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<br />90---107097
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<br />1. Pwauaal of PrIandAffil, latinat used Late Charge, Borrower shall pay when due the principal of. and interest on, the debt
<br />evidenced by the Note and late charges due under the Note.
<br />2. Moalhly Paytl ou of Team. Insurance and Other Cl asga, 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 />for°
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<br />levied or to be levied against the Property, (b) letuehold payments or ground fonts on the Property, and (c) premiums
<br />insurance required by Paragraph 4.
<br />Each monthly installment for items (a), (b) and (c) shall equal one - twelfth of the annual amounts, as reasonably estimated by
<br />Lender. plus an amoral sufficient o maintain an additional balance of not more than one -sixth of the estimated amounts. The
<br />be by Lender within it period ending one month before an item would
<br />full annual amount for each item shall accumulated
<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
<br />for such items payable to Leader prior to the due dates of such items, exceeds by more than one -sixth the estimated amount of
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<br />u required to y such items when due, and if payments on the Note are current, then Lender shall either refund the
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<br />the excess over one -sixth of the estimated payments to subsequent
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<br />excess over one -sixth of the estimated payments or credit
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<br />by Borrower, at the option of Borrower. If The total of the payments made by Borrower for item (a), (b), or (c) is
<br />+
<br />pptanyments
<br />htsufficient to pay the item when due, then Borrower shall pay to Lender any amount necessary to matte up the deficiency on or
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<br />before the date the item becomes due.
<br />As used in this Security Instrument, "Secretary" mum the Secretary of Housing and Urban Development or his or her
<br />insured by the Secr.tary are insured under programs which require advance payment of the
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<br />designee. Most Security Instruments
<br />entire mortgage insurance premium. If this Security Instrument is or was Insured under a program which did not require advance
<br />shall also include either: (i1 an installment of the
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<br />payment of the entire mortgage insurance premium, then each monthly payment
<br />annual mortgage insurance premium to be raid byLerder to the Secretary. or (ii) a monthly charge instead of a mortgage
<br />Secretary. Each monthly installment of ;t:e mortgage insurance
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<br />insurance premium if this Security Instrument is held ry the
<br />shall be in an amount sufficient to accumulate the full annual mortgage insurance premium with Lender 'one month
<br />premium
<br />prior to the date the full annual mortgage Insurance premium is due to the Secretary, or if this Security Instrument is held by the
<br />to one - twelfth of one -half percent of the outstanding principal
<br />Secretary, each monthly charge shall be ire an anpunt equal
<br />balance due on the Note.
<br />If Borrower tender to Lender the full payment of all sums secured by this Security Instrument, Borrower's account shall be
<br />credited with the balance remaining for an installments for items (a), (b) and (c) and any mortgage insurance premium
<br />Secretary, and Lender shall promptly refund any excess funds to
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<br />installment that Lender has not become obligated to pay to the
<br />Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall be
<br />credited with any balance remaining for all installments for items (a), (b) and (c).
<br />3. Applicatba of Paymeats. All payments under paragraphs I and 2 shall be applied by Lender as follows:
<br />to be by Lender to the Secretary or to the monthly charge by the Secretary
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<br />F1M. to the mortgage insurance premium paid
<br />instead of the monthly mortgage insurance ptessittt,i, unless Borrower paid the entire mortgage insurance premium when this
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<br />Security instrument was signed;
<br />to any taxes, special assessments, leasehold payments or ground rents, and Fire, flood and other hazard insurance
<br />,§ECOND,
<br />premiums. as required;
<br />THIRQ. to interest due under the %,%le:
<br />O R , to amortization of the Trincipal of the Note;
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<br />FIFTH. to late charges due under the Note.
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<br />4, Fire. Flood ad Other Huard lasurataa. 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 />for the that Lender requires. Borrower shall also insure all
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<br />This insurance shall be maintained in the amounts and periods
<br />improvements on the Property, whether now in existence or subsequently erected, against loss by fiocds to the extent required by
<br />be with companies approved by Lender. The insurance policies and any renewals shall
<br />the Secretary. All insurance shall carried
<br />be held by Lender 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 />is hereby authorized and directed to make payment for such loss directly to
<br />ly by Borrower. Each insurance company concerned
<br />Lender, instead of to Borrower and to Lender jointly. All or any pat of the insurance proceeds may be applied by Lender, at its
<br />indebtedness under the Note and this Security Instrument, first to any delinquent
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<br />option, either (a) to the reduction of the
<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 />the to the principal shall not extend or postpone the due date of the monthly
<br />damaged property. Any application •'i proceeds
<br />payments
<br />ndebtedness under h Note and this S curitc instrument shall be paid to the entity legal-
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<br />mnt required to pay all cutsianding
<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-
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<br />debtedness. all tight, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />S. Preservation wind Maintenance of the Property, Lotasebolds. Borrower shall not commit waste or destroy, damage or
<br />the Property to deteriorate, reasonable wear and tea excepted. Lender may inspect
<br />substantially change the Properly or allow
<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 ; ropeity. If this Security Instrument is on a leasehold, Borrower shall comply with the provi-
<br />sions of the lease. If Borrower acquires lee 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 sad Protection of Leaders Rights is the Property. Borrower shall pay all governmental or municipal
<br />included in Paragraph 2. Borrower shag ray these obligations on time directly to the
<br />charges, fines and impimivons that are not
<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 Bon. rower shall promptly furnish tr Lender receipts evidencing mese payments.
<br />If Borrower fails to make these payrrems or the payments required iy Paragraph 2, or fails to perform any other covenants and
<br />contained it. this Security Dnstrument. :r these is a legal proceeding that may significantly affect Lerw'.er's rights in
<br />agreements
<br />the Property (such as a proceeding in 1•ankruptcy, &T condemnation or to enforce laws or regulations), then Lender may do and
<br />value of the Property and Lender's rights in the Property, including payrnent of taxes,
<br />pay whatever is necessar� to pr-rtet :'he
<br />hazard insurance and other i'erss men °coned in Paragraph 2.
<br />Any amounts disbursed ry fen :.',^ :.Oder this Paragraph shall become an addtuonai deor of oorrowcr anti be %c uuc,i tin :G,s
<br />'these bear interest from the date of disbursement, at the Note rate, and at the option of
<br />Security Instrument. amounts shall
<br />Lender, shalt be scume :ately due and payable.
<br />7, CMdemna6aw. 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 Security 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, which are referred to in
<br />Paragraph 2, or change the amount of such payments. Any excess proceeds over an amount required to pad• 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 />Post 2 „14
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