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<br />----!h monthly iastalitnsnt for limns (s), (b). and (c) shall equal one twelfth of the annual emounts, as reamsonat>t It tad
<br />Lender, plus an amount sufficient to maintain an additional balance of not more than one -stdh of the estimated amounts.
<br />ne full annual amount for each clam shall be aawm bled by Lender within a period ending one month before an Item would
<br />- -- deiinqu nit. lender shall hold the amounts collected in crust to pay Items (a), (b), and (c) before they become delinquent.
<br />at any time the total of the payments held by Lender for Items (a). (b), and (c), together with the future mouthy payments
<br />such Items payable to Lender prior to the due data of such kwn% exceeds by more than one -s5dh the estimated amount
<br />psym@nts required to pay such Items when due, end If pair mts on the Note are current, then Lender shall either refund
<br />_ excess over one-sixth of the estimated payments or credli the excess over one•slxth of the estd-natad paymeals to subsequent
<br />by Borrower, at the option of Borronnr. it the total of the payments made by Borrower for Item (a), (b), or (c)
<br />- insufficient to pay the Item when due, than► Sorrow or stud pay to Lender any amount necessary to make up the deficiency
<br />or before the date the Item becomes due.
<br />used in this Security instrument. 'Secretary, means the Secretary of Housing and Urban Development or his or her
<br />_- Most Securfty Instruments Insured by the Secmtary are insured under programs which require advance payment of
<br />entire mortgage insurance premium. it this Security Instrument Is or was Insured under a program which did not require
<br />-__ payment of the entire mortgage Insurance premium, then each monthly payment shall also include either @ an Instalment
<br />the annual moRaage insurance premium to be paid by Lander to the Secretary, or @ a monthly charge instead of a mortgage
<br />_ = premium It this Security Instrument Is hold by the Secretary. Each monthly Installment of the mortgage insurance
<br />-.. alhalt be In an amount sufficient to accumulate the full annual mortgage Insurance premium with Lender one month
<br />••iw. to the date the full annual mortgage Insurance premium Is due to the Secretary, or H this Security instrument Is ihed
<br />.s, the Secretary, each monthly charge shag be in an amoarnit equal to one—twelfth of one -half percent of the outstanding principal
<br />Note.
<br />131,x:rower tat/2m to Lender the full payawt of all sutra a-vired by this Security Instrument, Borrower's account shall
<br />ae(fited ve—� the balance remaining for N knstaihtterttz 1ty. moms (a), (b). and (e) and any mortgage Insurance pretmhm
<br />that Lender has not become obigatad to pay tax Iltcr Secretary, and Lender sha11 ptompty refund any excess funds
<br />_= Borrower. 15mediately, prior to a foreclosure sale of Z!m, Aimerty or its acquisition by I -oTdzr, Borrower's ammunt shag
<br />_ = credited Wi'h'any balance remaining for all Installments ft, items (a), (b), and (c).
<br />3.,, r W11catlon of Payments. A!f payments under paraglmf^I-r. tt and 2 shall be applied by Lender as follows:
<br />E to the mortgage Insurance premium to be p'a'd by. bender to Vae Secretary ar to the monthly charge by the Secretary
<br />d of the monthly mortgage Insurance premium, un!n-as 1."z wer paid the entire mwtgsge Insurance premium when this
<br />Instrument was signed;
<br />s. Second, to any taxes, special assessments, leasei?rrald payments or ground rents, and fire, flood and other hazard insurance
<br />7rertmiums, as required;
<br />Third, to Interest due under the Note;
<br />Fourth, to amortization of the principal of the Nola;
<br />to late charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall Insure all improvements on the Property, whether
<br />sew L-a existence or subsequently erected, against any hazards, casuattim and contigencles. including fire. for which Lender requires
<br />Insurance, This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shad also
<br />Insure all Improvements on the Property, whether now In existence or suLsequently erected, against loss by hoods to the extent
<br />r=uired by the Secretary. AN Insurance shag be carried with companies approved by Lender. The insurance policies and any
<br />renewals shall be held by Lender and shall include toss payable clauses In favor of. and In a torte acceptable to. Lender
<br />In the event of loss. Borrower shall give Leniw Immediate notice by mail. Lender may make proof of lass it not made
<br />promptly by Borrower. Each Insurance cot - arty concerned is hereby authorized and directed to make paynten1t ftir such loss
<br />directly to Lender. Instead of to Borrower and to Lender jcLntly. All or any part of the Insurance proceeds may be applied
<br />by Lender, at its option, either (a) to the reduction of the a tddatedness under the Note and this Security Instrument, first to
<br />any delinquent amounts applied in the order in Paragraph Z, and then to prepayment of 73facipal. or (b) to the restoration
<br />or repair of the damaged property. Any application of the ptr„ cols to the principal sir i r. -zl extend or postpone the clue date
<br />of the more tly payments which are referred to in Paragraph 2, or cttaagre rise amount W each payments. Any excess insurance
<br />proceeds ova, an amount requited to pay all outstanding indebtedness uudrs- Ime Note and this Security Instrument shag be
<br />"Id to the 'J)r legally entitled thereto.
<br />in the event of foreclosure of this Security Instrument or atha transfer of title to the Property that extinguishes the
<br />Indebtedness, all right, title and interest of Borrower in rar.'rry 't7 insurance policies in force shall pass to the purchase.
<br />5. Preservation and Maimem=ce of the Property, Leaseholds. Borrower shalt n= r+a,rtmit waste or destroy,
<br />damage or substantially charge the Property or allow the Property to deteriorate, reasonable wear and tear •ex= epted: Lender may inspect
<br />3' a property It the property +s ncanl or abandoned or Hr loan is in default. Lender may take reasonable action to pmlect
<br />and preserve such vacant er, abandoned property. It t111,s Security Instrument Is on a leasehold. Borrower shall comply with
<br />lte provisions of the lease. a Borrower acquires tee title to the Property. the leasehold and fee title shall not be merged unless
<br />Lender agrees to the merger in writing.
<br />6. Charges to Borrower and Protection of Lendeft Rights in the Property. Borrower shall pay all
<br />governmental or municipal xhar ges, fines acrd Inpositons that are not included in Paragraph 2. Borrower shall pay these obligations
<br />an time directly to the entity. mhictt is owed the paymenl- il' f,iture to pay would adversely affect Lender's interest in tine Property.
<br />upon Lenders request Somway dPA prcrnr,ai:,I! furnish to. Loader receipts evidencing these payments.
<br />It Borrower fails to make these 15c'ydn01"i's ter lbe payments required by Paragraph 2, or tangs to perfarrrr any, ether =Yw0- ^ts
<br />and agreements contained In *dii Indmment, or there is a legal proccading that may sfgnificwTil; affect Lwdecr rghts
<br />in the Property (such as a pmaeding in bankruptcy. for condemnation or to enforce fawn, or regulations), then Lea de may.
<br />do and pay whatever is nacesw y to protect the value of the Property and Lenders dglils. Iii the Property, including psymeof
<br />of taxes. 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
<br />by this Security Instrument. These amounts shall bear interest from the date of disbursement. at the Note rate. and at the
<br />option of Lender, shall be Immediately due and payable.
<br />FHA %cbrasjj Cced of Trust • 12 )S9
<br />Page 2 of 5 (form FCTN2.pfm) 4t,A
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