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200200853 LOAN 0: 7132862
<br />TOGETHER WITH all the improvements now orhercafter erected on the property, and all casements, appy rlcrancesandfixmres
<br />now or hereafter apart of the property. All replacements and additions shall also be covered by this Security Instrument. All of the
<br />foregoing is referred to in this Security Instrument as the "Property."
<br />BORROWER COVENANTS that Borrower is lawfully seized ofthe estate hereby conveyed and has the rightto grant andconvey
<br />the Property and that the Property is unencumbered, except for encumbrances ofreeord. Borrower warrants and will defend generally
<br />the title to the Property against all claims and demands, subject to any encumbrances of record.
<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and non - uniform covenants with limited
<br />variations by jurisdiction to constitute a uniform security instrument covering real property .
<br />Borrower and Lender covenant and agree as follows'.
<br />UNIFORM COVENANTS,
<br />1. Payment of Principal, Interest and Late Charge. Borrower shall pay when due the principal of, and interest on, the debt
<br />evidenced by the Note and late charges due under the Note.
<br />2. Monthly Payment of Taxes, Insurance and Other Charges. Borrower shall include in each monthly payment, together with
<br />the principal and interest as setforth in the Note and any late charges, a sumfor (a) lazes and special assessments levied or to be levied
<br />against the Property, (b) leasehold payments or ground rents on the Property, and (c)premiums for insurance required underparagraph
<br />4. In any year in which the Lender must pay a mortgage insurance premium to the Secretary of Housing and Urban Development
<br />( "Secretary"), or in any year in which such premium would have been required if Lender still held the Security Instrument, each
<br />monthly payment shall also include either: (i) a sum for thcammal mortgage insuranceprermumtobe paidby Leader to the Secretary,
<br />or (Il) a monthly charge instead of a mortgage insurance premium ifthis Security Instrument is heldby the Secretary, in a reasonable
<br />amount to be determined by the Secretary. Except for the monthly charge by the Secretary, these items are called "Escrow Items"
<br />and the sums paid to Lender are called "Escrow Funds."
<br />Lender may, at any time, collect and hold amounts for Escrow Items in an aggregate amount not to exceed the maximum amount
<br />that maybe requiredfor Borrower's escrowaccount underthe Real Estate Settlement Procedures Act of 1974,12 U.S.C. Section 2601
<br />et seq. and implementing regulations, 24 CFR Part 3500, as they may be amended frorn time to time ( "RESPA "), except that the
<br />cushion or reserve permitted by RESPA for unanticipated disbursements or disbursements before the Borrower's payments are
<br />available in the account may not be based on amounts due for the mortgage insurance premium.
<br />If the amounts held by Lender for Escrow Items exceed the amounts permitted to be held by RESPA, Lender shall account to
<br />Borrower for the excess funds as required by RESPA. Tribe amounts of funds held by Lender at anytime is not sufficient to pay the
<br />Escrow hems when due, Lender may notify the Borrower and require Borrower to [Hake up the shortage as permitted by RESPA.
<br />The Escrow Funds are pledged as additional security for all sums secured by this Security Instrument, If Borrower tenders to
<br />Lender the full payment mall such sums, Borrower's account shall be credited with thelimance remaining for all installment items
<br />(a), (b), and (c) and any mortgage insurance premium installment that Lender has not become obligated to pay to the Secretary, and
<br />Lender shall promptly refund any excess funds to Borrower. Immediately prior to a foreclosure sale ofthe Property or its acquisition
<br />by Lender, Borrower's account shall be credited with any balance renaining for all installments for items (a), (b), and (c).
<br />3. Application of Payments. All payments under paragraphs 1 and 2 shall be applied by Lender as follows:
<br />First, to the mortgage insurance premium tube paidby Lender to the Secretary or to the monthly charge by the Secretary instead
<br />ofthe monthly mortgage insurance premium;
<br />Second , to any [axes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance
<br />premiums, as required,
<br />"third , to interest due under the Note;
<br />Fourth , to amortization of the principal of the Note; and
<br />Fifth , to late charges due under the Note,
<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whethernow inexistence
<br />m subsequently erected, against any hazards, casualties, and contingencies, including fire, forwhich Lender requires insurance. This
<br />insurance shall be maintained in the arnounts and for the periods that Lender requires. Borrower shall also insure all improvements
<br />on the Property, whether now in existence or subsequently erected, against loss by floods to the extent required by the Secretary . All
<br />insurance shall be carried with companies approved by Lender. The insurance policies and any renewals shall be heldby lender and
<br />shall include loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made promptly
<br />by Borrower. F.ach insurance company concerned is hereby authorized and directed to make payment for such loss directly to Lender,
<br />instead of to Borrower and to Lenderjointly. All or any part ofthe insurance proceeds may be applied by Lender, at its option, either
<br />(a) to lire reduction of the indebtedness under the Note and this Security lasnument, first to any delinquent amounts applied in the
<br />order in paragraph 3, and then to prepayment ofprincipal, or (b) to the restoration or repair ofthe damaged Property. Any application
<br />ofthe proceeds to the principal shall not extend or postpone the due date of the monthly payments which are referred to in paragraph
<br />2, or change the amount ofsuch payment s. Any excess u suranceproceedsoveranamount required to pay all outstanding indebtedness
<br />under the Note and this Security Instrument shall be paid to lire entity legally entitled thereto.
<br />In the event offoreclosum of this Security Instrument or other transfer of tide to the Property that extinguishes the indebtedness,
<br />all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />5. occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds.
<br />Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution ofthis
<br />Security Instrumea (or within sixty days of a later sale or transfer of the Property) and shall continue to occupy the Property as
<br />Borrower's principal residence for at least one year after the date ofoccupancy, unless Lender determines that requirement will cause
<br />undue hardship for Borrower, or unless extenuating circumstances exist which are beyond B'orrower's control. Borrower shall notify
<br />Lender of any extenuating circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Property
<br />or allow the Property to deteriorate, reasonable wear and tear excepted- Lender may inspect the Property ifthe Property is vacant or
<br />abandoned or the loan is in default. Lender may take reasonable action to protect and preserve such vacant or abandoned Property.
<br />Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information
<br />or statements to Lender (or failed to providcLender with any material information) ineonnectionwith the loan evidenced by the Note,
<br />including, but not linumilto, representations concerningBorrower's oceupancyoftheProperty as aprineipalresideucc. ifthis Security
<br />Instrument is on a leasehold, Borrower shall comply with the provisions of due lease. If Borrower acquires fee title to the Property,
<br />the leasehold and fee title shall not be merged unless Lender agrees to the merger in writing.
<br />6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br />condcmmation or other taking of any pan of the Property, or for conveyance in place of condemnation, are hereby assignedll
<br />FIIA rvesrs..w n.ed of Trost - 4ms Initials :
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