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{P- 641
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<br />90- -107229
<br />1. Payment of PdaclOal, list rot and Late Clamp. Borrower 1161111 pay when due the principal of, and interest on, the debt
<br />evidenced by the Niue and Ile charges due udder the Note.
<br />A Moatldy Payments of Taxes, lasttraaoe and add Cklarpit, Borrower shall include in each monthly payment, together with
<br />the principal and Interest u at forth in the Note
<br />b�b� payments or ground rent Installment on he (Property, and (c) aurstiments
<br />levied or to be levied agsdnst the Pro
<br />inturatke required by ParaBriph 4.
<br />Each monthly in$Wb mt for Items (a), (b) and (e) shall equal one twelfth of the annual amounts, as reasonably estimated by
<br />Lander, plus an amount sufficient to maintain an additional balance of not more than one-sixth of the estimated amounts. The
<br />full manual 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 itmu (a). (b) and (c) before they become delinquent.
<br />U at any time payable to Lender priioor to he due dues of such items,, exceeds bycmote than onasixth the estimatedyapayments tof
<br />for such items pays t on the Note are current, then Lender shag either refund the
<br />payments required to pay such Items when due. and if payments
<br />excess over one -sixth of the estimated payments or credit the excess over one -sixth of the estimated payments to subsequent
<br />ppaayments by Borrower, at the option of Borrower. If the total of the payments made by Borrower for item (a), (b), or (c) is
<br />=111)cient to pay the item when due, then Borrower shall pay to Lender any amount necessary to make up the deficiency on or
<br />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
<br />designee. Most Security Instruments insured by the Secretary are insured under progtaass which require advance payment of The
<br />entire mortgage insurance premium. If this Security Instrument is or was insured under is program which did not require advance
<br />psymatt of he entire mortgage insurance premium. then cub monthly payment shall also include either: iii) an installment of the
<br />annual mortgage insurance premium to be paid by Lender to the Secretary, or (11) a monthly charge instead of a mortgage
<br />imutance premium if this Security Instrament is Kehl 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 date the full annual mortgage insurance premium is due to the Secretary, or if tlhis Security Instrument is held by the
<br />Secretary, 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 Note.
<br />If Borrower tenders to Lender the full paymern of all sums secured by this Security Instrument. Borrower's account shall 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 fund; to
<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. Application of Playmate- 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 monthly charge by the Secretary
<br />iaslead of the monthly mortgage insurance premium, unless Borrower paid the entire mortgage insurance premium when this
<br />Security Instrument was signed;
<br />SIECOND, to any taxes. special assessments, leasehold payments or ground rats, and fire, filaod and other hazard insurance
<br />premiums. as required;
<br />THIR , to interest due under the Note;
<br />FOURTH, to amortization of the principal of the Note;
<br />FI H, to late charges due under the Note.
<br />4. Fire, Flood and Other Hasard Iasantsce. 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. All insurance shall be carded with companies approved by Lender. The insurance policies and any renewals shall
<br />be held by Lender and shag 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 />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 part 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, asd 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 outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legal•
<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-
<br />debtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />S. Preservation and Maintenance 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. I f 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 leaseh old 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 Rights in Ike Property. Borrower shall pay all governmental or municipal
<br />charges, fines and impositions t hat are not Included in Paragraph 2. Borrower shall pay these obligations on time directly i o the
<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 Borrower shaii promptly furnish to Lender receipts evidencing these rayments.
<br />If Borrower fails to make these payments or the Payments required t,y PW.Wnph 2, or fails to perform: any oilicr covenants and
<br />agreements contained in this Security Instrument. or there is a legal rrocee ding that may signift:antty al.ect Lender's rights in
<br />the Property (such as a proceeding in bankruptcy, for condemnattrr or t: enforce laws or regulations►, then Lender may do and
<br />pay whatever is necessary to protect the value of the Proreny and Lender's rights in the Property, including payment of taxes.
<br />hazard insurance and other items mentioned in Paragraph
<br />..a.t:.t....t .11.6. Ct n..,..,..,., and M u Ir,.d by this
<br />Any amours disbursed by iender under tnis �u.aia{ri. a..w.:: �.�. —•c ���•••�, -• �•�. -. - -
<br />security instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the option of
<br />Lender, shall be immediately due and payable.
<br />1. Condemnation. The proceeds of any award or classes for damages, direct or consequential, in connection watt 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 pay 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.
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