|
���107h33
<br />, 1. Payment ut Priceipai.lnterest aad Lale CharQe. Bortower shaii peY wlien due thc p:Lncipal of.aid imerest on.
<br /> the debt eviderced by the Note azM la�e cha[ges due umkr�he Note.
<br /> 2 1Aonthl8 W9�nd of'hce,Ioaunnce uM OILer Chvges Bortower shall include in eacli mmN1Y pnYment.
<br /> iogethn wi�h �he Drincipal vid intercs[ az set Ewth in tAe Nae and eny Iete c4uges. en insullment oF my (a) uaes md
<br /> special assessmcnts levied or to be levied agains�[he Properry.@)Iesselwld paymcnts or g�a�nd ients on the Pmperty.and
<br /> (c)prcmiums for insurnnce required by Puayaph 4.
<br /> Fach monthly installma-:: :ar itzms ia}. (b) e�d (c) sheil equal a�e-lwNRh of Ihe annual amerants, az mawrmuly
<br /> a�maied by I.ender, plus an amwnt sufticimt to maintain an additional balance of na morc than ono-sixth of the
<br /> essirmated amounts. '[he full annual art�onn! (or cach item shall be attumulated by I.ender withi� a period ending one
<br /> moneh before a�item would become delirpuent I,erder shalf hold Ihe amwmu collated in trust to pey items (a), @}and
<br /> (c)betorc Uxy become defupuent.
<br /> lf at any time the taal oC the payments held by Lender for items (a), (b) and (c), togelher with the fuwrc monthly
<br /> payments for such irems payable m [.ender prier to the Gue dates of such items, exceed by morc than one-sixth the
<br /> admated amount oP payments fequired to pay such i[tms when due,and if paymenls cn ihe Note ere curtent, �hrn Lender
<br /> shall tither�efund the excess ovcr one-sixPA of the estimeted payments or credit thc excess over o`re-xixth of the atimeted
<br /> paymenis to subsequenl paymer.ts by Bormwtt,at the option o(Bortower. If 1he total of ihe paymenis made by Bortuwer
<br /> Por item(s).(b),or(c)is imu�cient lo pay Ne item whertdue,thrn Bortower shall pay to Lendcr any amount necessary to
<br /> make up the deflcirncy on or befo(e the dale the item heeomes due.
<br /> As uscd in this$ecuriry Inatmment, "Secrctary"means the Sccmtary of Housing and Urban Developmrnt or Ms or her
<br /> designa. ?� any year in which�he Lender must pay a mortgage insurance premium lo the Secrtary,each monlAiy payment
<br /> shnll als�. include eilhtt: (i) an instnllmrnt of the nnnuel mortgage insurance prcmium to 6e paid by Lrne6_r to the
<br /> Sxretary, or (ii) a monthly charge insteed o(e mortgage insutarue premium if�his Seturity Inswment is hcid by the
<br /> Secmtary. Fach monthly instaliment of Ne mongage insurentt prcmium shell be in an amount sumcient to accumulate the
<br /> full annual maegtge insurance premiem wiGh I.:nC:r one momh grior ro the �i:.=e the NII annual mongage insu.ance
<br /> pnmium is due to the Secrc�ary; or if this Saurity Inswmen[s held by the Secrctary,eaeh mort�hly charge shall be in an
<br /> emount equzl to or.�-tweifth of w�e-half pevicent of the outstanding prirrcipal balazrce due on tlre Nare.
<br /> If Bortower mnders m Lcnder the tull payment of ail sums ucured by ihis Security Instrumrnt, Bortower's account
<br /> shall be crediu� with the balance mmaining for all installmrnts for i�ems (a), (b) and (c) a�d any mongege insuranee
<br /> p'emium installment that Lendtt haa not 6ecome obligeted m pay to 1he Secretary, a�d Lender shall pmmptly rtfund any
<br /> ezcus funds[o Bortuwer. Immediately prior m a(ortxlosum sale of the Property ar i[s acquisi:ion by Lendcr, Bortowtt's
<br /> account shall be creditW xith any baterice remaining(or all inslallments Por items�a),(b)and(c).
<br /> 3. Applisation of PaymenLC All payments under Pamgraphs 1 end 2 shali be applicd Gy Lender aa loliows:
<br /> FlRST,to the mw!page insurence pmmmm ta Fx paid by Lender to the Secretary or lo the momhly chuge by�he
<br /> Sarctary instead o. the monfhly mortgage insurance pmmium;
<br /> SECON�4,to any taxu,speciel acsessmenls, leasehold paymems or ground rcnts,and firc,Oood and other hazard
<br /> insurance promiums,as requimd; '
<br /> THIRD,to iuterest due under Ihe Note;
<br /> FOUK�H,�o amortiration o(the principal of the NotC �
<br /> p�,to late charg�s due under the Note.
<br /> 4. Firc,Flowt and Other Hazard Insurantt. Bo(rower shall insurc ali improvements on Oie Property, wh<Iher now
<br /> in ezislence or suMequrnUy ertaed, against any hazards, cazuallies, and conlirtgrncies, including lire, (o� which Lender
<br /> requircs insurante. 751is insurMtt shall be maintained in 1he emounL� and (or thc perials Ihal Lender requires. Rortower
<br /> shall also insure all impmvemems em the Pmperty,whelher now in ezistence or subuquently erecied.against loss by floods
<br /> lo thc ulenf mquimd by !he Sm¢tery. All insurantt shall be ca-ried wi�h companies approved by Lenden The insu�ance
<br /> policia wd any rer�ewals shali bc heid by Le�der anL shall include loss payable clauus in favor o(, and in a (ottn
<br /> accep!abte to.Lender.
