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<br />141
<br />90-407193
<br />As used in this Sec rMy lnatna M% "secretary" "tots this Secretary of Housing and Won Devwoprnenl or his or her deaWAe.
<br />mortgage
<br />Moil Seority Instruments insured by the Secnlay w ms Insured under program which require advance payment of the entire
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<br />insursnoe prsrntuln, N this Security Instrument is or visa insured under ■ program which did not require advance payment of the entire
<br />mortgage Inewance premium, then each monthly payltwN sisal also Include sither. W an InstaMnent of the annual mortgage inauratae
<br />by Lander to the Swap". or (ii) a monthly charge Instead of a mortgage Insurance premium it this Security
<br />pnntlum to be petd
<br />Instrulment Is hold by the Seastiary. Each monthly hsWnwnl of the mortgage insurance premium shag be In an amount sufficient to
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<br />ogre arrseN modgsipe ktatranoe prop* n with Lender one month peke to the date the lug annual mortgage Insurance
<br />premium is dw to the Secretary. or II this Security Instrument Is hold by the Seem". each monthly charge shall be In an amount
<br />equal bOtte MNMth of NW MN penceni of the outstanding principal balance due on the Note.
<br />Y
<br />N Borrower tenders to Lender the fug paymatt of el sums segued by this Security Instrument, Borrower's account shall be c raMed
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<br />with the balance rernakdng far AN installments for items (a), (b) and (c) and any mortgage Insurance premium Installment that Lander
<br />has not beoonw obligated to pay to the Secretary. and Lander shall promptly, Mond any excess funds to Borrower. Immediately prior to
<br />a toradosure sale of the P►opady or Ys eragaisWon by Lender. Borrower's account shag be credited with any balance remaining for all
<br />Installments for and (o). items (a), (b)
<br />3. Applilistion of PaymonW AM payn no is w-Ww paragraphs 1 and 2 shag be applied by Lender as follows:
<br />First to the mortgage insurance prernirrm to be paid by Lander to the Secretary or to the monthly charge by the Secretary
<br />the entire mortgage Insurance premium when this Security
<br />Instead of fibs ntontlty mortgage irasurartoe pracdursa unless Borrower paid
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<br />Instrument was signed;
<br />Second, to arty taxer. WON aseeswmts, kesehotd payments or ground rents, an d tire, flood and other hazard Insurance
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<br />premiums. as required:
<br />Third. to Interest due under the Note:
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<br />Fourth. to amortaation of the principal of the Note:
<br />Fifth, to late charges due under the Note.
<br />4. Fire. Flood and Other Hazard Insurance. Borrower shall Insure all hW,ovements on the Property. whether now In
<br />existence or subsequently erected, against any hazards, casualties, and contingencies. Including fire for which Lender requires
<br />Insurance Thin insurance shall be maintained In the amounts and for the periods that Lender regt;lres. Borrower shag also Insure a:1
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<br />Improvements on the Properly, whether now In existence or subsequently erected. against loss by floods to the extent required by the
<br />Secretary. AN insurance shalt be carried with companies approved by Lander. Th e insurance policies and any renewals shag be held by
<br />Lender and shd Include loss payable dausas in favor of, and In a form acceptable to, Lender.
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<br />In the event of loss, Borrower and give Lender hnmediste notice by mail. Lender may make pron'r o' loss if not made promptly by
<br />Borrower. Each insurance cornpony wxiletn ad is hereby authorized and directed to nuke rtayment far such loss direclhr to Lender,
<br />instead of to Borrower and to Lender Jointly. All or any part of the Insurance proceeds r^ay be applied by Lender, at its option, either
<br />r %al to the reduction of the indebtedness under the Note and this Security Instrument, first to any delinquent amounts applied In the order
<br />- Paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair of the damaged property. Any wl2iication of the
<br />proceeds to the principal shit not extend ar zostpone the due date of the monthly payments which are teierred to in Paragraph 2, or
<br />change the amount of such payments. Anp excess insurance proceeds over an amount required to Fay all outstanding Indebtedness
<br />under the Note and this Security Instrument shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the Indebtedness, all
<br />dght, title and Interest of Borrower in and to insurance policies In force shag pass to the purchaser.
<br />5. preservation and Maintetsanie•e of the Property. Leaseholds. Borrower shall not commit waste or destroy.
<br />damage or substantially change the Property cr allow the Property to deteriorate, reasonable wear and tear excepted. Lender may
<br />inspect the property If the property is vacant or abandoned or the loan is in default. Lender may take reasonable action to protect and
<br />pcaseve such vacant or abandoned property. II this Security instrument Is on a leasehold. Borrower shall comply with the provisions
<br />of the lease. Il Borrower acquires fee title to the Property. the leasehold and lee title shag not be merged unless Lender agrees to the
<br />merger In wi ilkng.
<br />S. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all
<br />governmental or municipal charges. fines and Impositions that are not included in Paragraph 2. Borrower shall pay these obligations on
<br />time directly to the entity which is owed the payment. It failure to pay would adversetb affect Lender's Interest In the Property, upon
<br />Lander's request Borrower shag promptly furnish to lender receipts evidencing these payments.
<br />N Borrower falls to nuke these payments or the payments required by Paragraph 2. or fails :: 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 the
<br />Property (such as a proceeding In bankruptcy, for condemnation or to entarce laws or regulations). then Lender may do and pay
<br />whatever is necessary to protect the value of the Property and Lender's rights In the Property. including payment of taxes. hazard
<br />Insurance and other Items mentioned in Paragraph 2.
<br />Any amounts disbursed by Lender under this Paragraph shall beccme as additional debt of her 'wM and be secured by this
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<br />Security Instrument. These amounts shall bear Interest from 1 ".e date of clsbursement. at the Note rate. a::l at the option of Lender, shall
<br />be imnssdbtely due and payable.
<br />7. Crondemnation. The proceeds of any award or cia n or da rages. viect or consesuentral, In connection wdh arty
<br />condennrifta- :' other taking of any part c' ne Property, or for wr.:.r;�:gr:a in place of condemnat:cn. aye hereby asslgred sera •;` a !
<br />be paid to LetWor to the extent of the ft:R amount of the indebtedness toat remains unpaid under the !cote and this security tasv:.-•+e-•:
<br />Lender shall apply such proceeds to the reduction of the Indebtedness under the Note and this Security tnstnrment Prst is a ;y
<br />dagnquent amounts applied in the order provided in Paragraph 3, and then to prepayment of principal Any application ct the proceeds
<br />to the principal shag not extend or postpone the due date of the monthly payments, which are roernea to in Paragrapn 2. rr c'r.+••ryc
<br />the amount of such payments. Any excess proceeds over an amount required to pay all outstanding indebtedness under the Note a•rd
<br />this Security instrument shall be paid to the entity legally entitled thereto.
<br />S. Foes. Lend" 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, require
<br />Yn mediate payment In fug of all sums secured by this Security Instrument of
<br />961rSCn (WIM
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