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RE- RECORDED
<br />2002022300 200212573
<br />2. Monthly Payments of Taxes, Insurance and Other Charges. Borrower shall include in each monthly payment,
<br />together with the principal and interest as set forth in the Note and any late charges, an Installment of any (a) taxes and special
<br />assessments levied or to be levied against the Property, (b) leasehold payments or ground rents on the Property. and Ic)
<br />premiums for insurance required by paragraph 4.
<br />1 Loh 111,111011 h Imtallmrn1 tut hems (a), (b). and (c) shall equal on, I, IIth of the annual amounts, as reasonahly estimated
<br />by Lender, plan an amount S a I I m c a I to maintain an additional balance of not more than one -sixth of the estimated amounts.
<br />The full annual amount for each item shall be accumulated by Lender within a period ending one month before an item would
<br />become delinquent. Lender shall hold the amounts collected in trust tr pay items (a), (b), and (c) before they became
<br />delinquent
<br />If at any time the total of the payments held by Lender for items oo, (b), and (c), together with the future monthly
<br />payments for such items payable to Lender prior to the due dates of such items, exceeds by inure than onosixth the estimated
<br />amount of payments required to pay such items when due, and if payments on the Note all current, than Lender shall either
<br />refund the excess over one -sixth of the estimated payments or credit the excess over one -sixth of the estimated payments to
<br />subsequent payments by Borrower, at the option of Borrower. If the total of the payments made by Borrower for item (a), (b),
<br />or (c) is insufficient to pay the item when due, then Borrower shall pay to Lender any amount necessary to make up the
<br />deficiency on or before the date the item becomes due.
<br />As used in this Security Instrument, "Secretary" means the Secretary of Housing and Urban Development or his or her
<br />designee. In any year in which the Lender must pay a mortgage insurance premium to the Secretary, each monthly payment
<br />shall also include either (i) an installment of the annual mortgage insurance premium to be paid by Lender to the Secretary. or
<br />(ii) a monthly charge instead of a mortgage insurance premium if this Security Insouciant is held by the Secretap. Bach
<br />monthly installment of the mortgage insurance premium shall be in an amount sufficient to accumulate the full annual
<br />mortgage insurance premium with Lender one month prior to the date the full annual mortgage insurance premium is due to
<br />the Secretary, or if this Security Instrument is held by the Secretary, each monthly charge shall be in an amount equal to one -
<br />nvelith of one -half percent of the outstanding principal balance due on the Note.
<br />If Borrower tenders to Lender the full payment of all sums secured by this Security III ancient, But account shall
<br />be credited with the balance remaining for all installments for items (a), (b) and Let and any mortgage insurance premium
<br />mtullment that Lender has not hecome obligated to pay to the Secretary, and Lender shall promptly refund any excess funds to
<br />Brxto,,Qi Immedracly purr, to a toreclosum sale of the Property or its acquisition by Lender, Borrower's account shall he
<br />credited wuh any balance remaining fur all installments for items (a). (b), and (c).
<br />3. Application of Payments. All payments under paragraphs I and 2 shall be applied by Lender as follows.
<br />First, to the mortgaCe insurance premium to be paid by Lender to the Secretary or to the monthly drag, by the Secretary
<br />instead of the monthly mortgage insurance premium;
<br />Second, to any taxes, 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;
<br />Fifth, to Tate charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property, whether now in
<br />existence or subsequently erected, against any hazards, casualties, and contingencies, including Iire, for which Lender requires
<br />insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also
<br />insure all improvements on the Property, whether now in existence or subsequently erected, against lass by floods to the extent
<br />required by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and any
<br />renewals shall be held by Lender and shall include loss payahle clauses in favor of, and in a farm acceptable to Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss it not made
<br />promptly by Borrower. Fach insurance company concerned is hereby authorized and directed to make payment for such Its
<br />directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may be applied by
<br />Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security Instrument, first to any
<br />delinquent amounts applied in the order in paragraph 3, and then to prepayment of principal, or (b) to the restoration or repair
<br />of the damaged Propeny. Any application of the proceeds to the principal shall not extend or postpone the due dam or the
<br />ninmhh papnmm, which .IC ielcrred to in paragraph ), rr change the amount of Such payments. Any excess inuranca
<br />proceed> Deer eu ariount regmred to pay all ouotaod ug indebtedness under the Note and this Security In arm nl Shull be paid
<br />to the entity legally entitled thereto.
<br />In tit em of lures wre rf thu Security lINIarnem or rther transfer of title It) the Properly that extinguishes the
<br />indebtafncss, all right, title and interest of Borrower in and to insurance policies in force shall pass to the pwchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br />Leaseholds. Borrower shall occupy, establish, and use the Propeny as Borrower's tc lrl pd residence within sixty day., after
<br />the axe vuon of this Security Instrument and shall continue to occupy the Property as Borrowers principal residence Irt al
<br />least one year after the date of rampancy, unless the Secretary determines this requirement will cause undue hardship for
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