<br /> In the evcnt o(loss, 8ortower shall give Lender immedia�e notim by maii. Lrnder mar make prmf o( loss i(not
<br /> made pmmptly by Borrowec Each insurance rnmpany corrcemed is hereby authorired and direcled to make paymenl fur
<br /> such Iosc direc�ly to Lender, instead of to Borrower and�o Lenderjoimly. Ail or any pan of the inxurance pmceeds mny be
<br /> appliM by Lender,at iLS option,either(a)lo Ihe reduction of the indebtedness under the No�c and �hix Sccurity Inxlrumr,nl.
<br /> first lo any ddinyurnl nmounis appiied in 1he order in Paregrnph 3, nnd then In prepayme�t of principal, or (b) �o ine
<br /> restoralion or rcpair of:he damaged pmperty. Any application o(�he proceeds to ihe principa� sha13 not exlend or poctpone
<br /> 1hc due date n(the manthly payments which aze referted lo in P�mgraph 2. or change Ihe amount of cucn paymenit. Any
<br /> ezecss insurance proceeds over an amount requimd to pay all ou�standing mdeMedrrcss under Ihr, Note and this Security
<br /> instrumrnt shail tre paid Io the rnlily legally emilled Ihemlo.
<br /> In 1he evene o( forcclnsure o( this Security Inslrumen� or other transfer o(tilk lo ihe ProFxny that ex�inguishes the
<br /> indebtedness,all right.title and imercsi of Borrower in and to insuranct policies in force chal! ps:x to�he purchaser.
<br /> S. Octupancq, Preservatlon, Maintenantt and Protectfon oi the Property; 8orrower's Loan Application;
<br /> Lenuholds. Bortower shall acupy, establish, and uu the Property a5 8ertower's principal rcsidence within sinry Jays
<br /> after the executian of this Security Inswmrnt and shall cominue to occupy [he Property az Borrower s principal residence
<br /> (or at leasl one year a([er the date of xtupaz�ty,unless the Samtary determines Ihis requi¢ment will cau.0 undu<hardship
<br /> (or Bortoweq or unless exlenuating circurtistances exist which nrc beyo'M Bortowers convoi. Dortuwer shall nolify
<br /> l.enders o(any eztenuating cimumx�aaces. Bartower shall not tnmmit waa�< vr destmy, damage or substamieily chnnge
<br /> ihe Property or allow�he Property to deteriofa�e,reasonable wear a�tear ezcepled. Lender may inspec�the PYnperty i(the
<br /> Property is vacant o!abandoned or Ihe loan is in defaulL Lender may take rcasonabic action �o pmtrct artd prcsme such
<br /> vacant or abandoned Propeny. Bortower shall alw be in default it Bolrower. during the loan applicalion proc!ss, gave
<br /> materially falu or inaccurate information or stattments to l.en6v (or failM w provide Lender wi�h any mamrial
<br /> infortnation) in conntttion wilh Ihe loan evidenced by ihe Note, including, but nol limiled Io, representalions conceming
<br /> Borrower's uccupancy of the Propeny aa a principal aridence. If this Stturity Inslrumrnt is on a leauhold, Bortuw<r shall
<br /> comply with the provisions of the leau. If Borrower acquircs ftt titk to the Pmpeny,thc leavahold and (x �iUc shall not
<br /> be mergcei unless Lendcr agrees Io Ihe merger in writing.
<br /> 6. Charges m Rurrower and Protection of Lender's Righls in the Property. Bortower sheii pay eIl govemmental
<br /> or municipal charges, fines and impositions that a¢ not included in Psragraph 2. Bormwer shall pay �h�u obiigations on
<br /> time dircctly to the entity which is owed Ihe paymenL If failum ro pay would adversely a(fect Lender's imercst in rhe
<br /> Pmpeny, upon Lender c rcquest Bortower shail promptly Pomish�o Lender receipts evidencing Ihese payments.
<br /> 1( Bortower fails Io make these payments m the payments mquired by Vaagraph 2, or (ails Io pedorm any olher
<br /> covmanis and agrcements contained in this Security inswment,or lhert is a Icgal proceufing lhat may significamly a:(at
<br /> Lender's rights in Ihe Property (such as a pmcecding in benkruptcy, (or condemnation or to enfomc laws ar regulalions),
<br /> then I.ender may do and pay•.vhatever is neces.cary 10 pmtmt the value uf the Propeny and Lendcr'.s righls in�he Propeny,
<br /> inCluding payment o!tazes,ha�ard insurarrce and olher ilems mwtioncd in Paragraph 2.
<br /> Any amounts disbunN_ by Lender under this Pangrnph shal! become an additional debt o(Borrower xn� he uwrcd
<br /> by Ihis Sewrity lnstmment. TTCSe amounis shall bear interest fmm 1he da4 of dishurscmenl, a� Ihe Noic ram, and a� Ihc
<br /> option of Lender,sha'.I be immediately due and payable.
<br /> 7. CondemnaHon. The proteeds o(any award or claim for damages,dimc[or consequmtial;in connecticn with any
<br /> condcmnation or othcr taking of ariy part of the Property,or for conveyamx in place o:condemnalion, arc hercby assigned
<br /> and shall bc paid m Lender to�he eztent o(thr PoII amount a£the iMieM1tedMSS�fiat rcmains unpaid u�er the Note mW this
<br /> Sceuriy Inswmcm. Lendcr shail apply such proceeds to ihe rcduction of tlrc indebttdnas under the Nole and this Securiry
<br /> Instrumem. first �o any dclinqurnt amounts eppiied in �he onler provided in Parograph 3, ond �hen �o prcpayment of
<br /> prin<ipal. Any application o( the pm�eeds m the principal shell no� e>:end or postpone �he due dam of the monehty
<br /> (page:oJa�pF�el
<br />
|