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<br /> BORkOWE[t COVEIVANTS that B�rrower is lawfully srised of the esstaatc her�b;� conveyed and has the right to ,
<br /> gruit aad eonvcy the Pzaperty and that. the Property is unencumbered. except for encs:�mbrances of r�ord. Bormwrr
<br /> warrants and w�ill defrnd gcacraliy t�e title to ihc Prvpacy against all claims and dtasands, st:bject to any encumbrances
<br /> of recard.
<br /> THIS SECTJ�I'�'Y INSTRUriENT cambiaes uniform co�_��.:-.; to;national use and non-an:farrn coveaaats v..ch
<br /> limited variadons t+y iuri�diction to constitnte a unif.acro ser:r.�; .:_,:vment covering real PmP�l.
<br /> liNIFQRM COVENANTS. &arrowe� and ixnder covr.�ant and agree as folIows: �
<br /> i. Paymmt of Principal. Intae�. ?nd �c (harSe- Borrower shall pay wh�n due the p:incip�l of,�nd interest
<br /> on, ihe debt evidenced by the N�te and iate charges due �:der the Note.
<br /> 2. Manihty Paymestt of Ta�;:,InSUrance, and Other C�ar�s• �orro�u'er shall include in eactf monttily payment,
<br /> together with the principat and interesi a5 sei forth in the No.e and any late charges, a s,un for(a) tazes and special
<br /> assessmenLs levic�c.' or to be levied against the Property, (b) I�sehold paymenu or grour,3 nats on the Froperty, and
<br /> (c) premiums for insurance required under garagraph.4. In any yeaz in which che Lender must pay a moccgage
<br /> insurance premium to the Secretary of Hnusing and Urban Development ("S�retary").or in any year in ahich su�h
<br /> premium would have been requireci if L.ender s[iil held the Security Instrument, each monthly payment sha�l also
<br /> include either: <i) a sum foi the amrual rnortgage insurance premium to be paid by Lxnder to the Secretary, or (ii} a
<br /> montbly charge instea@ of a mortgage insurance premium if this Security Instrumeni is held by the Secretary. in a
<br /> reasonable aroount to be determinec2 by the SecrPtary. Excep! for the month3y charge by the Secrecary. these items
<br /> are calle�t "Escrow ltems" and the sums paid to Ixnder are callec "Escrow Fune�s."
<br /> iender may,at any time, collect and hold anmunts for E�crow Itcros in aa aggregate amount not to exceed tne
<br /> mazimum a�nount that may be required for Borrower's �crow acceunt uader the Real Estate Settleiz�ent Procedures
<br /> Act of 1974,12 t3.S.C.§2601 et eg.and implemen.:ng regulations, 24 CFR Part 3500,as they may be amended from
<br /> time to time ("RESPA'),ezc`pt that t2�e cushion or reserve permitted by RESPA for una,�ticipated dis,�ursements or
<br /> disbursements bCfore the Borrowet'S payments are available in thc account may not be based on amounts due for the
<br /> IT10ri$2gC ina�ran,CC �LCiIIItIII�.
<br /> If the amounu heid by Lender for Escrow ltems ezceed the amounts permitted to be heid by RESPA, L,ender shall
<br /> account to Borrower for the excess funds as required by RESPA. If the amounu of funds heid by Lender at any dme
<br /> are not sufficie:it to pay the Escrew ttems when due. Lender may notify the Borrower and mquire Berrower to malce
<br /> u� li�e shortage zs permitted by RESPA.
<br /> 'Ihe Escrow Funds are pledged as additional securiry for all su�s secured by this Security Ins*cument. If Borrower
<br /> tenders to I,enri�r the full paymen: of all such s�umc, Borrower's account shall be credited with the balance remaining
<br /> ,or z;l install:nea: items (a), (5),and (c)and an;�mortgage insurance premium installment thai I.ender has not become
<br /> obligated to pay to the Secretary, and Lender shall p:omptiy refund any ezcess funds to Borrower. Immediately prior
<br /> to a foreclosare sale of the Property or its acquisition by Lender, Borrower's account shali be credited with any balance
<br /> rer.iaining :or ail instailments for items (a), (b), and (c).
