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<br />90-406671
<br />L pamm of Ihbeyal, mmats," ad ktata CUM. Borrower shall pay when fix the principal of, and interest un, the debt
<br />evidenced by the Note and late charges due under the Note.
<br />_. MsmNb Fir• "of Tartan, Iasafaaca nerd 00W CTtttrgaa, Borrower shall inciu& in each monthly payment. together with
<br />the priscipal and interest as set forth in the Note and any We charges, an instaliaottu of aa+y (a) taxes and special assessments
<br />kried of to be kvied against the Property. (b) leasehold payments or grouted renu on the Property. and (c) premiums fur
<br />insutamce required by Paragraph 4.
<br />Each moat* installment for items (a). (b) and (c) sMU equal one- twelfth of the annum! amounts, as reasanab1Y estim a by
<br />Lender. plus an amount sufficient to maintain an add'+titvaal balance of not more than onc- sixth of the estimated amounts. The
<br />full annud amount for each item ftU be aaumulated 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 Leader prior to the due dates of such items, exeeeda by more thin one -sixth the estimated amount of
<br />pa required to pay such items when due, and if payments on the: Note are current, t*41en Lender shall either refund the
<br />ertcess over one -sixth of the estimated payments or credit the excess ova one -sixth of the estimated patyroentS to $111 quenl
<br />is by Borrower. at the option of Borrower. if the total of the payments made by Bwtowiu for item (a). (b). or (c) Is
<br />Insuir3ci,ent to pay the item when due, then Borrower shall pay to Leader any amount necessary to nuke up the deficiency on or
<br />before the date the item becomes due.
<br />As used in this Sercurity Instrument, "Secretary" meats the Secretary of Housing and Urban ire advance or his or her
<br />. Most Security Instruments insured by the secretary are insured under programs which require advance paytmmt- of fire
<br />=Mr. mortgage insuranoe Premium. If this Security Instrument is or was insured under a program which did not require advance
<br />pa yawtuf. the attire mortgage insurance premuum. then each monthly payment shall also include either: (i) an installment of the
<br />aranua# tmtrtpge insurance premium to be paid by Leader to the Secretary. or (it') a monthly cbarge instead of a mortgage
<br />insettasice premium it this security kwaa ant is held by the Secretary. Each moathly'"`ta!r"'` "t 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 rnstr,«nent is held by the
<br />Secretary, each monthly charge shall be in an amount equal to one - twelfth of one chaff paean of the outstanding principal
<br />balaom rfue on the Note.
<br />if Borrowa tenders to Lender the WD payment of all sums secured by this S cmzity bzsinamrarl•, Harrowers account shall be
<br />credited with the balance remaining for all installments for item (a), (b) amd ic1' Wt anx mortpgc insurancF premsitna
<br />installment that Lender has not become obligated to pay to the Secretary. and LeuAw P=707 il` refund any excess funds to
<br />Borrower. Immediately prior to a foreclosure sale of the Property or its acquisatftnn R3° Lender, Borrowet's Aun=t shall ire
<br />credited with any balance remaining for all instaltmnents for items (a). (b) and (0— .
<br />31. Ait<dkedom of rasionti- All payments under paragraphs t wA 2; shall be applied by Lmnsi r as follows:
<br />t . to the mortgage insuna ce pranium to be paid by Lemdrs• to the Secretary or to the monthly charge by the Secretaryc
<br />instead' of the monthly mortgage farmtoce premitim, unless Borrower paid the =d= mortMe insurance premium when rinds
<br />SatY Instrument wen signed;, eats, leasehold payments or ground rents. and fire, flood and other hazard insurance
<br />to any itrsrs,, s)�1: amr
<br />premin=% as regtfiztsil,
<br />TlfitRf7',. to interest der:` wni'W the: Ksve,
<br />FQTJ . 7 , to amonfuatfaxt• of tinepeinclpal of the Note;
<br />to late chargers due; :Ux uie Note.
<br />a_ s1ee, iLd and pryer Hazard lwraatce. Borrower shall insure all improvements on the Property. whether now in existcno
<br />or subsequently erected. against any hazards, casualties. and contingencies, fnciuding fu % for *hkh I.e.,dcr .:.-uuw
<br />Thla irtsuz UKe 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 foss by floods to the extent required bit
<br />the `iawavy. All insurance shall be curried with companies approved by Lender. Ile insurance policies and any renewals shad;
<br />be halal by Lender and shall include loss payable clauses in favor,af, and in a form acceptable to, Lender.
<br />in the event of loss. Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not [Wade 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 Lender jointly. All or any pan of the insurance proceeds may be applied by Lender, at its
<br />option, either (a) to the reducder, of the indebtedness under the Note and this Security Instrument. ftrst to any delinquant:
<br />amounts applied in the eider us: wagraph 3. and that to prepayment of principal, or (b) to ft restoration or repair of the
<br />damaged property. Any applicatirsa: of the proceeds to the principal shall not extend or postpone the due due of the monririy
<br />payments which are referred to is Paragraph 2, or change the amount of such payments. Any excess insurance proceeds over urn .
<br />amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity tegid=
<br />ly entitled thereto.
<br />a the till-
<br />Its iftte event of foreclosure of this security Instrument or N�riet transfer of title to the Property that extiaguislY
<br />dellterlmss. all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.:
<br />S. Preservation nerd Mafateanuee of the Property. lAsimboMm Borrower shall not commit waste or destroy, damage ur
<br />substantially change the Property or allow the Property to deteriorate. reasonable wear and tear excepted. Lender may 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 property. If this Security Instrument is on a leasehold, Borrower shall comply with the provi-
<br />sions of the lease. if Borrower arglttres fee title to the Property. the leasehold and fee tide sball not be merged unless Lendt?r
<br />agrtx to the merger in writing.
<br />i. Cyargea to II.hrro rer acrd Protection of Leader's Riots in the Property. Borrower shall pay all governmental or munWW -b'
<br />ch uga. fines and "impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly iMtht
<br />eaft which is owed the payment. If failure to pay would adversely affect Leader's interest in the Property. upon Lea&0%ne-
<br />qumL Borrower 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 and
<br />its contained in this Security instrument, or there is is itgd pncc=Ung that may significantly affect Lender's riglits.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. Comdeauradoa. 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 lnsua-
<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 pro%ided 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 due 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. ra s. Lender may collect fees and charges authorized by the Secretary.
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