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200207318
<br />" the event of toreclosnr r e of this Security Instrument o other transfer of title to the Property that extinguishes the
<br />Indebtedness, all right, title and interest of Borrower in and to insurance politics in kneushall 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's principal residence within sixty days after
<br />the execution of this Security Instrument and shall continue to occupy the Property as Borrower's In incipal residence for at
<br />least one year after the date of occupancy, unless the Secretary determines this requirement will cause undue hardship cur
<br />Borrower, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall notify Lenders of
<br />any extenuating circumstances. Borrow shall not commit waste or destroy, damage or substantially change the Property or
<br />allow the Property to deteriorate, reasonable were and tear excepted. Lender may inspect the Property if the Property is vacant
<br />of abandoned or the loan is is 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 ro Lender (or failed to provide Lender with any material information) in connection with the loan
<br />evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a
<br />principal residence, If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If
<br />Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless Lender agrees to the merger in
<br />writing.
<br />fi. Condenmation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br />condemnanon or other taking A any part of the Property, or for conveyance in place of condemnation, are hereby assigned and
<br />.hall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this
<br />Security Instrmnent. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security
<br />Instrument, first to any delinquent amounts applied in the order provided in paragraph 3, and then to prepayment of principal.
<br />Any application Of the proceeds to the principal shall not extcnd or postpone the due date of the monthly payments, which are
<br />retuned 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 thereto
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<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all governmental or
<br />municipal charges, fines and Impositions that are not included in paragraph 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 tender receipts evidencing these payments.
<br />If Borrower fails To make these payments or the payments required by paragraph 2, or fails to perform any other urverea is
<br />and agreements contained in this Security Instrument, or there 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 laws 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 ether 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 />this Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the option of
<br />Lender_ shall be immediately due and payahlc.
<br />8. Fees. Lender may collect fees and charges authorized by the Sc Tvlkuy.
<br />9. Grounds for Acceleration of Debt.
<br />(a) Detault. Lender may, except as limited by regulations issued by the Secretary in the ease of payment defaults,
<br />require immediate payment in full Of all sums secured by this Security Instrument if:
<br />o) Burnnve, defaults by failing to pay in full any monthly payment required by this Security Instrument prior to
<br />or on the due date otthe next monthly payment, Or
<br />(ii) Borrower defaults by tailing, for a period A thirty days, to perform any other obligations contained in this
<br />Security Instrument,
<br />(h) Set, Without Credit Approval Lender shall, if permitted by applicable law and with the prior approval of the
<br />Secretary, require immediate payment in hull of all 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 tranatened (other than by devise or descent) by the Borrower, and
<br />(it) 'I he Property is nor Occupied by the purchaser or grantee as his or her In ricipal residence, or the purchaser or
<br />@cameo does so occupy the Property but his or her credit has not been approved in accordance with the
<br />requ nerroms tit the Secretary.
<br />(c) No Waiver_ If circumstances occur that would permit Lender to require immediate payment in full, but Lender
<br />does not require such payments, Lender does not waive its rights with respect to subsequent events.
<br />(d) Regulahnns of HUD Secretary. In many circumstances regulations issued by the Secretary will limit Lender's
<br />rights in the case of payment defaults to require immediate payment in full and foreclose if nor paid. 'this Security
<br />Instrument does not authorize acceleration or foreclosure if not permitted by regulations of the Secretary.
<br />eoaeucr PupeI al '6
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