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<br /> 938WREjjjjW3
<br /> 11016?r
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<br /> x. Payment of Principal. Interest and late Charge. Borrowc;r• dial( pay when due the principal uG, and interest on,
<br /> the debt evidenced by th.- Note and late charges due under the Note.
<br /> 2. Monthly pa; means of Taxes, Insurance and Outer Charges. Borrower shall include in each monthly payment.
<br /> together with the pritwipa; and interest as set forth in the Note and -?ay late. charges, an installment of any (a) taxes surd
<br /> special assessments levied cr in be levied against the Property. (b) kaschold payments or ground rents on the Property, and
<br /> (c) prc^mium for insurance required by Paragraph 4.
<br /> Each monthly ins,,,211 tent for items (a), (b) and (c) shalt equal one-twelfth of the annual amounts, its reasonably
<br /> estimated by Lender, plus art. amount sufficient to naainta.i,t an additional balance of not more than one-sixth of the
<br /> estimated tunounts. The fill! annual anlourtt for each item shall be accumulated by Lender within a period ending one
<br /> month b2 core an item would become delinquent. Lender shall hold the amounts collected in trust to pay items (a), (b) and
<br /> (c) before they become delinquent,
<br /> If at any time the total of the oaynicnts held by Lender for items (a), (b) and (c), together with dic future monthly
<br /> payments for such items payable to Lender pt-or to the due dates of such items, exceeds by mop:. than one-sixth the
<br /> estimated mrtnunt Of payments requin-d to pay such items when due, and if payments on the Note are current, then Lender
<br /> shall either refund the excess over one-sixth of the c.:timated payments or credit the excess over one-sixth of the estimated
<br /> payments to subsequent payments by Borrower, at the :option of Borrower. If the total of the payments made by Borrower
<br /> for item (a), (h). or (c) is insufficient to ply the item when due, then Borrower shall pay to Lender any amount necessary to
<br /> makeup the deficiency on or before the date the item becoiwM due.
<br /> As used in this Security Instrument, ";secretary" means the. Secretary of Housing and Urban Development or his or tier
<br /> designee. In any year in which the Lender trust pay t< mortgage insurance premium to the Secretary, each monthly payment
<br /> shall also include either: (i) an installment of the annual mortgage insurance premium to be paid by Lender to the
<br /> Secretary, or (ii) a monthly charge instead of a mortgage insuranct premium if this Security Instrument is held by the
<br /> Secretary. Each monthly installment of the mortgage insurance premium, shall be in an amount sufficient to accumulate the
<br /> felt annual mortgage insurnnr.e premium with Lender one month prior to the date the full annual mortgage insurance
<br /> premium is due to the Secretr y; or if this Security Instrument is held by the Secretary, each monthly charge shall be In an
<br /> amount cq;tal to one-twe!fth of one-half percent of the outstanding principal bai.Ance due on the Note.
<br /> If Borrower tenders to Gender the full payment of all sums secured by this Security Instrument, Borrowers account
<br /> shall be credited with the balance remaining for all installments for items (a), (L) and (c) and any mortgage insurance
<br /> prennuin installment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any
<br /> excess funds to Borro++cn Immediately prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's
<br /> account shall be credited with any ba!sncc remaining for all installments for items (a), (b) and (c).
<br /> 3. Application of Payments. Ail tayment~ under Paragraphs ! and 2 shall be applied by Lender as follows:
<br /> FIRS-[ ; to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the
<br /> Secretan• instead of the monthly mortgage insurance premium:
<br /> SCE CQNi b, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard
<br /> insurance premiums, as required;
<br /> THIRD, to interest due under the Note:
<br /> E i •RTH, to amortization of the principal of the Note;
<br /> FII"TH, to late charges due under the Nate.
<br /> 4. Fire. Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether now
<br /> in existence or subsequently crected, against any hazards, casualties, and contingencies, including fire, for which Lender
<br /> requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower
<br /> shall also insure all improvements on the Property, whether now in existence or subsequently erected. against loss by floods
<br /> to the exrent required by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance
<br /> policies and any renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form
<br /> acceptable to, Lender.
