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200206013
<br />In the event rf foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the
<br />indebtedness, all right, title and interest of Borrower in and m insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's- Loan Application;
<br />Leaseholds. Burrower shall occupy, establish, and use the Property as Borrower principal residence within sixty days after
<br />the execution of this Secunty Instrument and shall continue to occupy the Property as Borrower's principal residence for at
<br />least one year after the date of occupancy, unless the Secretary determines this requirement will cause undue hardship for
<br />Borrower, or unless attenuating circumstances exist which are beyond Borrower's control. Borrower shall notify Lenders of
<br />any extenuating circumstances. Burrow shall not commit waste or destroy, damage or substantially change the Property or
<br />allow the Property to deteriorate, reasonable well and tear excepted- Lender Tony inspect the Property if the Property is vacant
<br />or abandoned or the lean is in default. Lender may take reasonable action to protect and preserve such vacant or abandoned
<br />Property. Borrower shall also be in default it Borrower, during the loan application process, gave materially false or inaccurate
<br />information or statements to Lender (or failed to provide Lender with any material information) in connection with tire loan
<br />evidenced by the Note, including, but not limited m, representations concerning Borrower's occupancy of the Property as a
<br />principal residence, If this Security Instrument is on a leasehold, Burrower shall comply with all the provisions of the tease. If
<br />Borrower acquires fee title to the Property, tite leasehold and fee title shall nut be merged unless Lender agrees to the merger in
<br />writing.
<br />6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br />candomnatiun or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned and
<br />shall be paid to fender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this
<br />Seem Ity Instrument, fender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security
<br />Instrument, fast to any delinquent amounts applied in the order provided in paragraph 3, and then to prepayment of principal.
<br />Any application of the pa creeds to the principal shall not extend or postpone the due dune of the monthly payments, which are
<br />referred to in paragraph 2, or change the amount of such payments. Any excess proceeds over an amount required to pay all
<br />outstanding indebtedness under the Note and this Security Instrument shall be paid to the entity legally entitled there[(,.
<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Burrower shall pay all governmental or
<br />mmticipal charges-, fines and impositions that are not included in paraglaph 2. Borrower shall pay these obligations on time
<br />directly to the entity which is owed the payment, If failure to pay would adversely affect Lender's interest in the Property,
<br />upon Lender's request Borrower shall promptly furnish to Lender receipts evidencing these payments.
<br />If Borrower tails in make these payments or the payments required by paragraph 2, or fails to perform any other covenants
<br />and agreements contained in this Security Instrument, or [here is a legal proceeding that may significantly affect Lender's
<br />rights in the Property (such as a proceeding in bankruptcy, for condemnation to enforce Taws or regulations), then Lender may
<br />do and pay whatever is necessary to protect the value of the property and Lenders rights in the Property, including payment of
<br />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 secured by
<br />ttis Security Instrument. These amounts shall bear interest form Ore date of disbursement, at the No c rate, and at the option of
<br />Lender, shall be immediately due and payable.
<br />8. Pees. Lender may collect tees 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 defaults by failing to pay in full any monthly payment required by this Security Instrument prior to
<br />or on the due date of the next monthly payment, or
<br />(it) Borrower defaults by failing, for a period of thirty days, to perform any other obligations contained in this
<br />Security instrument.
<br />(b) Sale Without Credit Approval. Lender shall, if permitted by applicable law and with the prior approval of the
<br />Secretary, inquire immediate payment in full of all sums secured by this Security Instrument if:
<br />(i) All or pare ul'tire 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 descent) by the Burrower, and
<br />(ill The Property is not occupied by the purchaser or grantee as his or her principal residence, or the purchaser or
<br />grantee does so occupy the Property but his or her credit has not been approved in accordance with the
<br />requirements of the Secretory.
<br />(c) No Waiver If circumstances occur that would permit Lender to require immediate payment in full, but Leader
<br />does not require such payments, Lender does not waive Its tights with respect to subsequent events.
<br />(d) Regulations of HUD Secretary. In many circumstances regulations issued by the .Secretary will litnit Lender's
<br />rights in the case of payment defaults to requite immediate payment in full and foreclose if not paid. This Security
<br />Instrument does not aatirci acceleration or foreclosure it not permitted by regulations of the Secretary.
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