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<br />
<br />
<br /> (34- 144696
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<br /> payments, which are referred to in Paragraph 2, or change the amount of such payments. Any excess proceeds over an
<br /> amount required :o pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity
<br /> legally entitled thereto.
<br /> 8. Fees. 'Lender may coliect ices and charges authorized by the Secretary.
<br /> 9. Grounds for Acceleration of Debt.
<br /> (a) Default. Lender may, except as limited by regulations issued by the Secretary in the case of payment defaults,
<br /> require immediate payment in full of all sums secured by this Security Instrument if-
<br /> (i) Borrower default.-, by failing to pay in full any monthly payment required by this Security Instrument prior
<br /> to or on the due date of the next monthly payment. or
<br /> (ii) Borrower defaults by failing, for a period of thirty days, to perform any other obligations contained in this
<br /> Security Instrument.
<br /> (b) Sale "ithout Credit Approval. Lender shall, if permitted by applicable law and with the prior approval of the
<br /> Secretary, require immediate payment in full of all the sums secured by this Security Instrument if:
<br /> (i) All or part of the Property, or a beneficial interest in a trust owning all or part of the Property, is sold or
<br /> otherwise transferred (other than by devise or desmt) by the Borrower, and
<br /> (ii) Tie Property is not occupied by the purchaser or grantee as his or her principal residence, or the purchaser
<br /> or grantee does so occupy the Property but his or her credit has not been approved in accordance
<br /> with the requirements of the Secretary.
<br /> (c) No ` AE,er. If circumstances occur that would permit Lender to require immediate payment in full, but Lender
<br /> does not te(+;ui,.e Such payments, Lender does not waive its rights with respect to subsequent events.
<br /> (d) Regula to uq of HUD Secretary. In many circumstances regulations issued by the Secretary will limit Lender's
<br /> rights, in the cusr, of payment defaults, to require immediate payment in full and foreclose if not paid. This
<br /> Security Instrumrrit does not authorize acceleration or foreclosure if not permitted by regulations of the Secretary.
<br /> (e) Mortgage Not Insured. Borrower agrees that should this Security Instrument and the note secured thereby not
<br /> be eligible for insurance under the National Housing Act within B months from the
<br /> date hereof, Lender may, at its option and notwithstanding anything in Paragraphr require immediate payment in
<br /> full of all sums secured by this Security Instrument A written statement of any authorized agent of the Secretary
<br /> dated subsequent to 8 mon}}hs from the date hereof, declining to insure this Security
<br /> Instrument and the note secure ~tiereby, shall be deemed conclusive proof of such ineligibility. Notwithstanding
<br /> the foregoing, this option may not be exercised by Lender when the unavailability of insurance is solely due to
<br /> Lender's failure to remit a mortgage insurance premium to the Secretary.
<br /> lo. Reinstatement. Borrower has a right to be reinstated if Lender has required immediate pay-ent in full because
<br /> of Borrowers failure to pay an amount due under the -Note or this Security Instrument. This right app tics even after
<br /> foreclosure proceedings are instituted. To reinstate the Security Instrument, Borrower shall tender in a lump sum all
<br /> amounts required to bring Borrower's- account current including, to the extent they are obligations of Borrower under this
<br /> Security Instrument, foreclosure costs and reasonable and customary attorneys' fees and expenses properly associated with
<br /> the foreclosure proceeding. Upon reinstatement by Borrower, this Security Instrument and the obligations that it secures
<br /> shall remain in effect as if Lender had not required immediate payment in full. However, Lender is not required to permit
<br /> reinstatement if: (i) Lender has accepted reinstatement after the commencement of foreclosure proceedings within two
<br /> year, ;-nmcdiately preceding the commencement of a current foreclosure proceeding, (ii) reinstatement will preclude
<br /> forer s:lire on different gmunds in the future, or (iii) reinstatement will adversely affect the priority of the lien created by
<br /> this' uiw losaumeni.
<br /> iormwer Not Released; Forbearance by Lender Not a Waiver. Extension of the time of payment or
<br /> modification if amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest
<br /> of Borrower shall not operate to release the liability of the original Borrower or Borrower's successor in interest. Lender
<br /> shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or
<br /> otherwise ma(iify mortization of the sums secured by this Security Instrument by reason of any demand made by the
<br /> original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy shall
<br /> not be a waiver of or preclude the exercise of any right or remedy.
<br /> 12. Successors and Assigns Bound; Joint and Several Liability; Co-Signers, Tlic covenants and agreements of
<br /> this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions
<br /> of Paragraph 9.b. Borrowers covenants and agreements shall be joint and several. Any Borrower who co-signs this
<br /> Security Instrument but does not execute the Note: (a) is co-signing this Security instrument only to mortgage, grant and
<br /> convey that Borrowers interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to
<br /> pay the wens secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend.
<br /> modify, forticar or.-aa ce any accommodations with regard to the terms of this Security Instrument or the Note without that
<br /> Borrower's consent-
<br /> 13. Notices. Any notice to Borrower provided for in this Security Instniment shall be given by delivering it or by
<br /> mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the
<br /> Property Address or any oilier address Borrower designates by notice to Lender. Any notice to Lender shall be given by
<br /> first class mail to bender's address stated herein or any address Lender designates by notice to Borrower. Any notice
<br /> provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided
<br /> in this paragraph.
<br /> 14. Governing Law; Severability. This Security Instrument shall be governed by Federal law and the law of the
<br /> jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the
<br /> Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note
<br /> which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the
<br /> Note are declared to, be severable.
<br /> 15. Borrower's Copy. Borrower shall be given one conformed copy of this Security Instrument.
<br /> 16. Assignment of Rents. Borrower unconditionally assigns and transfers to Lender all the rents and revenues of the
<br /> Property. Borrower vu.thorizes Lender or Lenders agents to collect the rents and revenues and hereby directs each tertRrrt of
<br /> the Property to pay the rents to Lender or Lenders agents. However, prior to Lender's notice to Borrower of Borrower's
<br /> breach of any covenant or agreement in the Security Instrument, Borrower shall collect and receive all rents and revenues of
<br /> the Property as, trustee for the benefit of Lender and Borrower. This assignment of rents constitutes an absolute assignment
<br /> and not an assignment for additional security only.
<br /> If Lender gives notice of breach to Borrower. (a) all rents received by Borrower shall be held by Borrower as trustee
<br /> for benefit of Lender only, to be applied to the sums secured by the Security Instrument, (b) Lender shall be entitled to
<br /> collect and receive all of the rents of the Property; and (c) each tenant of the Property shall pay all rents due and unpaid to
<br /> Lender or Ixrider's agent on Lenders written demand to the tenant.
<br /> Ube-rower has not rxecutcd any prior assignment of the rents and has not and will not perform any ac: that would
<br /> pre.m-trit Lender from exercising its rights under this Paragraph 16.
<br /> Lender shall not be required to enter upon, take control of or maintain the Property before or after giving notice of
<br /> brea,-.h to Borrower. However, Lender or a judicially appointed receiver may do so at any time there is a breach. Any
<br /> appRation of rents shall not cure or waive any default or invalidate any other right or remedy of Lender. This assignment
<br /> of rents of the Property shall terminate when the debt secured by the Security Instrument is paid in full.
<br /> (page 3 -f4 pager)
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