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90- 1OG884
<br />L'y, ad IF. Nessus Mai Los amp. Borrower shall pay when dw sloe principal of, and interest on, the debt
<br />evlda" d by the Now tad We ch+r[a due ceder the Note.
<br />3. MutWf lg of Tsnb l maw and M1w CWp' mower shall include in each monthly payment, together with
<br />and interest a ad forth In the Note and any lug charges« an reap of the Property, and (e praNuament$
<br />kvvied be levied against the Property. (b) leawbold Payments
<br />imeram roquired by Paragraph 4.
<br />Each aaathly installment for items (a). (b) and (c1 shall egwl ote•twelftb of the annual amounts. u reawnably estLsated by
<br />Letttler. p1ua as amottat sufficient to malntain an addidoad balance of not more than one•sbtth of the estimated amounts. The
<br />(till aaaual amount for each (tan shall be accumulated by Lender within a period ending one month before an item would
<br />becoata 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 (o). together with the future monthly payments
<br />for such items payable to Lender prior to the due dates of such items, owe d$ by more than one -sixth the estimated amount of
<br />payments requited to pay such Naas when due, and if payments on the Note are current. then Lender shall either refund the
<br />excess over one -sixtb 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 />insufficient to pay the item wlm due. that Borrower shoM pay to Leader any a—g-ml neceMy to make up tldte deficiency on or
<br />before the date tit item becomes due.
<br />As used In this Security Isstrutaeat. "Secretary" means the Secretary of Housing and Urban Development a Isis of %be
<br />rile On. Most Security Instruments insured by the Secretary are insured under programs which require advance payment
<br />entire moMm insurance premium. If this Security Inettrum ew is or was insured ceder a program which did not require advance
<br />payment of the eating mortgage hourasce premium. then each monthly payment shall also include either: (6) an installment of the
<br />�srual mortgage iruurance premium to be paid by Lender to the Secretary. or (I) a monthly charge imtead of a mortgage
<br />iumuaooe 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 fun wnaual mortgage insurance premium with Lender one month
<br />prior to the due the full annual mortgage insurance premium b due to the Secretary. or if this Security Instrument Is held by the
<br />Secretary, each monthly charge shaid be in an amount equal to one - twelfth of one -half percent of the outstanding principal
<br />balance due on the Note.
<br />If Borrower tenders to Leada the full payment of all sons secured by this Security lrrainmyent, Borrower's account shall be
<br />credited with the balance remaining for all installments for items (a), (b) and (c) and any mortgage insurance premium
<br />Borrower.
<br />Installment prior to cforeclosure tsale oft a Property or ts acquisition sby Under. lBorrower stysccount funds
<br />shall be
<br />ctediaed with any balance remaining for all installments for items (a), (b) and (c).
<br />3, A oQ Psyntah. All payments under paragraphs 1 and 2 shag be applied by Lender a follows:
<br />F!R_jc� tp thr mmiSage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretary
<br />instead of the monthly mortgage Insurance premium. unless Borrrower paid the entire mmWa se insurance premium when this
<br />Security Instrument was signets;
<br />.COiVQ. to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other harard insurwace
<br />premiums. a requited;
<br />:. to Interest due under the Note;
<br />JFQURTH, to awDrd ation of the prindpW of the Note;
<br />FIFTH, to late charges due under the Note.
<br />4. Fire, Flood will Otter BMW Irsaraace- Borrower shall Insure all improvements on the Property. whether now in existence
<br />or subsequently erected. against any hazards. casualties, and contingencies. including fin, for which Lender requires Insurance.
<br />TWs insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shag also Insure all
<br />improvements on the Property, whether now inexistence 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 Leader 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 awthorized and directed to make payment for such loss 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 thb Security instrument, first to any delinquent
<br />ataounts applied in the order in Paragraph 3, and then to prepayment o'f 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 />amount required to pay all utstanding indebtedness under the the No Band this Sccw ity Instrument shall e paid to the entity 1 Bal-
<br />ly entitled thereto.
<br />to the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the in-
<br />debtedness. all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />S. Preservation lead Malrtessace of the Property, Leasebolds. Borrower shag not commit waste or destroy. damage or
<br />substantially change the Property or allow the Property to deteriorate. reasonable wear and teat excepted. Lender may inspect
<br />the property if the property 1.• 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 leasehold. Borrower shall comply with the provi.
<br />sions of the lease. If Borrower acquires fee title to the Property, the leasehold and fee title shag not be merged unless Lender
<br />agrees to the merger In writing.
<br />6. Charges to Borrower and Protection of Leader's Rights in the Property. Borrower shall pay all governmental or municipal
<br />charges, find 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 adversely affect Lender's interest in the Property. upon Lender's re-
<br />quest Borrower shall promptly furnish to Lender receipts evidencing these payments.
<br />If Borrower fails io make these payments or the payments required by Paragraph 2, or fails to perform any other covenants and
<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 : egulations), then Lender may do and
<br />pay whatever is necessary to protect the value of the Property and Lender's rights in OW Property, including payment of taxes,
<br />bnanrd in.nrafter and other items mentioned in Paragraph 2.
<br />Any amounts disbwxd by lender under this Paragraph shall beccme ax additional debt of Borrower and be secured by this
<br />Security Instnamenl. 'These amounts shall bear interest from *be date of (disbursement, at the Note rate, and at the option of
<br />tenter, shall he ja;rrtd-,au3y due and payable.
<br />7. Cesdeamadom. The 1773cteds of any award or claim for damages, direct or consequential, in connection with any condem-
<br />nation or other tatting of any pan or the Property, or for conveyance in place of condemnation, are hereby assigned and shall be
<br />paid to Leader to the extent of the full amount of the indebtedness that remains unpaid under the Note and this Security Instru-
<br />ment. lender shag apply such proceeds to the reduction of the indebtedness under the Note and this Security Instrument, first to
<br />any delinquent mounts 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 shag be paid to the entity legally entitled thereto.
<br />g. Fen. Lender may collect fees and charges authorized by the Secretary.
<br />Post 2 of 4
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