<br /> In the event of loss. Borrower shall give Leader immediate notice by mall. Lender may make proof of loss if not
<br /> made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for
<br /> such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may be
<br /> ;applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security Instrument,
<br /> TO at-IN, drlinnrrent amounts applied in the order in Paragraph 3, and then to prepayment of principal, or (b) to the
<br /> restoration rr repair of the damaged property. Any application of the proceeds to the principal shall not extend or postpone
<br /> the due date of th; monthly payments which are referred to in Paragraph 2, or change the amount of such payments. Any
<br /> excess insurance proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security
<br /> lnstnirl; r.', shall be paid to the entity legally entitled thereto.
<br /> Ill the event of foreclosure d this Security Instrument or other transfer of title to the Property (hat extinguishes the
<br /> indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser,
<br /> S. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br /> Leaseholds. Borrower shall occupy. establish, and use the Property as Borrower's principal residence within sixty days
<br /> after the execution of this Security lnstnument and shall continue to occupy the Property as Borrowers principal residence
<br /> for at least one year after the date of occupancy, unles the Secretary dctennines this requirement will cause undue hardship
<br /> for Borrower, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall notify
<br /> Lenders of any extenuating circumstances. Borrower shall not commit waste or destroy, damage or substantially change
<br /> time Property or alloy the Property to deteriorate. reasonable wear and tear excepted. Lender may inspect the Property if the
<br /> !'roperty is vacant or abandoned or he loan is in default. Lender may take reasonable action to protect and preserve such
<br /> vacant or abandoned Property. Borrower shall also be in default if Borrower, during the loan application process, gave
<br /> rna!erially false or inaccurate information or statements to Lender (or failed to provide Lender with any material
<br /> i r l fly rrmation) in connection with the roan evidenced by the Note, including, but not limited to, representations concerning
<br /> Borrowers c,~ "upancy of the Property as a arincipal residence. If this Security Instrument is on a leasehold, Borrower shall
<br /> comply v:ith time I'm"'isions of the lease. If Borrower acquires fee title io the Property, the leasehold and fee title shall not
<br /> be r,:crged unless Lender agrees to the merger in wtiiing.
<br /> 6. Charges to Borrower and Protection of Lender's Rihhts in the Property. Borrower shall pay all governmental
<br /> or mu•ticipal charges, ones and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on
<br /> time (IM.,ctly to the entity which is owed the payment, If failure to pay would adversely affect Lender's interest in the
<br /> Property, upon Lender's reque,t BorrwAer shall promptly furnish :o Lender receipts evidencing these payments.
<br /> If Borrower fails to make these payments or the payments required by Paragraph 2, or fails to perform any other
<br /> covenants and anreernews contained in this Security Instrument, or there is a legal proceeding, that may signi5cantly affect
<br /> Fender's ri-his in the Property (such as a. proceeding in bankruptcy, for condemnation or to enforce laws or regulations),
<br /> then I ender may cto and pay whatever is r.•ccessary to protect the value of the Property and Lender's rights in the Property.
<br /> including payment of taxes, hazard insurance and other items mentioned in Paragraph 2.
<br /> :env amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrower and be secured
<br /> by this Security Insirurnew, These anao,ants shall bear interest from the date of disbursement, at the Note rate, and at the
<br /> option of Lender, shall he immediately due and payable.
<br /> 7, Conderripation. 'r-he proceeds of any award or claim for damages, direct or consequential, in connection with any
<br /> cnndemn:aic>n or odlor takinc of any part of the Prop erts, or for conveva rice in place of condemnation, are hereby assigned
<br /> ar:~' ,i;afl t 'e ; er'sd to Lender to il,e extent of the lull amount of the indebtedness that remains unpaid under the Note and this
<br /> Security ln,tr utter;- Len er ,lu!i :apple ,uch prnceed, to the reduction of the indebtedness under the Note and this Security
<br /> lint 10 :uty delinutr;nt anuwnts :!Pp';ied in the order prosic:ed in Paragraph 3, and then to prepayment of
<br /> ti rip ;!r:al. Any prer:eea, to the principal sha;l nog extend or postpone the due date of the monthly
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