|
•,i� F M1
<br />i
<br />i
<br />,
<br />go-106981
<br />1, Payment of Peiadpd, lettxnt �ddue Ckwp Note Borrower shall pay when due the prindpal of. and interest on. the debt
<br />ev►denced by the Nae tend late charges
<br />2. Mgm1W pWmu of Taxe• lowSeee anal OIMet CYatgsa. Borrower shall Include in each monthly payment. together with
<br />the principal and Interest as set forth in the Note and any late charges, an Installment of any (a) taxes and special assessments
<br />kvied or to be levied Against �ap the 4 Property, (b) hwuhold payments or ground rents on the Property. and (c) premiums for
<br />Insurance required
<br />Bach monthly Installment for items (a), (b) and (c) shall equal one• twelfth of the annual amounts, as reasonably estimated by
<br />Lender. l anual amoamount or Beach items to shall be Accumulated by Lender within mote than one-sixth
<br />ending of the estimated
<br />month before an amounts. d
<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 (o), 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 />ppaaym
<br />�ents by Borrower. at the option of Borrower. If the total of the payments made by Borrower for item (a), (b), or (c) is
<br />insttifkkml to pay sloe item when due. then Borrower shall pay to Lender any amount necessary to make up the deficiency on or
<br />before elm date the item becomes due.
<br />designee. Most Security Instruments insured by the Secretary are insured der Housing and i Urban
<br />require advance payment of the
<br />C1 mortgage insurance premium. if this Security Instrument is or wu insured under a program which did not require advance
<br />payment of the entire mortgage insurance premium. than 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 qul a monthly charge instead of a mortgage
<br />insarance prardwas If this Security Instrument is held by the Secretary. Each mwrf;tnyy 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 to the dote the full annual mortgage insurance premium is due to the Secretary, or if this Security Instrument is held by the
<br />Secretarv, each monthly charge shall be in an amount equal to one - twelfth of one -half percent of the outstanding principal
<br />balance due on the %ate.
<br />If Borrower tenders to Lender the full payment of all sums secured by this Security Instrument, Borrower's account shag be
<br />credited with the balance remaining for all installments for items (a). (b) and (c) and any mortgage insurance premium
<br />installment that Lender has not become obligated to pay to the Secretary. and Lender shall promptly refund any excess funds to
<br />credited ed with immediately prior to foreclos installments for Property ites a)r its acquisition i(siittion by Lew2a. Borrower's account shall be
<br />3. Application of Payments. All payments under paragraphs I and 2 shall to applied by lender as follows:
<br />EIM, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretary
<br />instead of the monthly norigagc irs'arance premium, unless Wrrower paid the entire mortgage Insurance prernium when this
<br />Security instrument was signed:
<br />CO , to any taxes. special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance
<br />premiums, as required;
<br />�to Interest due under the Note;
<br />, to amortization of the principal of the Note;
<br />F] H, to late charges due under the Note.
<br />4. Fire, Flood and OIYer Hturnrrl lssursace, Borrower shall insure all improvements on the Property, whether 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. AB 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 />Ir+ 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. instead of to Borrower and to Lender jointly. All or any pan 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) 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 outstaaJing Indebtedness under the Note and this Security Instrument shall be paid to the entity legal-
<br />ly entitled thereto.
<br />In the event of debtedness, all right foreclosure leand interest of Borrower in nd o insurance policies title to the
<br />shall pus Property the purchaser. the in-
<br />S. Pfesermdon and Maintenance of the Property. Leaseholds. Borrower shall not commit waste or destroy. damage .m
<br />substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect
<br />the property if the property is vacant or abandoned or the loan is in default. Lender may take reasonable action to protect and
<br />preserve such vacan t or abandoned property. If this Security instrument is on a leasehold. Borrower shall comply with the provi-
<br />sion of the lease. If Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless Lender
<br />agrees to the merger in writing.
<br />6. Charges to Borrower and Protection of Lender's Nights is the Property. Borrower s':a!' pay all governmental or municipal
<br />charges, fines and Impositions that are not included in Paragraph 2. Borrower shall pay It-mir .rbligations 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, ;pon Lender's re-
<br />quest Borrower shay! promptly furnish to Lender receipts evidencing these ra; ;ments.
<br />If Borrower falls to 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 pay wrhatever is eas essary to protect the value of there condemnation or to Property and Lenders laws
<br />theeProperty. Including payment of laxr
<br />hazard insurance and other items mentioned in Paragraph 2.
<br />j_,. _s o.- ..d ,,�. ....t hv,hic
<br />Any amounts Jc.sbursed by lender under this i�aragrape shall ocsuu,c a„ ad�Gaaad ..��• �• ..,,c:�u- =••- === --
<br />Security Instrument. These amounts shall tear 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. Coa leausation. 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 Securm 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, whtch are referred to in
<br />paragraph 2, or change the amount of such payments. Any excess proceeds over an amount required to pay all our%t2ndtag in-
<br />debtedness under the Note and this Security Instrument shaii be paid to the entity legally entitled thereto.
<br />t. Fem lender may collect tees ant charges authorized by the Secretary
<br />Part 2 of t
<br />KPH"
<br />EM" L:'—
<br />iti?�ia —
<br />i
<br />.,4
<br />h
<br />,:?
<br />
|