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<br />90- x.06601
<br />Gach monthly ins— tallment for items (a). 1b!, and (c) shall eq:tal onc- twelfth of the annual amounts. as reasonably estimated
<br />by Lender, plus an amount sufficient to maintain an additional balame of not more than c,nc• sixth of the estimated) attiounts.
<br />The 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 Cite 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
<br />of payments required to pay Much items when due. and if payments on the Note are current, then Lender shall either refund
<br />the excess over onc•sixth of the estimated payments or credit the excess over tine-sixth of Cite estintatrd 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)
<br />Is insufficient to pay the item when due, then Borrower shall pay to Lender any amount necessary to make up the deficiency
<br />on or 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
<br />the entire mortgage insurance premium. If this Security Instrument is or was insured under a program which did not require
<br />advance payment of the entire mortgage insurance premium, then each monthly payment shall also include either: (i) an installment
<br />of the annual mortgage insurance premium to be paid by Lender to the Secretary. or (ii) a monthly charge instead of a mortgage
<br />insurance premium if this Security Instrument is held by the Secretary. Each monthly installment of the mortgage insurance
<br />premium shall be in an amount sufficient to accumulate the full annual mortgage insurance premium with Lender one month
<br />prior to the date the full annual mortgage insurance premium is due to the Secretary, or if this Security Instrument is held
<br />by the Secretary, each monthly charge shall be in an amount equal to one
<br />of one -half percent of the outstanding principal
<br />balance due an the Note.
<br />If Borrower tenders to Lender the full payment of all sums wcured oy this Security Instrument, Borrower's account shall
<br />be credited with the balance remaining for all installments for etemsS (a), (b), and (c) and any mortgage insurance premium
<br />installment that Lender ltas r ct become obligated to pay to the Secretary, .=:cf; Lender shall promptly refund any excess funds
<br />to Borrower. Immediately infar tom foreclosure sane of the Property or nits Jto uisition by Lender, Borrower's account shall
<br />be credited with any ba.'=.v rp t� aj- for all installments for items (ai: (kW and (c).
<br />3. Application of Paymtnts,'Xf payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />First, to the mortgage insurance premium to be paid by Lender to the Sezrctm or to the monthly charge by the Secretary
<br />instead of the monthly wo tgage insurance premium, unless Borrower paid On-entire mortgage insurance premium when this
<br />'Security Instrument was dyed;
<br />Second, to any taxes, special assessments, lnsej,.4d payvnenis or ground rents, and fire, flood and other hazard insurance
<br />premiums, as required;
<br />Third, to interest due under thte Note;
<br />Fourth, to amortikaatio:t of rise principal of the Note;
<br />Fifth, to late charges dune under the Note.
<br />4. Fine. Flood and other Hmmmg Insurance. Borrower shad) insure a2 3mprovemetnts pan the Property, whether now in
<br />existence or subsequently erected, eg t inst any hazards, casualties, and contingencies, indudims fire, for which Lender requires
<br />insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also
<br />insure all improvements on the Property, whether now in existence or subsecgue=ly erected, against loss by flood; to the �tcnt
<br />required by the Secretary. All insurance shall be carried with companies appraved by Lender. The insurance policies and any
<br />renewals shall 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 nasty make proof of loss if not made
<br />promptly by Borrower. Each insurance company concerned is hereby authorized and diresed to make payment for surely loss
<br />erectly tro fender, icnsaemi of to Borrower and to Lender jointly. All or arty part of the insurance pra=a;'s =yr tre applied
<br />by Lender, at its optibr,. &.her (a) to the reduction of the indebtedness under zhr Note and this Security Cttmri me nt, first to
<br />any deliyti etrt amo»mIy applied in 4'ne order in Paragraph 3, and then to pr+:: sent
<br />of principal, or ldrp to the restoration
<br />' or repair 7Ct he damaged property; �Aay apeui, =eon of the proceeds to the pdr sli'cs�ll 15 2 extend or postpone t,'re J�rte date
<br />of the mono aly payments which are uc` �. :M :0 Em Paragraph 2, o* rhaage the mrounrnc of swh payments. Any excess, ecssucance
<br />¢roceeds over an amount required to pay- all outstanding indebtedness gader tU.- Note and this Security Instrument -,&all be
<br />,said to the entity legally entitled thereto. '
<br />In the event of foreclosure of this Security Instrument me at her tearnsses of title to the Property chat extinguishes the
<br />indebtedra% all right, title and. kzemst of Borrower in and as unsurance pol evts fin force shall pass to the purchaser.
<br />S. Nervation stud Maintenance of the Property. 1Aase�mGrits. Scrrrd L'r shall. atrat rarmit waste or destroy, damage or
<br />substantially change t.W Property or allow the Property to deterEarste, reaso-,mbfle;a a and tear excepted. Lender may inspect
<br />the property if the'pr.ap rty is vacant or abandoned or the loan is in de£arl L Lender may take reasonable action to protect
<br />and preserve such i7al tt or abandoned property. if this SectuiErx Instruinem ii on i teatwhold, Borrower shall comply with
<br />the prq�sisiarJs of the lease. if Borrover acquires fee title to rlie Prcr erty. the ieasehold and fee title shall not be mere-ed. unless
<br />Lender ees to the merger in writing.
<br />6, Charges twE ammer and Protection o8 Lender's Rights itt rAe prnpi rtj ,. Borrower shall pay all Lover nmental or municipal
<br />charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to
<br />the entity %Y' hich is owed the payment. if failure to pay would adversely affect Lender's interest in the Property, upon Lender's
<br />request Surrower 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 any other covenants
<br />and agreements contained in this Security instrument, or there is a legal proceeding that may significantly affect Lender's rights
<br />in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce lairs or regulations), then Lender may
<br />do and pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, including payment
<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 />7. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br />condemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned
<br />and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this
<br />Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security
<br />Instrument. first to any delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment of principal.
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