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200203399
<br />ci:cwns;att: Borro•.ver Shall not commit waste or des ioy, damage car :ul,stantially change the Property or allow the
<br />Prop,, -ny !o de'eriorat reasonable wear and tear excepted. Lender may inspect the Property if the Property is vacant
<br />or abandoned or titc loan is in default- Lender may take reasonable action to protect and preserve such vacant or
<br />abandoned Prot± -rtv. Borrower shall also b- in default if Borrower, dart ; :4 the loan application process. cave materially
<br />false or inaccura ;c information or statements to L endcr for failed 'o provide Lender with any, material info -nation)
<br />in connection with Lie loan evidenced bythe Note, including. but not iia tcd to, representations conreining Borrower's
<br />occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply
<br />wit the provisions of the lease. if Borrower acquires fee title to the Prope-y, the : easehold and fee title shall not
<br />be mn:,&c� unless Lender agrcies to the merger in writing.
<br />b. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with
<br />any condemnation or other taking of any part of the Property, or for conveyance in place of condemnation,, are hereby
<br />assigned and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under
<br />the N'ote and this Security Instrument. Leader shall apply such proceeds to the reduction of the indebtedness :under
<br />the Note and this Security Instrument, first to any delinquent arrtourts applied in the order provided in paragraph 3,
<br />and then to prepayment of principal. Any application of the proceeds to the principal shall not extend or postpone
<br />the due date of the monthly payments, which are referred to in paragraph 2, or change the amount of such payments.
<br />Any excess proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security
<br />Instnlmcnt shrdl be paid to the entity legally entitled thereto.
<br />7.
<br />Charges to Borrower and Protection of L.,ettder's Rights in the Property. Borrower shall pay all governmental
<br />or Mlli;lciPa7 charges, ftnus anti impositions that are not included in paragraph 2. Borrower shall pay' these obligations
<br />011 timc ;izrec ly to the entity which is owed the payment. If failure to pay would adversely affect Lender's interest in
<br />the F•roperty, urx)n Lender's request Borrower shall promptly furnish to Lender receipts evidencing these payments.
<br />if Borre• -v'er fail= to make these payments or the payments required by paragraph 2, or fails to perform any other
<br />ccvenuL -iis and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly
<br />affect Lender's rights in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property, including payment of taxes, hazard insurance and other items mentioned in paragraph 2.
<br />Any amounts disbursed by Lender under this paragraph shall become an additional debt of Borrower and be
<br />soured by 'his Security Instrument, These amounts shall bear interest from the date of disbursement at the Note rate,
<br />and at the option of Lender shall be immediately due and payable.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in •vr,ang to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests
<br />in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion
<br />operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory
<br />to Lundcr subordinating the lien to this Security Instrument. if Linder. determines that any part of the Property is
<br />subject to a lien IOich may attain priority over this Security Instrument, Lender may give Borrower a notice: identifying
<br />the iien. Borrower shall satisfy the lien or take one or mt,re of the actions set forth above within 10 days of the giving
<br />• F. `f Fees. LL.,de. rnav zo ",,'ct tees and cha7g S ati ;h07lZe! by -he
<br />9. Grounds for Acceleration of Dcbt.
<br />(a) Default. Lender may, except as limited by regulations issued by the Secretary in the case of payment
<br />defaults, require immediate payment in full of all sums secured by this Security Instrument if:
<br />(i} Borrower defaults bv failing to pay in full any monthly payment required by this Security Instrument
<br />prii,r to or on the due date of the next monthly payment, or
<br />(.io forrower defaults by failing, for a period of thirty days, to perform any other obligations contained
<br />in This -security lnstrtinlent-
<br />(b) Sale Without Credit Approval_ Lender shall. if izermitted by applicable lacy ( including section 34l(d) of
<br />zhc Gan; -St- Germain Depository institutions Act of 1982, i2 U.S.C. 1'01j - 3(d)) and n•i!h the prior approval
<br />of the Secretary, require immediate payment in ful! of all sums secured by this Security Instrument if:
<br />(i) All or part of the Property, or a beneficial interest in it trust owning all or part of the Property, is so:d
<br />or otherwise transferred (other than by devise or descent), and
<br />(ii) `Ilse Property is not occupied by the purchaser or grantee as his or her principal residence, or they
<br />purchaser or grantee does so occupy the Property, but his or her credit has not been approved in
<br />accordance with the requirements of the Secretary.
<br />(c) No Waiver. If circumstances occur that would permit Lender to require immediate pay'tllent in full, but
<br />Lender does not require such payments, Lender does not waive its rights with respect to subsequent events.
<br />(d) ltcolations of HUD Secretary. In many circumstances regulations issued by the Secretary will limit
<br />Lender's rights, in the case of payment defaults, to require immediate payment in full and foreclose if not paid,
<br />This Security instrument does not authorize acceleration or forcclosture if not permitted by regulations of the
<br />Secretary.
<br />(c) Mortgage Not Insured. Borrower agrees that if this Security Instrutncnt and the Note are not determined
<br />v) be ehOhlc for insurance under the National Housing Act within 60 DAYS from the
<br />date hereof, i.endrr may. at its option require ntuned1:I1e paynle•nt in full of all s+ults secured by this Security
<br />ln,;runlent. A written statement of any aulhorizcd ogent tit Ctc S,- crvfary (!;lie([ suhscyurn( to
<br />frrr't the tape lwrwt, tlef :l fwil,.. to insure this Stculky Inrtrinncnt mid the Note, shall he
<br />�.iCrlt7eel (:om1ww"k' prlN11 0l tiUt ;1 lllt`llj ;ll?Iltty. Nnllt t(IltiLlndlll�„ IIII' fIIICCI'Inl', thls 1fp1111n ill;ly not he CXeI'I ItiC'll
<br />Lundcr whets the unavadlabihty tit insurance r, cnlekl dot: to Lend(r's failure to remit a mortgage insurance
<br />iucnutnrt 11) the SCI. ckll.�
<br />NI11KANKA F11A DVIi) ON'I' IYU e096
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