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200009449
<br />Borrower, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall notify Lenders of
<br />any extenuating circumstances. Borrow shall not commit waste or destroy, damage or substantially change the Property or
<br />allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Property if the Property is vacant
<br />or abandoned or the loan is in default. Lender may take reasonable action to protect and preserve such vacant or abandoned
<br />Property. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate
<br />information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan
<br />evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a
<br />principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If
<br />Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless Lender agrees to the merger in
<br />writing.
<br />6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br />condemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned and
<br />shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this
<br />Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security
<br />Instrument, first to any delinquent amounts applied in the order provided in paragraph 3, and then to prepayment of principal.
<br />Any application of the proceeds to the principal shall not extend or postpone the due date of the monthly payments, which are
<br />referred to in paragraph 2, or change the amount of such payments. Any excess proceeds over an amount required to pay all
<br />outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled thereto.
<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all governmental or
<br />municipal charges, fines and impositions that are not included in paragraph 2. Borrower shall pay these obligations on time
<br />directly to the entity which is owed the payment, If failure to pay would adversely affect Lender's interest in the Property,
<br />upon Lender's request 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
<br />and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's
<br />rights in the Property (such as a proceeding in bankruptcy, for condemnation to enforce laws or regulations), then Lender may
<br />do and pay whatever is necessary to protect the value of the property and Lenders rights in the Property, including payment of
<br />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 by
<br />this 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 />8. Fees. Lender may collect fees and charges authorized by the Secretary.
<br />9. Grounds for Acceleration of Debt.
<br />(a) Default. Lender may, except as limited by regulations issued by the Secretary in the case of payment defaults,
<br />require immediate payment in full of all sums secured by this Security Instrument if-
<br />(i) Borrower defaults by failing to pay in full any monthly payment required by this Security Instrument prior to
<br />or on the due date of the next monthly payment, or
<br />(ii) Borrower defaults by failing, for a period of thirty days, to perform any other obligations contained in this
<br />Security Instrument.
<br />(b) Sale Without Credit Approval. Lender shall, if permitted by applicable law and with the prior approval of the
<br />Secretary, require immediate payment in full of all sums secured by this Security Instrument if-
<br />(i) All or part of the Property, or a beneficial interest in a trust owning all or part of the Property, is sold or
<br />otherwise transferred (other than by devise or descent) by the Borrower, and
<br />(ii) The Property is not occupied by the purchaser or grantee as his or her principal residence, or the purchaser or
<br />grantee does so occupy the Property but his or her credit has not been approved in accordance with the
<br />requirements of the Secretary.
<br />(c) No Waiver. If circumstances occur that would permit Lender to require immediate payment in full, but Lender
<br />does not require such payments, Lender does not waive its rights with respect to subsequent events.
<br />(d) Regulations of HUD Secretary. In many circumstances regulations issued by the Secretary will limit Lender's
<br />rights in the case of payment defaults to require immediate payment in full and foreclose if not paid. This Security
<br />Instrument does not authorize acceleration or foreclosure if not permitted by regulations of the Secretary.
<br />(e) Mortgage Not Insured. Borrower agrees that should this Security Instrument and the Note secured thereby not be
<br />eligible for insurance under the National Housing Act within 60 days from the date hereof, Lender may, at its option
<br />and notwithstanding anything in paragraph 9, require immediate payment in full of all sums secured by this Security
<br />Instrument. A written statement of any authorized agent of the Secretary dated subsequent to 60 days from the date
<br />hereof, declining to insure this Security Instrument and the Note secured thereby, shall be deemed conclusive proof of
<br />such ineligibility. Notwithstanding the foregoing, this option may not be exercised by Lender when the unavailability
<br />of insurance is solely due to Lender's failure to remit a mortgage insurance premium to the Secretary.
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