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<br />so-106681
<br />1. hytaoat of Ftiaelpal, tatmst and Late Cbazgo. Borrower shall pay when due the principal (if. and intercra on, the debt
<br />evidenced by the Note and late charges due under the NOW
<br />2. Maathb hy�b of Taaaa, itawraace trod Other Cb&W. Borrower shall Include in each monthly payment, together with
<br />the kvkdioritoo be Wed against the Property, (b) leaseholdlpaym payments of ground rents installment on the Propertyaand special
<br />c) Pre+�nius s for
<br />luuranee required by Paragraph 6.
<br />Each monthly installment for items (a), (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 />(lull 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 W. (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, 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 -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 />insuflident to pay the item when due, then Borrower shall pay to Lender 4uiy amount n=%ary to make up the deficiency on or
<br />before the date the item becomes due.
<br />As used in this Security Instntmeat, "Secretary" means the Secretary of I'lousing 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 tite
<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 insuwce premium, then each rratrlshly payment shall also include either: (i) an installment, of trite
<br />annual mortgage insurance premium to be paid by Lender to the Secretary. or (it) a monthly charge instead of a tnorgp
<br />insurance premium if this Security Instrument is held by the Secretary. Each monthly installment of the mortgage fmsrrrMM.-
<br />premium shall be is an, u,1»ount sufficient to accumulate the full annual mortgage insurance premium with Leader arse moult,
<br />prior to the date the cttj Jr.lrtnual mortgage insurance premium is due to the Secretary. or if this Security Instrument is he6i fly tft
<br />Secretary, each monthty wtarge aCrsJJ'. be in an amount equal to one - twelfth of one -half percent of the outstanding ptiialvii l:
<br />balanot due on the Note.
<br />If Borrower tenders to Lender tine trA. payment of all sums secured by this Security Instrument, Borrower's account shalt be
<br />credited with the balance remainitg for all instalments 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 Ponds 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 remdnisrg for all installments for items (a), (b) and (c).
<br />3, Ap(pi catkin of pa>•ents. AH pas -rents under� paragraphs I and 2 shall be applied by Lender as follows:
<br />F7RS7.,, w the mor.gage insurance premium to 1tv braid by Lender to the Secretary or to the monthly charge by the Secretary
<br />instead of the montb4. mortgage insurance pre=nr= unless Borrower paid the entire mortgage insurance premium when this
<br />Security Instrument was signed;
<br />ES CON_ D, to any min, special assessments, kw& -.Id payments or ground rents, and fate, flood and other hazard insurance
<br />premium,% as required;
<br />T�£rigED, to interest due under Or Nate;
<br />to amortimttion of tine Trmdpal QC the Note;
<br />FWM, to late charges due under :lee New,
<br />4. Fire, FkW sad Other Hazard insurance. Boger shall insure all improvements on the Property, whether now in existence
<br />of subsequently C1 -A. aping �=•r a�,e..t� casualties. and cnntinaencies, including fire. for which Lender requires insurance.
<br />This Insurance shall be maintained is the amounts and for the periods that Lender requires. Borrower shall also iruuue all
<br />improvements on the property, whetxtcr 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 4=ses in favor of, and in a forth 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 made prompt-
<br />ly by Borrower. Each insurance company concerned is *hereby auth- ozaxed and directed to make payment for such loss directly to
<br />Lender, instead of to Borrower an49 tc Lender joinLy. All or any pwt 6f the insuraetr a procee& may be applied by Lender. at its.
<br />option. either (a) to the reduction v tie indebtedness under the Nme and this'Security LC<%rament, first to any delingkaeam:
<br />amounts applied in the order in Fwagraph 3. and then to prepayment of principal. or (Q) ca eixe restoration or repair of Ole
<br />;=Q W04 proparty. Any, app;icat:o : zF the proceeeds to the principal shall not emend or postpone the due date of the mondtQr,
<br />,M7mc•nis which are rer=ced to in ftmgrapb 2. or dhange the amount of such papmeals. Any excess insurance proceeds over an
<br />am v= required to pa7t a r ", zrandms, indebtedness under the Note and this Security Instrument shall be paid tea tG.e entity kc8at-
<br />;ty CV:a:kdt thereto.
<br />IQ else event of forestx= of :)his. 'Szsurity Instrument or other transfer of title to the Property that extinguishes ttL= en-
<br />debtedmess, all right, tics end ii=a css..of Borrower in and to iasutaace policies in force shall pass to the putcbaser-
<br />S. proerntior oust- Maieateaatatee•tmf she iPeratyetiy, Leaseholds. Borrower shall not commit waste or qtr -y,, damage or
<br />substantially change the Fropertpe oe allOW the P- raprerty to deteriorate, reasonable wear and ten excepted. Leader may inspect
<br />the property if the property is yaMI X abaai&M—t, or the loan is in default. Lender may take reasonable action to protect and
<br />preserve such vacant or abandodZ1 v map : i:'ti Was Security Instrument is on a Imehold. Borrower shall comply with the provi-
<br />sions of the lease. If Rorrower a- -p--es fee dr!?_ w fhe Property. the leasehold and fee title sbdt not be merged unless Lender
<br />agrees to the merger in writing.
<br />6. Chars to Barrumer and Protection of LemL-''s Rigouts is the Property. Borrower shall pay all governmental or municipal
<br />charges, fines and impositions that are not included in Paragraph 2. Borrower shall' pay these obligations on time directly to the
<br />entity which is owed the payment. if failure to pay would advecsdy, affect Lender's interest in the Property, upon Lender's re•
<br />quest Borrower shall promptly fumish 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 covenantssawi
<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 tender 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 Insttu-
<br />mnt. 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. Fees. Lender may collect fees and charges authorized by the Secretary.
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