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<br />200710257
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<br />V2 WBCO LOAN # 501696918
<br />Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information
<br />or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note,
<br />including, but not limited to, representations concerning Borrower's occupancy oftheProperty as a principal residence. Ifthis Security
<br />Instnullent is 011 a leasehold, Borrower shall comply with the provisions ofthe lease. If Borrower acquix:es fee title to the Property,
<br />the leasehold and fee title shall not be merged unless Lender agrees to the merger in writing.
<br />6. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any
<br />condemnation or other laking of any parl ofthe Property, or for conveyance in place of condemnation, are hereby assigned and shaH
<br />be pa id to Lender lo the extent of the full amount ofthe indebtedness that remains unpaid under the Note and this Security Instrument.
<br />Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security Instnllnent, first to any
<br />delinquent amounts applied in the order provided in paragraph 3, and then to prepayment of principal. Any application ofthe proceeds
<br />to the principal shall not extend or postpone the due date ofthe monthly payments, which are referred to in paragraph 2, or change
<br />the amount of such payments. Any excess proceeds over an amount required to pay all outstanding indebtedness under the Note and
<br />this Security Instnllnent shall be paid to the entity legally entitled thereto.
<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 directly
<br />to the entity which is owed the payment. Iffailure to pay would adversely affect Lender's interest in the Property, upon Lender' s request
<br />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 and
<br />agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's righls in the
<br />Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may do and pay
<br />whatever is necessary to protect the value ofthe Property and Lender's rights in the Property, including payment of taxes, hazard
<br />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 this
<br />Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the option of Lender,
<br />shall be immediately due and payable.
<br />Borrower shall promptly discharge any lien which has priorityoverthis Security Instrument unless Borrower: (a) agrees in writing
<br />to the payment ofthe obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends
<br />against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien;
<br />or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instnllllent. If
<br />Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender
<br />may give Borrower a notice identifying the lien. Borrower shall satis(v the lien or take one or more of the actions set forth above within
<br />10 days ofthe giving of notice.
<br />8. Fees. Lender may collect fees 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, require
<br />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 Instnul1ent prior to or
<br />on the due date of the next monthly payment, or
<br />(ii) Borrower defaults by failing, for a period ofthirty days, to perform any other obligations contained in this Security
<br />Instnul1ent.
<br />(b) Sale Without Credit Approval. Lender shall, if permitted by applicable law (including Section 341(d) of the Garn-
<br />St. GennainDepositOlY Institutions Act ofl982, 12 D.S.C. 170Ij-3(d)) and with the prior approval ofthe Secretary, require
<br />immediate payment in fl111 of all sums secured by this Security Instnllnent if:
<br />(i) All or part of the Property, or a beneficial interest in a tmst owning all or part of the Property, is sold or otherwise
<br />transferred (other than by devise or descent), and
<br />(ii) The Property is not occupied bythc purchaser or grantee as his or her principa 1 residence, or the purchaser or grantee
<br />does so occupy the Property but his or her credit has not been approved in accordance with the requirements of the
<br />Secretary.
<br />(e) No Waiver. If circumstailces occur that would permit Lender to require immediate payment in full, but Lender does
<br />not require such payments, Lender does not waive its rights with respect to subsequent events.
<br />(d) Regul ati ons of HUD Secretary. In many circumstances regulations issued by the Secretmy will limit Lender's rights,
<br />in the case of payment defaults, to requi re immediate payment in full and foreclose if not paid. This Security Instnunent
<br />does not authorize acceleration or foreclosure if not permitted by regulations of the Secretary.
<br />(e) MoIigage Not Insured. Borrower agrees that ifthis Security Instnlluent and the Note are not determined to be eligible
<br />for insurance under the National Housing Act within 60 days from the date hereof, Lender may, at its option, require
<br />immediate payment in full of all sums secured by this Security Instnuuent. A written statement of any authorized agent of
<br />the SecretaIY dated subsequent to 60 days from the date hereof, declining to insure this Security Instrument and the Note,
<br />shall be deemed conclusive proof of such ineligibility. Notwithstanding the foregoing, this option may not be exercised by
<br />Lender when the unavailability of insurance is solely due to Lender's failure to remit a mortgage insurance premium to the
<br />Secretary.
<br />10. Reinstatement. Borrower has a right to be reinstated ifLender has required immediate payment in:n1ll because of Borrower' s
<br />failure to pay an amount due under the Note or this Security Instnnnent. This right applies even after foreclosure proceedings are
<br />instituted. To reinstate the Sccnrity Instnllnent, Borrower shall tenderin a lump sum all amounts required to bring Borrower's account
<br />current including, to the extent they are obligations of Borrower under this Security Instrument, foreclosure costs and reasonable and
<br />customary attomeys' fees and expenses properly associated with the foreclosure proceeding. Upon reinstatement by Borrower, this
<br />Security Instnunent and the obligations that it secures shall remain in effect as if Lender had not required immediate payment in fl1ll.
<br />However, Lender is not required to permit reinstatement if: (i) Lender has accepted reinstatement after the commencement of
<br />foreclosure proceedings within two years immediately preceding the commencement of a current foreclosure proceeding, (ii)
<br />reinstatement will preclude foreclosure on different grounds in the future, or (Hi) reinstatement will adversely affect the priority of
<br />the lien created by this Security Instnunent.
<br />11. BOlTowe,' Not Released; FOl'hearance By Lemler Not a Waiver. Extension of the time of payment or modification of
<br />amortization of the sums secured by this Security Instnllllent granted by Lender to any successor in interest of Bon ower shall not
<br />operate to release the liability of the original Borrower or Borrower's successor in interest. Lender shall not be required to commence
<br />proceedings against any sUCCeSsor in interest or refl1se to eA1end time for payment or othenvise modify amortization oHhe sums secured
<br />by this Securily Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. Any
<br />forbearance by Lender in exercising any right 01' remedy shall not be a waiver of or preclude the exercise of any right or remedy.
<br />12. Successors nnd Assigns Bound; Joint and Severnl Liability; Co-Signers. The covenants and agreements ofthis Security
<br />Instnllnent shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 9(b).
<br />Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Secur~ty ~nstrument ut d~e~ not
<br />In1t1als: +1.11.
<br />FIlA Nehl'askll Deed o1'1'l'l\sl - 4/96 Page 30f 5 NEEFHADE
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