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<br />200903102
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<br />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
<br />evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property
<br />as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with the proviSions of the
<br />lease. If Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless Lender agrees
<br />to the merger in writing.
<br />6. Condemnation.. The proceeds of any award or claim for damages, direct or consequential, in connection with
<br />any. condemnation or other taking of any part of the Property, or for.conveyance in place of condemnation, are hereby
<br />assigned and shall be paid to Lender to the extent of the full amount of the indebtedness that remainS UIlpaid Wlder the
<br />Note and this Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note
<br />and this Security Instrument, first to any delinquent amoWlts applied in the order provided in paragraph 3, and then to
<br />prepayment of principal. Any application of the proceeds to the principal shall not extend or postpone the due date of the
<br />monthly payments, which are referred to in paragraph 2, or change the amount of stich payments. Any excess proceeds
<br />over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be paid to
<br />the entity legally entitled thereto.
<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all
<br />governmental or municipal charges, fines and impositions that are not included in paragraph 2. Borrower shall pay these
<br />obligations on time directly to the entity which is owed the payment. If failure to pay would adversely affect Lender's
<br />interest in the Property, upon Lender's request Borrower shall promptly furnish to Lender receipts evidencing these
<br />payments.
<br />If Borrower fails to make these payments or the payments required by paragraph 2, or fails to perfonn any other
<br />covenants and agreements contained in this Security IIIIltrwnent, or there is a .legal proceeding that may significantly
<br />affect Lender's~ rights in the Property (such as a proceeding in bankruptcy, for condenmation or to enforce laws or
<br />regulalioll'l), then Lender may do and pay whatever is. necessary to protect the value of the Property and Lender's rights
<br />in the Property, including payment of taxes, hazard 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
<br />secured by this Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate,
<br />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 Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in
<br />good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion
<br />operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satiSfactory to
<br />Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to
<br />a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien.
<br />Borrower shall satisfy the lien or take 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 or 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 aU 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
<br />prior to or on the due date of the next monrhly payment, or
<br />(ii) Borrower defaults by failing, for a period of thirty days, to perform any other obligations contained in
<br />this Security Instrument.
<br />(b) Sale Without Credit Approval. Lender shall, if pennitted by applicable law (including Section 341(d) of
<br />the Gam-St. Germain Depository Instinuions Act of 1982, 12 U.S.C.1701j-3(d)) and with the prior approval of
<br />the Secretary, require immediate payment in full of all sums secured by this Security Instrument if:
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