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201002852
<br />CASE #: NE3212742060703 DQC ID #: 00021922168604010
<br />Fourth, to amortization of the principal of the Note; and
<br />Fifth, to late charges due under the Note.
<br />4. Fire, Flood and Other Hazard Insnrance. Burrower shall insure all improvements on the Property, whether
<br />now in existence or subsequently erected, against any hazards, casualties, and contingencies, including fire. for which
<br />Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires,
<br />Borrower shall also Insure all improvements on the Property, whether now in existence or subsequently erected, against
<br />loss by floods to the extent required by the Secretary. All insurance shad be carried with companies approved try Lender.
<br />The insurance policies and aqy renewals shall be held by Lender and shall include loss payable clauses in favor of, and in
<br />a form acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not
<br />made promptly by Borrower. F.ach insurance company concerned is hereby authorized and directed to make payment for
<br />such loss directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may
<br />be applied by Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security
<br />instrument, first to any delinquent amounts applied in the order in paragraph 3, and then to prepayment of principal, or (b)
<br />to the restoration or repair of the damaged Property. Any application of the proceeds to the principal shall not extend or
<br />postpone the due date of the monthly payments which are referred to in paragraph 2, or change the anwunt of such
<br />payments. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness under the Note
<br />and this Security Instrument shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the
<br />indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br />Leaseholds. Bon•ower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days
<br />after the execution of this Secruity Instrument (or within sixty days of a later sale or transfer of the Property) and shall
<br />continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless
<br />Lender determines that requirement will cause undue hardship for Borrower', or unless extenuating circumstances exist
<br />which arc beyond Borrower's control. Borrower shall notify Lender of any extenuating circumstances. Borrower shall not
<br />commit waste or destroy, damage or substantially change the Property or allow the Property to deteriorate, reasonable
<br />wear and tear excepted. Lender may inspect the Property if the Property is vacant or abandoned or the loan is in default.
<br />Lender may take reasonable action to protect and preserve such vacant or abandoned Property. Borrower shall also be in
<br />default it' Borrower, during the loan application process, gave materially false or inaccurate information or statements to
<br />Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by tiro Note,
<br />including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If
<br />this Security lnstrument is on a leasehold, Borrower shad comply with the provisions of the lease. If Borrower acquires
<br />fee title to the Property, 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 Conner tion 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 unpaid under 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 amounts 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 payrtrcrrts, which rue referred to in paragraph 2, or change the amount of such payments. Any excess prnreeds
<br />over an amount required ro pay all outstanding indebtedness under the Note and this Security Instrument shall he 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 />governruental 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 perform any other
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly
<br />affect Lender's rights in the Property (such as a proceeding in bankntptcy, for condemnation or to enforr a laws or
<br />regulations), then Lender uray do and pay whatever is necessary to protect the value of the Properly and Lenders rights in
<br />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 L>c urcurcd
<br />by this Security Inshlrnu~rd. These amounts shall bear interest from the date of disbursement, at the Note rate, ;wd at the
<br />option of Lender, shall b~ immediately due and payable.
<br />Borrower shall proiry~tly discharge any lien which has priority over this Security Instrument unless Bonmver: (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 lty, nr 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 thr. Property is subject to a
<br />lien which may attain priority over this Security lnstrument, Lender may give Borrower a noticr. identifying the lien.
<br />Burower shall satisfy the I icn or take one or more of the actions set forth above within 10 days of the giving of notice.
<br />$. Fees. Lender may collect tires and charges authorized by the Secretary.
<br />9. Grounds for 1rceleration of Deht.
<br />(a) Default. Lender may, except as limited by regulations issued by the Secretary, in the case of payment
<br />defaults, require immediate payment in full of all sums secured by this Security lnstnrrnent if:
<br />(i) Borrower defaults by failing to pay in full any monthly payment required by this Security
<br />instrument prior to or on the thrc date of the next monthly payment, or
<br />(ii) Borrower defaults by failing, for a period of thirty days, to perform any other obligations contained
<br />in this S ~curity lnstrwnent.
<br />MER$ FHA Dced of TrusLNE
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