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<br />Isach monthly installment for items lu), (b), and (c) shall equal one- twdtth of the uunuul amounts, as reasonably estimated
<br />by lender, plus an amount sufficient to maintain an additional balder with n At more period than nding tine tmonth hbefore up item would
<br />The full annual amount for each item shall he accumulated by Len
<br />become delinquent. Lender shall hold the amounts collected in trust to pay items lul. Ibl, reed Icl before they become delinquent.
<br />If at any time the total of the payments held by lender for items la), lb), and lei, together with the future monthly payments
<br />for such items payable to Lender prior to the due dates of such items, exceeds by more thus one -sixth the estimated amount
<br />of payments required to pay such items when due, and if payments on the Note are current, then lender shall either refund
<br />the excess over one sixth of ttre estimated payments or credit the excess over one sixth of the estimated payments to subsequent `
<br />payments iufficient to pay the at
<br />tem when n due `then Borrower.
<br />Borrower shall pay to Lender any amountbnecessary to for ake up the deficiency
<br />on or before the date the item becomes due.
<br />As used in this Security Instrument, "Secretary" means the Secretary of Housing and Urban Development or his or her —s
<br />designee. Most Security instruments insured by the Secretary are insured under programs which require advance payment of
<br />the entire mortgage insurance premium. If this Security Instrument is or was insured under a program which did not require
<br />advance payment of the entire mortgage insurance premium. then each monthly payment shall also include either: (i) an installment „ -w -• - -
<br />of the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage - -
<br />insurance premium if his 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 full annual mortgage insurance premium with Lender one month - T
<br />prior to the date the full annual mortgage insurance cmount,oto one-twelfth Ifth of half percent of ek;uyij% instrument is held
<br />he oumau4ing principal
<br />by the Secretary. each monthly charge shall be equal " ' ~�"*" 7 •-�
<br />balance due on the Note.
<br />If Borrower tenders to Lender the full payment of all sums secured by this Security- instrument, Borrower's account shall
<br />be credited with the balance remaining for all installments for items (a), (b), and (c) and any motBrefundinsurance
<br />excess funds t
<br />installment that Lender has not become obligated to pay to the Secretary. and Lender ha promptly
<br />to Borrower. Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall
<br />be credited with any balance remaining for all installments for items (a), (b), and (0.
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<br />3. Application of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the moWN' d'. charge by the Secretary
<br />instead of the monthly mortgage insurance premium. unless Borrower paid the entire mortgage insurance premium when this
<br />pr ,•K
<br />Security Instrument was signed;
<br />Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazar�l insurance
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<br />premiums, as required; {
<br />Third, to intionest due under the Note;
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<br />Fourth, to arltortixation of the principal of the Note;
<br />Fifth. to late charges due under the Note. `
<br />4. Fire. Flood and Other Huard Insurance. Borrower shall insure all improvements an the Propert), whether now in ;
<br />existence or subsequently erected, against any !hazards, casualties, and contingencies, including fire. for which Lender requires
<br />insurance. This insurance shall be maintained in th,t amounts and for the periods that Lender requires. Borrower shall also
<br />insure all improvements on the Property, whether now in existence or subsequently erected. against loss by floods ci s a extent
<br />required by the Secretary. All insurance shall be carried with companies approved olicies and any
<br />oved by Lender. The insurance
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<br />renewals shall 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
<br />promptly by Borrower, Each insurance company concerned is hereby authorized and directed to make payment for such loss
<br />directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may be applied
<br />by Lender. at its option, either da) to the reduction of the indebtedness under the Note and this Security Instrument. first to
<br />any delinquent amounts applied in the order in Paragraph 3, and then to prepayment of principal. or (b) to the restoration
<br />or repair of the damaged property. Any application of the proceeds to the principal' shall not extend or postpone the due date f , , +l
<br />of the monthly payments which are referred to in Paragraph 2, or change the amount of such payments. Any excess insurance
<br />proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be
<br />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 (he
<br />indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser. '
<br />5. Preservation and Maintenance of the Properly. 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 ptopert;. is vacant or abandoned or the loan is in default. Lender may take reasonable action to protect
<br />and preserve such vacant t,r abandoned property. If this Security Instrument is on a leasehold, Borrower shall comply with
<br />the previsions of the lease. If uorrower acquires fee title to the Property, the leasehold anal fee title shall not be merged unless
<br />Lender agrees to the merger in writing.
<br />b. Charges to Borrower and Protection of Lender's Righis In lose Properm. Borrower shall pay a.; , , v crnmcnlai or municipal
<br />charges, fines and imposition that are not included in Paragraph :. Borrower shall pay these obligations on time directly tD
<br />the entity which is owed the payment. If failure to pat wa�'l. :;t adve:sei> affect Lender's interest in the Property. ut^esn Lender's
<br />request Borrower shall promptly furnish to Lender receipts c%ider:ing these payments.
<br />If Borrower fails to make these payments or he payments requrr :a r y Paragraph 2. or fail-, to perform any other covenar. ^s
<br />and agreements contained in this Security Instrument, or there is a legal procceding that may orneaulativ affect ct rte der'% may
<br />lin the Property (such as a proceeding in iranw�apit?. ::•: �• •- =
<br />1 do and pay whatever is necessary to protect the value of the Property and Leader', rights in the Property, including payment
<br />of taxes. hazard insurance and other items mentioned ir•. Paragraph 2.
<br />Any amounts disbursed by Lender under this Paragraph sha(I become an additional debt 55f Borrower and he securl•d
<br />by this Security Instrument. these amounts .hall hear interest from the date ,11 dlshurscment, at the Note rare, and ar the
<br />option of Lender, shall be immediately due and riavahie.
<br />7. Condemnation. rite proceeds of any award or claim for damages. direct or consequential, in connection with any
<br />condemnation or other taking of any part of the Property, or lot- conseyance it, place of condemnation, are hereby assigned
<br />and shall be paid to Lender to the extent of the full amount tit the Indebtedness that remains unpaid under the vote and this
<br />Security Instrument. I ender shall apply such proceeds to the reduction oI the Indebtedness under the Note and this Securty
<br />Instrument, first to any delinquent amounts applied in the order provided in Paragraph 3. and then to prepayment of principal.
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