<br /> 3. Application of Payme�ats. Ail paymencs under paragraphs I and 2 shall be applied by I.ender as follows:
<br /> FIRST, to the mortgage insuran:.e premium to be paid�y Lender to the Secretary er to the monthty charge by the
<br /> Secretary instead of the monthly mortgage insurance premium:
<br /> SECOND, to any tazes,special assessments, leasehold pa�rnents or ground rents, and fi:„flood and othcr Lazard
<br /> insurance premiums, as required;
<br /> THIRD, to inte*est due under the tiTote;
<br /> FOliRTEi, to amortization of the principal of the Note; and
<br /> FIFTH, to late charges due undez the Note.
<br /> 4. Fire, Flood and Other Hn7ard Insarance. Bormwer shall insure a�� �mpmvements ou :he Pronerty, u+hether
<br /> now in e�istence or subsequea�ly erected, against any hazards, casualties, and c4ntingencies, including fire,for which
<br /> Lende� requires insurance. This insurance s:ialt be maintained in the amounts and far L'�e periods that I.enda
<br /> re�uires. Bonower shall also insvr� alt improvements on the Property, whether now in ezistence or subs�quendy
<br /> erected, against loss by floods to the ezcen! required by the Secretary. All insu:ance shall be earrieci with companies
<br /> approved by Lendez. The i:.surance policies and any rrnewals sball be hetd by Lender and shali incl�de loss payable
<br /> clanses in favor of,and in a f�rm aeceptable to, Lender.
<br /> in the event of loas,Borrower shall give Lender immediaie notice by mail. I.ender may make proof of loss if not
<br /> made prompUy by Borrower. Each insurance company cuncerned is hereby authorized and directed to make payment
<br /> Y for such loss direcQy to Lender, instead of to Borr�wer and to Lender jointly. All or any part of the insurance
<br /> proceeds may be a�p�i�:.� uy Lender, at iu apuon, either (a) tc the reduction of the indebtedness under We Note and
<br /> this Security Instrument, fizst to any deluiquent aznour.ts agplied in the order in pa:agraph 3,and ther_ to pregayment
<br /> of principal, or (o) to thc restoration or repur of the damaged Property. Any application of the proceeds to the
<br /> principal shall not extend o: postpone the due date of the mor.:hly payments which are referred t� in paragraph 2,or
<br /> Y change the amount of such paymenu. Any ezcess insurance proceeds over an amount requirai to pay all outstanding
<br /> indebtedness urnaer the No:e anr� this Securiiy Instrument shall b� paid to the entity legaIly entitled thereto.
<br /> In the event of foreclosure of this Sxurity Instrumen� or other transfer of titIe to the Pmperty that eztinguishes
<br /> tt;e indebiec1ne55, alI right, tide and imerest of Borrower in and to insurance policies in force shall pass to the
<br /> purchaser.
<br /> 5. (�CCn�az+cy. Prese:vation. Maintcnarxx and Protoction o€ t� PmQerty: Borrower's L.oan Agplicxiioa;
<br /> I�Ids. Eorrower shall occupy,estat;li�h, and use the Property as Borrow�er's principal residrnce within siztydays
<br /> af:�* the e�ccu'.io*� of this Scctsrity instnzmen? (or within si.t.y days of a later sale or trznsfer of the Proper:y) and shall
<br /> consinue to ocnipy che Property as Rorrower's prineiPal residence for at least or,e year aftec the date of cxcupancy,
<br /> un':ess Ixndcr dMe>mines that rcquircment will cause undue hardship for F3c�rrower, or unless extenuating -
<br /> circumstances exist wh'sch arc beyond Bonower's cnntrol. Bonower shail notify Len�ier of dny eztenuat�ng
<br /> n�z;w�s3s,n•Yt►n DC.fiD OF TRiJST �
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