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<br />90--- 106551
<br />1, la7ateat at PrfRi/al, tommeat atsd LaM Clow. Borrower shall pay when duc the principal or. and iutertit 0;1, the debt
<br />evidenced by the Note and late charges dote under the Nate.
<br />L momft fflsymmo of Ta :as, hues," and Other Cbatgn. 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) tewhold payments or ground rents on the Property, and (c) premiums for
<br />insurance required by Paragraph 6.
<br />Each meauhty installment for items (a). (b) and (c) shall equal one - twelfth of the annual amounts, as reasonably estimated by
<br />Leader, 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 becoma delinquent.
<br />If at any time the total of tht 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 requited 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 -sistb of the estimated payments to subsequent
<br />payments by Borrower, at the option of Borrower. If the total of the payments malt by mower for item (a). (b), or (c) is
<br />insufficient to pay the item when due, then.Borrower shall pay to Lender any amount necessary to make up the deficiency on or
<br />before the date the item becomes due.
<br />Ace used in this Security Inatniment, ,Secretary , meant the Secretary of Housing and Urban Development or his or her
<br />drsigmee. Most Security Instruments Insured by the Secretary are insured under programs which require advance payment of the
<br />entire mortgage insurance premium. if 111Is Security Instrument is or was insured under a program which did not require advance
<br />payment of rite entire mortgage insurance premium, then each monthly payment shall also include either: (1 an installment of the
<br />annual mortgage insurance premliun to be paid by Lender to the Secretary, or (id) a monthly ebarV instead of a mortgage
<br />Insurance premium if this Security Instruimout is held by the Secretary. Each monthly installment 01 utir mortgage insurance
<br />to to dum shall be in an amount sufficient ip rucumulate the full annual mortgage insol AN-M premium wish lender oar_ month
<br />7dor to the date the full annual moripso Insurance pxmi um is due to the Secretary. or if this Secrtiaa IInatrument Is Vaeld by the
<br />Secretary. each monthly charge shall he In an amount equal to one - twelfth of one -halt percent of tbm outstanding principal
<br />balance date on the Note.
<br />If Borrower tenders to Lender the full pJsm-unt of all sums secured by ibis Security Instrument, BOTMwer's account shall be
<br />credited with the babmm remaining for all Installments for items (a), (b) and (c) and any 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 Lender, Borrower`s account shall be
<br />credited with any balance remaining for all installments for items (a), (b) and (c).
<br />J. ApweIaioo of Paneats. All payments under paragraphs I and 2 shall be applied by Lender as follows:
<br />]M, t,_. sic mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretary
<br />instead of that monthly monsage insurance premium, unless Borrower paid the entire anurtgage insurance premium when this
<br />a'surity fasttument was signed, , _ ,, ham-0 snga.tarlM
<br />�QC �, to any taxes. special assessments, lease = �mnents of ground reuty. asw;..z. f100.. =d athcr ham-0
<br />premiums. as required.
<br />MWto Interest due under the Note:
<br />to , to amortization of the principmt of the Note;
<br />jW, to but charges due under the Note.
<br />4. Tire, Flood aN Other Hazard tasaraace. Borrower shall Insure all improvemenu on the Property, whether now in existence
<br />or subsequently awed. against any harards. umuafiles, auni cc atingga ics, i.clud•iag f1m for wbich Lender r!_,ires inrvanw.
<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 />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 mate 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 directly to
<br />Lender, instead of to Borrower and to Leader 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. fast 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 itn-
<br />debtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />s. Prewrvatim and IMAalnteaance of the Property, Laseholds. Borrower shall not commit waste or destroy, damage or
<br />substantially change the Property or allow the Property to deteriorate, reasonable wizdr and tear excepted. Lender mail 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 pmmy y. if this Security Instrument is on a leasehold;. Sorrowersbat! comply with the provi-
<br />sions of the lease. If Borrower :wq,i&ei fee title to the Property, the leasehold and fee title shall. not be merged unless Lender
<br />agrees to the merger in writing..
<br />6. Charges to Borrower saui, viecttos of Leader's Riaits in the Property. Borrow=: shalt pay all governmental or municipal
<br />charges. fines and impositions that ate not included in Paragraph 2. Borrower shall pay►itese obligations on time directly to the
<br />aaty wki& is owed the payment. if failure to pay would adversely affect Leader's umerest in the Property, upon. Lender's re-
<br />ggest IIorrow e= shall promptly furnish to Lender receipts evidencing these payments.
<br />If 39 row v..- fluid's to make these paymentsor the payments required by Paragraph 2, ar'f'ails to perform any other covenants and'
<br />agree artty contained in this Security Instrument. or there is a legal proceeding that may significantly affect LeMrzr�e.tights In
<br />the Property, (such as a proceeding in bankruptcy. for condemnation or to enforce lmwi tar m-gulations), then Lender only do and
<br />pay whater:er is riepesmmy tee, protect the value of the Property and Lender's rights its tiro 9- wrierty, including payment of taxes.
<br />hazard: insarxace and other; items mentioned in Paragraph 2.
<br />Any amt w= disbursed by tender under this Paragraph shall become an additional d'ebr of Borrower and be secured by this
<br />Security rasavment. Thew amouuus dmAr bear interest from the date of disbursement;. at- the Note rate, and at the option of
<br />Lender, shall be immediairly,due and- pdyable.
<br />7. Condeatnstion. 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 entity legally entitled thereto.
<br />S. Fenn. Lender may collect fees and charges authorized by the Secretary.
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