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<br />L rg of rrlwttMtal. low" sad clan Char. Borrower dell pay when due the principal of. and interest on, the debt
<br />aVenced by the Nate ad We char" due under the Note.
<br />2. MaaWy h1 I d Tortes. laaarurtee ad Odw � Borrower shall include in each monthly payment. together with ausessmenu
<br />he prindpal and interest as set forth In the Note I+ue� installment of any (a) taxes as (spocWremAfrma for
<br />kvled or to be levied aping iha Property. () or ground rents an the Property, And
<br />insurance required by Paragraph 4.
<br />Each monthly iauallmau for hams (ah (b) aid (c) &W eq� one- twelih of the annual amounts, at reasonably estimated by The
<br />Leader. plus as amount sufficient to maintain cu additional balance of wiitt� � dins one month re as item would
<br />full annual smoum for each item shall be accumulated by
<br />become delinquent. Leader ball hold the amounts collect in trust to pay items (a). (b) and (e) before they become delinquent.
<br />If at any time he told of he payments held by (..ender 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 tech items when due, and if payments on the Note are current, hen Lender shall either refund the
<br />excess over one -sixth of the estimated payments or credit the mess over one -sixth of the estimated payments to subsequent is
<br />r or item Mimesis by Borrower, at the option of Borrower. If the total o f the y oat by by Bono Q up tbe(de (ficbiscl' onerr
<br />insufficient to pay the item when due. ibem Borrower $hall pay
<br />before the date dw ltem becomes due.
<br />As used in this Sorority Insttunwat. ••Secretary'• mans the secretary of Horsain and Urban pevefopmet or his or her
<br />Most Security Instruments insured by the Secretary are inured under programs which require advance payment of the
<br />entire otorigage inwrance premium. if this Security instrument is or was insured under a program which did not require advance
<br />payment of the entire mortgage irtsuntsce premium. then each monthly payment shall also include either: (i) an iastallarent of the
<br />annual mortgage insurance premium to be pad by Lender to the Secretary. or (ii) a monthly charge instead of a mortgage
<br />insurance premium if his security Instrument is held by the Secretary. Each monthly installment of the awa4gage insurance
<br />premium shall be is as amount sufficient to accumulate the full annual mortgage insurance premium with I enL,er one month
<br />insurance prior to the date the full annual at�hall in astwuat equwlito due to the one- twelfth of one�halftperoent `the ouasmading principal
<br />, each monthly charge
<br />balance due on the Note.
<br />If Borrower tenders to Lender the full payment of all toms secured by his Security Instrument. Borrower's account ball re m be
<br />credited with he balance nAft for all iosolhmems for items (a), (b) and (c) and any mortgage insurance premium to
<br />installment mm��atromeondft h i s promptly fu
<br />Borrower. prioro aaforclosufesale o e to the property or ts acquisition by Leader, mmuntta be
<br />credited with any badnrce remaining for an installments for items (a). (b) and (c).
<br />3. Appillca a of fhfmmeab. All payments under paragraphs I and 2 shall be applied by Lender as follows:
<br />EjW. to the mortgage insurance premium to be paid by Lender to he Secretary or to the monthly charge by the Secretary
<br />Instead of the monthly mortgage insurance premium. unless Borrower paW $Fie entire mortgage imsurs --m : rmJurn when this
<br />Security Instrument was signed: emu or ground rents, and firs. flood and other hazard insurance
<br />,�F,CONJQ. to any taxes. special assessments. leasehold payments
<br />premiums. as required:
<br />f`il . to interest due under *;; Note;
<br />jFOURTH, to amortization of rme principal of the Note;
<br />FIRM, to Iate charges due under the Note.
<br />4. !Rite, Flood and trtdaer Had lawrruc -. Borrower shall insure all improvements on the Property, whether now in existence
<br />or subsequently erected. against any hazards, casualties, and confkrgencies, including fire, f ®r which Lender requires insurance.
<br />This insurance shad! be maintained in the amounts and for the periods that Lender requires. Borrower shall also insure all
<br />improvements on the Property, whtiter now in existence or subsequently erected, against loss 1h3. ?foods to the extent required by
<br />the Secretary. AU insurance shall be carried with companies approved by Lender. The insurance policies and any renewals shall
<br />be held by Leader and shall include loss payabk clauses in favor of, and in a form acceptable to, Lender.
<br />In the event of loss, Borrower $111111 give Lender immediate notice by mail. Leader may make proof of loss ff not made prompt-
<br />ly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such lots directly to
<br />Lender, instead of to Borrower and to Lender jointly. Ali 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 prepayment of principal, or (b) la she 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 />aamoouunt required to Pay all ooat standingdebtedness under hetNote pand this Secc►m�iyainstrument shall be paid to the entity legal-
<br />ly entitled thereto. transfer
<br />debt the event light foreclosure le and n°erest off uBorrower in and or insurance policies In fore sftai� i s o theePurc�hes the in-
<br />S, pfess, vatlon sad Maintenance of ose Prepaty. Lesseholds. Borrower shall not commit waste or destroy, damage or
<br />substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect
<br />the property if he 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 and fee . Bo snail not shall comply merged unless Lender
<br />sions of the lease. If Borrower a..Aumres fee title to the Property.
<br />agrees to the merger in wilting.
<br />f. Charges to 13 -amwer and protection of Lender's Wghts in lk property. Borrower shall pay all governmental or municipal
<br />charges, fines anti impositions that are not included in Paragraph 2. Borrower st-A pay these obligatios on tu�nuLecte Icy tosthe
<br />eatr�y which is owed the parmtns. if failure to pay would adversely affect Lender's interest in the Property.
<br />queg Borrower shall promrt y f::rnrsh to Lender receipts evidencing these payments.
<br />If Borrower fails to make these ryments or the payments required by Paragraph 2, or fails to perform any oahee covenants and
<br />agreements contadned in his Security Instrument, or there is a legal proceeding that may sigdricandy aVfto Lender's rights in
<br />the Property tsuc h as a proceeding in bankruptcy, for condemnation or to enfa*r.e laws or regulations), then tender may do and
<br />pay whatever is necessary, to protect the value of the Property and Lender's nghts its the Property, including payment of taxes.
<br />m..r.re tneuranee And other items mentioned in Paragraph 2.
<br />Any amounts dishuraed by Ile ^der under this Paragraph shall become an addirio" debt of Borrower and be securedoy mn's
<br />Security Instrumew. These amounts shall tear interest from the date of dislatuvement, at the Note rate, and at the option of
<br />Lender, sball be aaaxtediately due and payable.
<br />7. codesaswioa. The proceeds of any award or claim for damasps. diren 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 :hall apply such proceeds to the reduction of the indebtedness under the Note and this Security Instrument, tint 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 />g. fees. Lender may collect fees and charges authorized by the Secretary.
<br />Port 2 Of 4
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