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<br />90-106546
<br />t, payout of FrIsciital, iateress aced Late Craps.. Borrower a.Irall pay when due the principal of. and interest on, the debt
<br />e%idenced by the Note and late charges due under the Note.
<br />3. Meaft ftytaeab at Yaxeta,11"are a aanl Otter Crargaa. 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 kvied 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 (0). (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, 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 />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, arid if payments on the Note are current. than Lender shall either refund the
<br />excess rivet 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 Borrower for item. (a), (b), or (c) is
<br />Insufflelent to pay rite item when due, then Borrower shall pay to Lender any amount necessary to mate up the deficiency on or
<br />before the date the item becomes due.
<br />As used to 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 />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 Lender to the Secretary, orr iii) a monthly charge instead of a mortgage
<br />insurance premium if this Security Instrument is held by the Secretary. Each w-gatbly installment of the mortgage insurance
<br />pmaturn shalt be in an amount sufficieat to accumulate the Will annual mortgage insurance premium with Lender one month
<br />prior to the date the fitll 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 pati-ment of all 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 my 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 Leader, Borrower's account shall be
<br />credited with any balance remaining for all installments for items (a). (b) and (c).
<br />3. Apllcatloa of Payment& All payments under paragraphs I and 2 shall be applied by Lender as follows:
<br />a=, to the mortgage insurance premium to be paid by Leader to tl}e Secretary or to the monthly charge by the Secretary
<br />instead of the monthly mortgage insurance premium, unless li r-iv%rr p„td d-4 entire mortgage insurance premium when this
<br />Security Instrument was signed;
<br />SECOND. to any taxes, special assessments, leasehold pavtr,�,.,ti g_zund rents. and fire. flood and other hazard instr wo.,
<br />premiums. as required;
<br />TMRD. to interest due under the Note;
<br />FOURTI#. to amortization of the principal of the Note;
<br />13FTH • to late charges due under the Note.
<br />A. Fbe. Mood and Other Haaei insurance. Borrower shall insure all improvements on the Property, whether now in existence
<br />or SribMt[Ut itly ciftUd. AgAii,5t auji haeirda, casualties, and cortiagcncir.,. including fire, for which Lender r°..Cj *i3*�e Insurance.
<br />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 *,PJ1 give Lender immediate nmGi.t by mail. Lender may make proof of loss if not made prompt-
<br />ly by 3Qrrower. Each insurance mrmpany concerned is hereby airAorized and directed to make payment for such loss directly to
<br />Len&r. instead of to lorrower and to Lender ioir tly. All or any part of the insurance proceeds may be applied by Lender, at its
<br />option, either (a)' tv the tpd o:Yion of the indebredness under the Note and &rs Security Instrument, first to any delinquent
<br />antouats applied in the order an Paragraph 3„ aria' then to prepayment of prncipal. or (b) to the restoration or repay of the
<br />damaged property. Any applicaticn of the proceeds to the principal shall not ercend or postpone the due date of the monthly
<br />pty m=ts which are referred to fm P. -agraph 2. or change the amount of such payments. A" excess insurance proceeds over an
<br />am -hunt required to pay all outstanding indebtedness under the N :e and this Security instrivzetiC siaail be paid to the entity icy ,u-
<br />[�,�titled thereto.
<br />rn the event of foreclosure of this Security In'g:tvment or other transfer of title to the iirtoperty that exti.nyuishes the In-
<br />*ttedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the pnndiaser.
<br />9.. Preservation and Maiateaaawe of the Property, Leaseholds. Borrower shall not commit waste or destroy, dainWe or
<br />sub,12ndally change the Property an allow the Property to deteriorate, reasonable wear and tear excepted. Lender may iuepe d
<br />the property if the property is vacant or abandoned or the loan is in default. Lender may take reasonable action to protecr,md
<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 tease. 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 />(iw Charges to Borrower and Protection of Leader's F404si fir rite Property. Borrower shall pay all governmental or municipal
<br />.vi)attyes. fines and impositions that are not included-in Puae}aph 2. Borrower shall pay these obligations on time directly+ to the
<br />entity which is owed the payment. If failure to lr:ty, would; adversely affect Lender's interest in the Property., upon Lender's re-
<br />quest Borrower shall promptly furnish to Leader receipts evidencing these payments.
<br />If Borrower fails to make these payments or the payments required by Parag ph 2, or fails to perform any: other covenants and
<br />agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in
<br />the Property (such as a proceeding in bankruptcy, 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. Condemnation. 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 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 entrty legally entitled thereto.
<br />g. Fees. Lender may collect fees and charges authorized by the Secretary.
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