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<br />W.
<br />90- 40653
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<br />1, p#yttstat at PrlaeW. Ialtttlsl sat! Late Citarli . shall pay when due the principal of, and inleteat on, the debt
<br />evidenced by the Note and late charges due under the None.
<br />2. hlaatNT Palttneate of Taass. itrerraaes atN otrae Chaagea. Boct%mer shall include in each monthly payment, together with
<br />and interest as set forth in the Note andh y� Iate�eharges. +u special
<br />Pml+rr and
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<br />the principal find c premiums for
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<br />levied or to be levied against the Property, (b) kase pa) 6
<br />insurance required by "taph 4.
<br />Each monthly installmnl for items (a), (b) and (c) shall equal one-twelfth of the annual amounts, as reasonably estimated by
<br />not mote than one -sixth of the estimated amounts. The
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<br />Lender. plus an amount sufficient to maintain an additional�utce of
<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. 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 mtonthh payments
<br />due dates of such items, exceeds by mote than one -sixth the estimated amount of
<br />for such items payable to Lender prior to the
<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 one -sixth of the estimated payments or credit the excess over one -sixth of the estimated payments to subsequent
<br />by Borrower, at the option of Borrower. if the total of the payments made by Borrower for item (a), (b), Or (c) is
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<br />payments
<br />insufficient to pay the item when due, theft Bormwet shall pay to Lender any amount necessary to make up the deficiency on or
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<br />hcfatr the date the item becomes thtr.
<br />the
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<br />As used to el Security Instrument. "Secretary" means the Secretary of Housing and Urban De%vlopmens or his of her
<br />designee. Mast Security instruments insured by the Secretary are Insured under programs which require payment of the
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<br />which did
<br />entire mortgage insurance Premium. If this Security instrument is or was insured under a program which did not require advance
<br />of the entira mortgage insurance premium, then each monthly payment shall also include either: (i) an installment of the
<br />payment
<br />atmual mortgage insurance pre alum to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage
<br />insurance premium if this Security Instnimeat is held by the Secretary. Each monthly installment of the mortgage insurance
<br />premium shall be in an amount sufficient to accumutate the full annual mortgage insurance premium with Lender one month
<br />insurance Is due to the Secretary, or if this Security Instrument is held by the
<br />prior to the date the f3ht1 annual. mortgage premium
<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 Itnders to Leader the full payment of all sums secured by this Security Instrument, Borrower's account shall be
<br />credited with rtes: bak am at mining fc-T T2 installments for items (a). (b) and (c) and any mortgage insurance premium
<br />installment tl* Lender has nor 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 installments for items (a), (b) and (c).
<br />3. Applieaders of Paymats. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />EM, 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 />S-mvrity Instrument was segued;
<br />SECOND, to any taxes. special assessments, leasehold. payments or ground rents, and fire. flood and other hazard insurance
<br />Mmiumc, as acquired;
<br />THIRA, to tnt:erest due under the Note;
<br />FOrJ ,. t.m amortization of the principal of'the Noise;
<br />FWr to bete charges due under the [Vote.
<br />6. Flm VkQd and Other Hazard Iasaraace. Borrower shall insure all improvements on the Property, whether now in existence
<br />or subsequendy erected, against any hazards, casualties, and comingenCiea, iuelttdfys rite. for which, Leader requirm Insurance.
<br />in and for the periods that Leader requires. Borrower shall also insure all
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<br />This iasuratrae shall be maintained the amounts
<br />improvements an the Property, whether now in existence or subsequently erected, against loss by floods. to the extent required by
<br />be mith companies approved by Lender. The insurance poll e& and any renewals shall
<br />the Secretary. All insurance shall canted
<br />be held by Lender and shad include loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />In the event of loss, llor a wrr shall give lender immediatm notice by mail. Lender may maize proof of loss if not made prompt-
<br />ly by Borrower. Each inwrurwicc. company concerned is herd y, authorized and directed to make payment for such loss &ccdy to
<br />Lender. instxad of to Borr.-qp:r and to Leader jointly - ,tall. or any pan of the in%uraose Cnoceeds may be applied by Lender. at its
<br />urAa the Note and this Swa=' Y Instrument, first to any delinquent
<br />option, dLber (,a) to the reduction of
<br />amounts applied in the order in Paragr ph. S. and ales 0.? prepayment ref principai. or (b) to the restoration or repair of the
<br />Any of tla Creels. era ft principal sl T11 not extend or postpone the due date of the monthly
<br />damaged property. application
<br />payments which are referred to in Paragrapa T, or rru=F rye amount of such paynicum- Any carcass assurance proceeds over an
<br />amount required to pay all outstanding indebct&M, iand= :We Note and this Security Easix mm�ent shall be paid to the entity legal-
<br />ly entitled thereto.
<br />In the event of foreclosure of this S=mft:F Get or other transfer of title to the Properry that extinguishes the in-
<br />debtedness, all right, title and interest of llamsw.er r.m =d to insurance policies in force shaft pass to die purchaser.
<br />S. Preservation and Mainteasaee of Ube 7ftmVi:3s,. E mseholds. Borrower shall not c6imnit was!--te or destroy, damage or
<br />substantially change the�Flropertyy or allow'the PropesS a3-deteriorate. reasonable we& and tear excepted. Lender may inspect
<br />the property if the propea-y is vacant or abandoned Cr di- loan is in default. Lender ma-y. take reasonable action to protect and
<br />preserve smdtvacant or zaT=dc red property. If this Security Instrument is on a leasehold. Borrower shall comply with the provi-
<br />if Borrower fee title to the Property, the to sehold and fee title shall not be merged unless Lender
<br />sions of ehe'Icise. acquires
<br />agrees to the merger in writing.
<br />6. Charges to Borrswtr mma Protection of Leader's Rights in the Property. Borow-er shall pay all governmental or municipal
<br />charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to the
<br />entity which is owed the payment. If failure to pay would: adversely affect Lender's intetest in the Property. upon Lender's re-
<br />quest S6trnwer shall promptly furnish. to Lender receipts evidencing these payments:
<br />if Bormwes- fails to make these paymcsti.y or the payments required by Paragraph 2. or fails to perform any other covenants and
<br />agreements contained in this Security Instrument, ar there is a legal proceeding that may sipificailiiy affect Lender's rights 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 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 />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 />7. C sidessitation. 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 Lender to the extent of the frill 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 payment%. 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 />It. fen. Lender may collect fees and charges authorized by the Secretary.
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