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<br />go— 106971
<br />1. hywat of lriatirJ, Iatereat and Late Charge. Borrower shall pay when due the principal of, and interest on, the debt
<br />evidenced by the Note and late charges due under the Note.
<br />2. Most* Pttyt to of Taxes, lasersace and Ober Char=ts. Borrower shall include in each manthiy payment, together with
<br />the principal and interest as set forth in the Note and any 1+4te charges, an installment of any (a) taxes and special assessments
<br />levied or to be levied against the Property, (b) Imehold payments or ground rents on the Property, and (c) premiums for
<br />insurance required by Paragraph 4.
<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 />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 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 trade by Borrower for item (a), (b), or (c) is
<br />insufficient to pay the item when due, then Borrower shall pay to Lender any amount necessary to make up the deficiency on tit
<br />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 />des }$pee. Most Security Instruments insured by the Secretary are insured under programs which require advance payment of the
<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 inanvmnce premium. then each monthly payment shall also include either: (i) an installment of the
<br />annual mortgage insurance premium to be paid by Lender to the Secretary, or (if) 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 insumnim
<br />premium shall be in an amount sufficient to accumulate the full annual mortgage insurance prensiurt with Lender one month
<br />prior to the date the C4 annual mortgage insurance premium is due to the Secretary, or if this SCRcemj y Rnstrumeat is held by the
<br />Secretary. each mon," charge shall be in an amount equal to one - twelfth of one -half per= - tO the outs:aading principal
<br />balance flue on the Note.
<br />If )yw=wer tenders to Lender the full payment of all sums scrr1wit. �y this Security Instrument. Borrower's account shall be
<br />erc&—el with the balance remaining for all installments for d,o= ta). (b) and (c) and any mortgage insurance premium
<br />instaMment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund amy 1 —mcm funds to
<br />Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's aoz,unt shall be
<br />credited with any balance remaining for all installments for items (a), (b) and (c).
<br />d. Application of Paysients. Ali re%rsments under paragraphs 1 and 2 shall be applied by Leurler ss Wows:
<br />FIRST, to the mortgage insures —,. r, mnium to be paid by Lender to the Secretary or to the by the Secretary
<br />instead of the monthi)r mortgage insurance premium, unless Borrower paid the raise mottQagr ,`xT% w:'ze p=arium when this
<br />Sa-urity Instrument aaas signed;
<br />SE CO , to any mires, special assessments, tesvek-old payments or ground rents, arf fire.. Grod M2 ¢ghee twwd insurance
<br />premiums, as required;
<br />TkI. to Interest due under the Note;
<br />FOURTH, to amortization of the principal of the Note;
<br />FIErt YA, to late charges due under the Note.
<br />4. tic, JrKK i auv v, . __ in=:%n :. Borrower sh=ell insure all improvements on the Property. whethher now in existence
<br />or subsequently erected, against any hazards, casualties, and contingencies, including fire. for which.Lender requires insurance.
<br />This insurance 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 loss by floods to the extent required by
<br />the Secretary. Ali 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 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 may make proof of loss if not made prompt-
<br />ly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss directly to
<br />Lender, }[stead of to Borrower and to Lender jointly. An or any part of the insurance proceeds may be applied by Lender, at its
<br />option, either (a) to the reduction of the indebtedness under the Note and this Security Instrument. first to any delinquent
<br />amounts applied in the order in Paragraph 3. and then to prepal went of principal or (b) to the restoration or repair of the
<br />damaged property. Any application of the proceeds to the principal shall not extend or postpone the due date of the monthly
<br />payments which are referred to in Paragraph 2. or change the amount of such payments. Any excess insurance proceeds over an
<br />amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legal-
<br />ly entitled thereto.
<br />Th The event of foreclosure of tit's Security instrument or dtlter transfer of title to the Property that extinguishes the in-
<br />debusftess. all right, title and interest of Borrower in and to invrance policies in force shall pass to the purchaser.
<br />s. Preservation and Maintenance of the Prepardy, Leaseholds. Borrower.shan not commit waste or destroy, damage or
<br />substantially chafe rjI:e Property or allow the Property to deteriorate, redr*nable wear and tear excepted. Leader may inspect
<br />the property if the pwpeny is vacant or abandoned or the loan is in defatrlt. ]Len6eT may take reasonable ac'ion to protect and
<br />praseeae such, vacatnt or abandoned property. If this Security lnstr=?.(.—.e is-an a ltwa2told. Borrower shall comply with the provi-
<br />sion`s cE at lease. T borrower acquires fee title to the Property.. the geasTW4 and fee title shall not be merged unless Lender
<br />a %* the metes ea writing.
<br />6. Charges to 1ffiwemee and Pmrmdon of LearBmtr's Rights in aloe pmpe t*. B.%, 7 s`er sluff- liar all governmental or municipal
<br />charges. fines and imp rsitions that are not incEuda3 in Paragraph 2. Borrower sigh pay these aWjigations on time directly to the
<br />entity which is owei. tfta Saytaert_ IC failure to r;.zy: would adversely affect L w.det" interest in the Property, mpon Lender's re.
<br />quest borrower shall pwmptiy Fw:v- _h to Lender receipts evidencing these yaymwmtrs.
<br />If Rorrower faits ra make these payments or the payments requirai:' by Paragraph 2, or _`ails W. rr%rform any other covenarrm
<br />agreements cormmned in this Security instrument, or there is a Gegai proceedirt4 drat may siLrPi6> aratly affect Lender's rigltls ur.
<br />the Property fsu:Ji as, a proceeding in bankruptcy, for condemnation or to enfame [sews or regulations), then Leader may do and
<br />pay whatever is. nc=ssary to protect the value of the Property and Lender's rights. ill the Property, including M, ment of taxes,
<br />hazard- insurance and other items mentioned in Paragraph 2.
<br />Any-amounts disbursed by lender under this Paragraph shall,15wome 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 Instru-
<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 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 />6. Fees. Lender may collect fees and charges authorized by the Secretary.
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