbarges fines and impositions are not
<br />wi y which is owed the payment. If failure to gay would adversely affect Lender's interest in the Property, upon: f r ltlir r s. re-
<br />quest Borrower shall promptly furnish to Lender receipts evidencing these payments.
<br />If Borrower fails to make these payments or the payments required by Paragraph 2, or fails to perform atty other covets nts and
<br />agreements contained in this Security Instrument. or there is a legal proceeding that may significantly affect Lender's tipjnts in
<br />in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may do and
<br />the Property (such as a proceeding
<br />pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, including payment of tares,
<br />hnznrd insurance and other items mentioned in Paragraph 2.
<br />Any amounts disbursed by tender under this Paragraph shall become an additional debt of Borrower and be secured by this
<br />bear interest from the date of disbursement, at the Note rate, and at the option of
<br />Security Instrument. These amounts shall
<br />Lender, shall be immediately due and payable.
<br />9. Condemnation. The proceeds of any award or claim far damages. direct or consequential, in connection with any condem-
<br />nation or other taking of any part of the Properly, or for conveyance in place of condemnation. arc hereby assigned and shall be
<br />paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the quote 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 it a entity legally entitled thereto.
<br />8. Fed. Lender may collect fees and charges authorized by the Secretary.
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