|
<br />
<br />
<br /> 20090056E
<br /> Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the Property, the
<br /> 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..
<br /> connection with any condemnation or other taking of any part of the Property, or for conveyance in place
<br /> condemnation, are hereby assigned and shall be paid to Lender to the extent of the full amount of the
<br /> e
<br /> indebtedness that remains unpaid under the Note and this Security Instrument. Lender shall apply such
<br /> proceeds to the reduction of the indebtedness under the Note and this Security Instrument, first to any
<br /> delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment of principal. Any
<br /> application of the proceeds to the principal shall not extend or postpone the due date of the monthly
<br /> payments, which are referred to in Paragraph 2, or change the amount of such payments. Any excess
<br /> proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security
<br /> Instrument 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
<br /> all governmental or municipal charges, fines and impositions that are not included in Paragraph 2. Borrower
<br /> shall pay these obligations on time directly to the entity which is owed the payment. If failure to pay would
<br /> adversely affect Lender's interest in the Property, upon Lender's request Borrower shall promptly furnish to
<br /> Lender receipts evidencing these payments.
<br /> If Borrower fails to make these payments or the payments required by paragraph 2, or fails to
<br /> perform any other covenants and agreements contained in this Security Instrument, or there is a legal
<br /> proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy,
<br /> for condemnation or to enforce laws or regulations), then Lender may do and pay whatever is necessary to
<br /> protect the value of the 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
<br /> Borrower and be secured by this Security Instrument. These amounts shall bear interest from the date of
<br /> disbursement at the Note rate, and at the option of Lender, shall be immediately due and payable.
<br /> Borrower shall promptly discharge any lien which has priority over this Security Instrument unless
<br /> Borrower: (a) agrees in writing to the ayment of the obligation secured by the lien in a manner acceptable to
<br /> Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings
<br /> which in the Lender's opinion operate to prevent the enforcement of the lien- or (c) secures from the holder of
<br /> the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender
<br /> determines that any part of the Property is subject to a hen which may attain priority over this Security
<br /> Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take
<br /> one or more of the actions set forth above within 10 days of the 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
<br /> defaults, require immediate payment in full of all sums secured by this Security Instrument if -
<br /> (I) Borrower defaults' failing to pay in full any monthly payment required by this Security Instrument prior
<br /> to or on the due date of the next monthly pa ent, or
<br /> ur) 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 (including section 341(d)
<br /> of the Garn-St Germain Depository Institutions Act of 1982, 12 U.S.C. 1701]-3(d)) and with the prior
<br /> approval of the Secretary, require immediate payment in full of all the sums secured by this Security
<br /> 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 tcansfm red (other than by devise or descent), and
<br /> (ii) The Property is not occupied by the purchaser or grantee as his or her principal residence, or the
<br /> purchaser or grantee does so occupy the Property, but his or her credit has not been approved in accordance
<br /> with the requirements of the Secretary.
<br /> (c) No Waiver. If circumstances occur that would permit Lender to require immediate payment in full, but
<br /> Lender 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 issued by the Secretary will limit
<br /> Lender a rights, in the case of payment defaults, to require immediate payment in full and foreclose if not
<br /> paid. This Security Instrument does not authorize acceleration or foreclosure if not permitted by regulations
<br /> of the Secretary.
<br /> (e) Mortgage Not Insured. Borrower agrees that if this Security Instrument and the Note are not determined
<br /> to be eligible for insurance under the National Housing Act within 60 Days from the date hereof, bender
<br /> may, at its option require immediate payment in full of all sums secured by this Security Instruent. A
<br /> written statement of any authorized agent of the Secretary dated subsequent to 60 Days from the date
<br /> hereof, declining to insure this Security Instrument and the Note, shall be deemed conclusive proof of such
<br /> ineligibility. Notwithstanding the foregoing, this option may not be exercised by Lender when tfte
<br /> 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 if Lender has required immediate payment
<br /> in full be6ause of Borrower's failure to pay an amount due under the Note or this Security Instrument. This
<br /> right applies even after foreclosure proceedings are instituted. To, reinstate the Security Instrument, Borrower
<br /> shall tender in a lump sum all amounts required to bring Borrower's account current including, to the extent
<br /> they are obligations of Borrower under this Security Instrument, foreclosure costs and reasonable and
<br /> customary attorney's fees and expenses properly associated with the foreclosure proceeding. Upon
<br /> reinstatement by Borrower, this Security Instrument and the obligations that it secures shall remain in effect
<br /> as if Lender had not required immediate payment in full. However, Lender is not required to permit
<br /> reinstatement if. (i) Lender has accepted reinstatement after the commencement of foreclosure proceedings
<br /> 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 (iii) reinstatement will adversely
<br /> affect the priority of the lien created by this Security instrument,
<br /> 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time of
<br /> payment or modification of amortization of the stuns secured by this Security Instrument granted by Lender
<br /> to any successor in interest of Borrower shall not operate to release the liability of the original Borrower or
<br /> Borrower's successor in interest. Lender shall not be required to commence proceedings against any
<br /> successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums
<br /> secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's
<br /> 16256.CV (11/07) 4200220
<br /> Page 3 of 5
<br />
|