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<br /> 1. Pwymane aP Petncipal,Interest and Late C�Arge. 8arrowcr xhnl!pay when duo 1ho}�rincipst of.nnd intcrrst on. .
<br /> tho debt evIclenc�:d by thc Note und lata churgcs due under the Note.
<br /> �. MonR61y payments of'tllxea,Insurpnce and Other Chae�es. Bormwer ahall inclu�le in each monthix prymcnt,
<br /> together with the principal and interest as �et forth in tha Nate and any Intc ch�rges,an instatiment of any(R)tnxea and ,
<br /> Rpoci�l assessments lovied or to be leviui agdnst the Prapeny.(b)leasehold paymen�;ar graund ronta on the Roperty�end
<br /> (c)pnmiums for inaurence reqoired by Paragraph 4.
<br /> Euh monthiy installmcnt for ftems (a), ib) nnd (c) ahall eyen! one-twelfih of tho annuai umoants. as reasonably
<br /> eatlmated by Lender. plua en amount Rufticieni ta maintain an additional balance of nat more than onastxth of the
<br /> � esamuted amaunts. The full annual amount for eACh ltcro shali be accumulated by l�ender wishin a period Cndi one
<br /> � month txfore an item�vould become delinquent. Lender shnll hold the amaunte collected in uvst to pay itema(n),(b�and
<br /> � (c)bcfore they become delinqucnt.
<br /> i If nt any ame the totnl of the puymenta held by Lender for Items(a),(b)and(c).together wlth the future monthly
<br /> � paymenta for such items payable to Lender prior to the due dntes of Such items.exceeds by mnre thar�one-slxth the
<br /> ! estimated amount af payments required to pay such itemA when due,and lf puymenGg on the Note are curren�then Lender
<br /> ; shall either refund the excess over one-sixth ot the estimated payments or credit thc excess over one-sixth of the esdmaud
<br /> payments to aubsequent paymenta by Borrower.et tha option of Borrower. If the totnl of the puyments mude by Borrower
<br /> � l�or item(u).(b).or(c)is insufficIent to pay the item when due,then BarrowBr shell pay to Lender any amount aecessAry to
<br /> � make up the deficIency an or before the date the item becomes due.
<br /> � As used in this Secunty Inswment,"Sec�+etary"means the Secretary of Housins and Urbun Development or his or her
<br /> I designee. In any year in which the Lender must pay a mortgage insurance premium to the Secretary,es►ch monthly payment
<br /> � shall alsa include elther. (i) an instaUment of the c+nnuflt mortgage insurance premlum to be paid by Lender to the
<br /> Secmt�y,or(ij)a monthly chazge inatead of a mortgage insurance premium if this Se�urity Instmment Ia held.by the
<br /> I Secretary. Ench monWly instaUment of the mongage insuraiece premium shali be in en amount su�cient w axumultue the
<br /> i fuU annual mortgage inaurance premlum with� Lender one month pnor to the date the full anuw�l mortgage insurattce
<br /> ,�;,, . w p:emium is due to the Secretary;or if this Serurity Inswment is held by the 5ecretary,each monttily char$e shall be In an
<br /> amount equal to ane•twelfth of one-half pen�nt af the autstanding principal balance due on the Note.
<br /> If Eorrawer tenders to Lender the full paymem af all sums secured by this Seciuity Insmiment,Barrower�eccount
<br /> 7' " ff,i,�;:;�;'. • shull be credited with the balance remaining for all installments for items(a), (b)and(c)and any mortgage insurance
<br /> ��-�� premium inatallinent that L.ender has nat became obligated to pay to dse Secretary,and Lender shall prampdy rofund un
<br /> '�;4° �'}�:!•.,•. excess funds[o Bonowor. immediutely prior to a foreclosure sale of the Properry or its acquisirian by I.ender.Borrower�
<br /> .f���.` �'�• � account shall be credited with any balance remaining for sll installments for items(a),(b)and(c).
<br /> "'�" �j�.ti.�r•' 3. Appllcation of Playments. AU payments under Porngraphs 1 und 2 shall be npplied by Lender as foUows:
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<br /> •w,,y,,,l;;ti,.,. FIRST,to the mortgage insurance premium to be paid by Lender to tha Secretary or to the monthly charge by the
<br /> �•,d��':�" •',�:. �••'. Secre instead of the monthly mortgage insurance preminm:
<br /> �'°?j t'-t�:=:''�•'� '� �. ���to sny taxes.specfal assessments�leusehold payments or ground rents.and fire.flood and other hsiza�d
<br /> 1 . � �E�-.r.q�c�'�: IQSUleJlC6(11+CRI�UI119�8Sf�QUIICd�
<br /> �' �±:�;':: :: �•?.�� , �,to interest due under the Note;
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<br /> ..,zrt,,`.±u,' � �Q1J�,to amortizatior of the principal of the Note;
<br /> `�:'��'-• • �� �• � � ro late churges due under the Note.
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<br /> a :�.a:. 4. Fi�e,Flood and Other Neasrd Insurence. Borrower shnll insum nli lmprovements on the Pc�operty.whether nuw
<br /> '���� � � in existence or subsequently erected.a ainst uny huuudv,cusuulties.and contingencie�,including fire.for which Lsnder
<br /> `�"'•r• � ' �. [eyuices fneutattce. 'R�is inxumnre shal�be muintained in the umount�und for the perlods thut i.ender rcquirca. Borrower
<br /> .. �� ' Y.,:.' �h�, xhatl nlfio insure ull improvementR on the Property,whether now in existence ar subsequently erectecl,ttgwnst loss by floode
<br /> `� � ��� � to the extent required by the Secretury All insurance shall be currled with campnniew upproved by Lend-r. The insurance
<br /> �;r w „�, „� �, policics and any renewula shalt be hcld by L.cnder und shuQ include loss puynble cinuses in fnvor of. nnd in u form ;�
<br /> ;-.,�, . .. : accepwble to.Lender.
