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<br />90 -10684 7
<br />1. PgrH of Ptladpl, Intorts" sad LM CMrp. Borrower than pay when due the principal of, and interest on, the debt
<br />evi ifmctd by the Note and late charges due trader the Note.
<br />n 2. Moalhl y PwnsaM of Tatra, Inswaaot OW Other CIM"". Borrower shall Include in each monthly payment. together with
<br />1;
<br />the principal and Interest as set forth in the Note and any late charges, an installment of any (a) taxes and special p emiums (r —
<br />ti levied or to be kvled against the Property, (b) leuthold payments w ground rents on the Property, and (c) premiums for
<br />Insurance required by Paragraph 4.
<br />- -.
<br />... ,. • • Each monthly Installment for items (a), (b) and (c) shall equal one - twelfth of the annual amounts, an reasonably no d mots estimated Y
<br />Lender, plus as amount sufficient to maintain an additional balance of not more than one sixth of the estimated amounts. The _.
<br />fun 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 -sixth — of
<br />for such items payable to Lender prior to the due data of such items, exceeds by more hen one Lend er shill either refund the ..w:,nMr ,wrtan
<br />°.� payments required to pay such items when due, and if payments on the Note are current, then Lend y• ^r .
<br />o the estimated payments or credit the excess over one -sixth of the estimated payments to subsequent •R
<br />excess ova one -sixth f WYm ; =
<br />payments by Borrower, at the option of Borrower. If the total of the payments made by Borrower up he des (bficleacy an or
<br />`'� ' —• Insufficient to pay the item when due, then Borrower shall ay to Lender any amount necessary
<br />before the date he item becomes due. V "'' or her
<br />As used in this Security Instrument. "Secretary" means the Secretary of uousiag and Urban Development or hkt of the t
<br />designee. Most Security Instruments insured by the Secretary are insured under programs which regtsirc advance payment
<br />e aline 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 insurance premium, hrn each monthly payment shall also include either: (i) an insttdloaent of the
<br />annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage
<br />insurance premium m
<br />if this Security Instruent is held by the Secretary• Each monthly 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 elate the NB annual mortgage
<br />insurance premium is due to the Secretary, or if this Security Instrument is held by the f
<br />Secretary, each monthly charge shall be is an amount equal to one- twelfth of one -half percent of the outstanding principal::
<br />balance due on the Note.
<br />Borrower's account shall be af•: ,
<br />If Borrower tenders to Lender the full payment of 1U sums secured by this Security Instrument,
<br />e, credited with the balance remaining for all installments for items (a), (b) and (c) and any mortgage insurance premium
<br />installment that Leader has not become obligated to pay to the Secretary. and Lender shall promptly refund any excess funds e
<br />Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shag be VIM' ;` .. ;• ,
<br />' ; ' ? Y, ii, It► , "_, :.. sty' credited with any balance remaining for all installments for items (a), (b) and (c).
<br />t %'• „
<br />3. Applklifto of Payaeats. AB payments under paragraphs I and 2 shall be applied by Lender as follower: },�.:'•• -
<br />,:.,,.L:, FIR . to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretary L.
<br />instead of the monthly mortgage insurance premium, unless Borcowcr pu3d the cnt:.. moriQate insurrtnK Premiwa when this
<br />Security ia3froment was signed; _-
<br />r'�jl,. • SECONIA, io any taxes. special assessments, leasehold payments or ground netts, and fire, flood and other hazard insurance
<br />f ` premiums, as required;
<br />MEintto
<br />erest due under the Note;'•
<br />. to amortization of the principal of the Note,
<br />FIFTH, to late charges due under the Note. r
<br />4. Firs. flood sad Other Hasutrd Imamate. Borrower shall insure all improvements on the Property, whether now in existence
<br />or subsequently erected, against any hazuds, 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 Secrelm. Ali insurance shall be carried with companies approved by Lender. The insurance policies and any renewals
<br />f - be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to. Lender.
<br />t In the event of lots, 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 />7 Lender, instead of to Borrower and to Lender jointly. AB or any part of the insurance proceeds may be applied by Lender, at its i
<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 />S amount required to all outstanding indebtedness under the Note and this Security instrument shall be paid to the entity legal- e
<br />ly entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the in- k,
<br />debtedrtess, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />S. Preservation and Malatestaace of the Property, Leaseholds. 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 the 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 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 shall not be merged unless Lender
<br />agrees to the merger in writing.
<br />6. CtasMw to Borrower and Protection of Leader's Rights In the Properly. Borrower shall pay all governmental or municipal
<br />+ " charges, fines and impositions that are not included in Paragraph 2. (30rrOwer shall pay these obligations on time directly to the
<br />entity which is owed the payment. lie failure to pay would adversely affect Lender's Interest in the Properly, upon Lender's re-
<br />' t: , s
<br />entity Bent is shall he paym furnish it Lender receipts evidencing these payments. �
<br />if Borrower fails to make these payments of the payrrems required by Paragraph 2, or fails to perform any other covenants and
<br />r,6•f I agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in
<br />'1 • the Property (such as a proceeding in bankruptcy, for condemnation o; to enforce laws or regulations), then Lender may do and
<br />pay whatever is necessary to protect Ot value of the Property and Lender's rights in the Properly, including payment of taxes,
<br />_ u ,,!,� ::' a hazard insurance and other items mentioned in Paragraph 2.
<br />I pr (r• ',l .' Any amounts disbursed by lender under this Paragraph shall raceme an additional debt of borrower ants oc xcu�ca by •••��
<br />Security Instrument. These amounts shat: bear interest from the date of disbursement, at the Note rate, and al I option of
<br />Lender, shall be immediately due and sayable
<br />condem
<br />"•�zy. +'' 7. Coodeaallon. The proceeds off any award or claim for damages, direct or consequential. in connection with any
<br />m oc shall be
<br />or other taking of any pan of the Property, or for conveyance in place of condemnation, are hereby assigned and Inst be
<br />paid to Lender to the extent of the ful; amount of the indebtedness that remains unpaid under the Note and this Security Instru•
<br />ment. Lender shall apply such proceeds to the reduce r. of the indebtedness under the Note and this Security tnsrrument, first to
<br />! any delinquent amounts applied in the order providet: i- Paragraph 3, and then to prepayment of principal. Any application of
<br />the proceeds to the principal shaft not extend or postpone the due date of the monthly payments. w•brch are referred to in
<br />1 Paragraph 2, or change the amount of such payments. Any excess proceeds over an amount required to pay all outstanding in-
<br />t debts dress under the Note and this Security Instrument shall be paid to the entity legally entcd[ed thereto.
<br />8. Fees. Lender may collect fees and charges authorized by the Secretary.
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