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<br />200202233 2001 —M)io
<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 wear and tear excepted. Lender may inspect the Property if the Property is vacant
<br />or abandoned or the loan is in default Lender may take reasonable action to protect and preserve such vacant or abandoned
<br />P R.," ,,, .h.11 al. he In del'nih it Rormwll_ iu 1111 the loon application put s, gave maicualk false or inaccurate
<br />imo "auOr or statements it) tondo tar faded to provide Lender with any material information) in connection with the loan
<br />evidenced by the Nate, including_ but not limited to, representations concerning Borrower, occupancy of the Property as a
<br />principal residence. If this Seem ]TV Instrument is on a leasehold. Borrower shall comply with all the provisions of the lease- It
<br />Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless Lender agrees to the merger in
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<br />6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connecGnn with any
<br />condemnation m other Inking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned and
<br />shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this
<br />Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Sao urity
<br />Instrument, first to any delinquent amounts applied in the order provided in paragraph 3, and then to fa epayment of principal.
<br />Any application of the proceeds to the principal shall not extend or postpone the due date 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 thereto.
<br />7. Charges to Borrower and Protection of Lender's Rights in the Properly. Borrower shall pay all governmental or
<br />municipal charges, lines 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 Lender 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 covenants
<br />and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lenders
<br />tights 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 />tar, hazard insurance and other items mentioned in paragraph 2.
<br />\m i c JI,i" . 'I , I coda, cadu ill r, poi all .1 11)1, .hall become an additional debt of Borrower and be sccarel by
<br />this S'CLa u} Instrument T [less amounts shall bear milled from the data of d'ubursemcm, at the Note rate, and at the option of
<br />Lendcr, shall be immediately due and payable.
<br />8. Fees. Lender may collect tees and charges umhorized by the Secretary.
<br />9. Grounds for Acceleration of Debt.
<br />(a) Default Lender may, except as limited by regulations issued by the Secretory 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 />(ii) 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, require immediate payment in full of all sums secured by this Security Instrument 11
<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 transferred (other than by devise or descent) by the Borrower, and
<br />(ii) 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 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) Regulations of HUD Secretary. In many circumstances regulations is's'ued by the Secretary will limit Lender's
<br />rights in the case of payment defaults to require immediate payment in full and foreclose if not paid. This Security
<br />I t 1111l n 11 o" i. auth,u Ve 1 1111,1111)1' ''1 hi eUklare it not permuad h¢ regalltions of the Secretary.
<br />(e) Mongagc No[ Insured. Borrower agrees that should this Security Instrument and the Note secured thereby not be
<br />eligible rot insurance under the National Housing Act within b0 days Rom the date hereot, Lender may, at its option
<br />and nom,thstandlne anothing in parag,aph 9_requi c immediate payment in PoII of all sump secured by this Seaunry
<br />Instrument A winter, statement of any authorized agent of the Secretary dated subsequent to 60 days from the date
<br />hoed, dechmng w mnare this Se vnty lavtrument and [he Note secured then hy, shall he deemed conclusive prool of
<br />such ineligibility. Noovahstandin, the foregoing, this option may not be exercised by Lender when the unavailabihty
<br />of insurance is solely due to Lender's failure to remit a mortgage insurance premium to the Secretary,
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