<br /> In the event of loxs,Borrower shall give l.ender immedinte notko by mniL Lender may muke prouf of loss jf not ,;^:�
<br /> :n':s,,. ' � mude promptly by Barrower. Each insur�nce compnny concemed is hereby uuthorized and directed to make pnyment for . -�
<br /> ';'''��'�' � '`°`�� such losx directly to Lender.instead of to Borrower and to Lendsr jointly. All or any pa�t of the tnsurance proceeds may be '� '
<br /> ti�� _,-. ti , �-��:
<br /> :___„.... , epplied by L.ender,ut its option,either(a)to the reduction of the indebtedness under the Note nnd this Secudty Instrument, 4'�•
<br /> •, ��� Rrst W any dellnquent amounts applied in the order in Paragraph 3, and then to prozpayment of pr�ncipal,or(b) to the
<br /> ':-';'�� : , , �estoratFon or repalr of the dmm�ged pr�perty. Any applicution of the praceeds to the principal sh�ll not extend ar postpone
<br /> the due dates of the monthly payrnents which ure referrect to in I'aragraph 2,or chang�the amount of such payments. My �
<br /> .:r' .. eacess insurance proceeds over un umount required to pay alt outstanding indebtedness under the Note and this Security
<br /> Insuument sholl be ps+id to the entity legally entttled thereto.
<br /> , ' •� , In the event of foreclosure of this Secur�ry Inswment or other uansfer of title to the Property that extinguiehes the
<br /> ^_�.,.. indebtedness,ull ri�ht,dde and interest of Borrower in and to insurnnce policies in fon:e shall pass to the purchaser.
<br /> S. Occupancy, Preservetion, Maintenance and Protection of the Propertyt Borrower's Loan Applicetion;
<br /> •• � 1.essehold�. Borrower shall accupy.establish,:utd use thc Property as Borrower's pnncipal msidence within sixty days
<br /> ;:,,,�s �� atter the executton of this Security Insaumnne and shull continue to occupy the PropeKy us Bornower's pdncipal residence
<br /> �; . for at least one yesirr nfter the date of occupancy,unless the Secretary determines this requirement wlll cause undue hardship
<br /> `�'� for Borrower. or unless extenuuting circu�stances exist which ure beyond Borrower's control. Borrower shall notify
<br /> ' ; � Lenders of nny extenuAting circumstances. Borrower shnll not commit waste or desaoy,dnmage or substantially chnnge
<br /> „ ' ' the Property or aliow the Property to deteriorste,rensonuble wear and teur excepted. Lender may inspect the Property if the
<br /> a Property{s vacant or abandoned or the loan is in default. Lender muy take reasonuble action to protect and preserve such
<br /> vncant or abandoned Property. Borrower nhaq ulso be in defuult tf Borrower,during the loan applicution process,save
<br /> � �� muterially false or inuccurate informntion or stntamcnts to L.ender (or failed to provide Lender with uny mutedrst
<br /> - informadon)in connection with tha loun evidenced by tha Note, including.but not Itmited to,representations wnceming
<br /> ' Borrower�s occupuncy af the Nroparty as a principal residenca. If this Security Insuvment is on n leasehold,Borrower shnll
<br /> comply with the provisions of tha lense. If Borrower acyuires fee title to the Property,the leusehold und fee titic shnll not
<br /> ' be merged unless Lender agmes to thc merger in wtitin�.
<br /> . � 6. C�es to Borrower and Protectton of Lender's Rights in the Property. Borrower shall pay all govemmentnl
<br /> • or municipal c arges,finos and imposidons that are not included in Plsragraph 2. Borrower shnll pay these obligations on
<br /> . � ' dme directly to the enttty which is owed the paymettt. If failure to pay woutd ndversely affert Lenderc interest in the
<br /> ° � Property,upon Lender's request Borrower shali promptly fumish to Lender mccipts cvidcncing these pnyment�.
<br /> tf Borrower faits to make these navmants or the auvments rectuired by I�rugraph 2,or fnils to perfomn uny other
<br /> • - • • covenants attd agmeemonts contnined in this Security Insfruinent,or there is u legal proceeding thnt may stgnmcan�iy nttec�
<br /> Lender�dghts in tli�Property(such as a proceeding in bankruptcy.for condemnetton or to enforce luws or reguladorts),
<br /> . then Lender muy do and pay whatever is necessary to protect the value of the Property and Lender's rights in the Property,
<br /> • . �• irtaluding payment of taxes.hazard insurunce nnd other items mentioned in Paragru�h 2.
<br /> Any amounts dtsbursed by Lender under thisPurngraph shall become an udditionul debt of Borrower and be secured
<br /> by thie Securiry inswmant These amounts shall bear interest from the date of disbursement.at the Note rnte.und at the
<br /> „ option of Lender.shali b�immediately due and pnynble. °
<br /> . " 7. Con�emnation. The proceeds of any award or claim for damages,direct or consequential,in connection with eny
<br /> condemnation or other taking of uny part of ttie Property,or for cnnveyance in place of condemnation,ure hereby assi�ned
<br /> ' nnd shatl @e paid to Lender to the extent of the full amount of the indeGtedness that remains unpaid uader the Note and this
<br /> � ;:;1;j�� , , Security Inswment. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security
<br /> ' Insuument. fir�t to any delinquent amounts appiied in the order provided in Paragraph 3. and then to prepsyment of `
<br /> ��,,+, principnl. My applicution of the proceeds to the principal shnll nnt extend or postpone the due date of the monthty k
<br /> � ,. , (page 2 oj4 peResJ
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