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<br />90--° 106766
<br />Each monthly installment for items (a), N. and (c) shall equal onc - twelfth of the annual amounts, as reasonably estimated
<br />balance of not more than r'ne -sixth of the estimated amounts.
<br />by Lender. plus an amount sufficient to maintain an additional
<br />The full annual amount for each item shall be accumulated by Lender within a period ending one month before an item would
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<br />become delinquent. Lender shall hold the amounts collected in trust to pay items (a). (b), .Ind (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 />dates items, exceeds by more than one -sixth the estimated amount
<br />for such items payable to lender prior to the due of such
<br />of required to pay such items when due, and if payments on the Note are current, then Lender shall either r.:fljnd
<br />payments
<br />the excess over one -sixth of the estimated payments or credit the excess over one -sixth of the estimated payments to sL.,ksa,;uent
<br />by Borrower, the option of Borrower. if the total of the payments made by Borrower for izztr !ta), Afi, % for (c)
<br />payments at
<br />is insufficit:rri. to pay the item when dne, then Borrower shall pay; to Lender any ,amount it:cessary to Mkc 'Pi* 3he defi,:aetzcy
<br />item becomes due.
<br />on or befiare ciji.te the
<br />As used in this Security Instrument, "Secretary" means the Stcz4ary of loosing and Urban Development or his Qsr i:..er
<br />insured by the Secretary are insured under programs which require advance payment of
<br />`
<br />designee. Most Security instruments
<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 Cach monthly payment shall also include either: (I) an installment
<br />be by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage
<br />of the annual mortgage insurance premium to paid
<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 the Secretary. a chfmlo monthly charge shall be in an amount equal to onetwelfth of one -half percent of hetoutstanding principal
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<br />i
<br />balance due on the Note.
<br />If Borrower tenders to Lender he full payment of all sums secured by his Security instrument, Borrower's account shall
<br />be credited with the balance remaining for all installments for items (a). (b), and (c) and any mortgage insurance premium
<br />Secretary. and Lender shall promptly refund any excess funds
<br />i
<br />installment that Lender has not become obligated to pay to the
<br />to Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender. Borrower's account shall
<br />be credited with any balance remaining for all installments for items (a). (b), and (c).
<br />3. Application of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />to be by Lender to the Secretary or to the monthly charge by the Secretary
<br />First, to the mortgage insurance premium paid
<br />Instead of the monthly mortgage insurance premium, unless Borrower paid the entire mortgage insurance premium when this
<br />Security Instrument was signed;
<br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insuraru.c
<br />premiums-, as required;
<br />Third- te'interest due under the Note;
<br />Fourth, to amortization of the principal of the Note;
<br />FiftII:., try late charges due under the Note.
<br />4. Fuse. Flood and Other Hazard Insurance. Borrower sL-Pza aasure all improvements on the Property, whether aow in
<br />and continge fire. for which Lender requires
<br />ncies. including t
<br />existence or subsequently erected. against any hazards. casuat es,
<br />insurance. This insurance shall be maintained in the artiouttts and for the periods that lender requires. Borrower shall , sa
<br />Ensure att. knprovements on the Property, whether now in existerce or subsequently erected, against loss by Roods to the extent
<br />be with companies approved by Lender. The insurance policies and any
<br />requirew i;.y,- the Secretary. All insurance shall carried
<br />reneiKd_,, l uili be held by Lender and shall include loss pay:ar le clauses in favor of. and in a form acceptable ter. Lender.
<br />to of foss.,, Borrower shall give Lender immediate txedice by mail. Lender may make proof of foss if ux7t made
<br />'a,:h insurance concerned is.t :er.,t� k authariaed and directed to make payment far. udl Pv3s
<br />premptry lit Berrawer. company
<br />dEm--tly w Q ender, mom a& of to Borrower and to Lender join d -w. Vl or' zaT part of the insurance proceeds may •be• 4�ptito
<br />by Letider, at its option; either (a) to the reductive of the iad.f ^u. fc:ss u''_ler the Note and this Security Instrument. first to
<br />any delinquent amounts applied in the order in Paragraph 3„ and then to prepayment of principal, or (b) to the Testoration
<br />Any application. of clue proceeds to the principal shall not extend or postpone the due date
<br />or repair of the damaged property.
<br />of the monthly payments which are referred to in Paragraph 2, or change the amount of such payments. Any excess insurance
<br />indebtedness under the Note and this Security Instrument shall be
<br />proceeds over an amount required to pay all outstanding
<br />paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instrument or oilier transfer of title to the Property that extinguishes the
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<br />indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />S. Preservation and Maintenance of the Property. Leaseholds. Borrower shall not commit waste or destroy, damage or
<br />deteriorate, reasonable wear and tear excepted. Lender may inspect
<br />substantially change the Property or allow the Property to
<br />the property if the property is vacant or abandoned or the foam is in default. Lender may take reasonable action to protect
<br />and preserve such vacant or abandoned property. If this Security Instrument is on a leasehold. Borrower shall comply with
<br />fee title to the Property, the leasehold and fee title shall not be merged unless
<br />the provisions of the lease. If Borrower acquires
<br />Lender agrees to the merger in writing.
<br />6. Charges to Borrower and Protection of Lender's Rights in the Properly. 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
<br />the entity which is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's
<br />request Borrower shall promptly furnish to Lender receipts e%idencing 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 />in Security instrument. or there is a legal proceeding that may significantly affect Lender's rights
<br />and agreements contained this
<br />in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws 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 .fes damages, direct or consequential, in connection wish 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 Dote and this
<br />Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security
<br />in the order provided in Paragraph 3, and then to prepayment of principal_
<br />Instrument, first to any delinquent amounts applied
<br />Pave 2 u/ 4
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