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201a09�81
<br />and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of
<br />occupancy, unless I.ender determines that requirement will cause undue hardship for Burrower, or unless extenuatin�;
<br />circumstances exist which are beyond Borrower's control. Borrower shall notify Lender of' any axtenuating
<br />circumstances. Borrower shall not commit waste or desrroy, damage or substantially changc thc Property or allow
<br />the Properry to deteriorate, reasona6le wear and tear excepted. Lender may inspect the Property if the Property is
<br />vacant or abandoned or the loan is in default. Lender may take reasonable action to protect and preserve such vacant
<br />or abandoned Property. Borrower shall also be in default if Borrower, during the luan application process, gave
<br />materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material
<br />information) in connection with the loan evidenced by the Note, including, but nut limited to, representations
<br />concerning Borrower's occupancy of the Properry as a principal residence. If this Security Instrument is on a
<br />leasehold, [3orrower shall comply with thc provisions of che lease. if Borrower acyuires fec title to che Properry, the
<br />leasehold and tbc 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
<br />with any condamnation or other taking of any pan of the Property, or for conveyance in place pf condemnation, are
<br />hereby assigned and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid
<br />under the Note and this Security Instrument, Lender shall apply such procaeds to the reduction of the indebtedness
<br />under the Note and this Security Instrument, tirst to any delinquent ampunts applied in the order provided in
<br />paragraph 3, and then to prepayment of principal. Any application of the proceeds to the principal shall not extend
<br />or postpone the due datc of the monthly payments, which are referred to in paragraph 2, or change the amount of such
<br />payments. Any excess proceeds over an amount required to pay all outstanding indebicdness under the Npte and this
<br />Securiry Instrument shall be paid to the entity legally entitled thereto.
<br />7. Charges to Borrower and Protection of Lender'� liights in the Property. Borrower shall pay all
<br />governmemal or municipa) charges, fines and impositions that are not included in paragraph 2. Borrower shall pay
<br />these obligations on time direcdy to the entity which is owed the payment. If tailure to pay would adversely affect
<br />Lender's in�erest in the Property, upon Lender's request Borrowar shall promptly fnrnish to Lender receipts
<br />evidencing these 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 pruceeding that may significantly
<br />af'fect Lender's rights in the Properry (such as a proceeding in bankruptcy, for condemnation or to enforca laws or
<br />regulations), then Lender may do and pay whatever is necessary to protect the value of the Properry and Lender's
<br />rights in tha Properry, including payment of taxes, hazard insurance and other items mentioned in paragraph 2.
<br />Any amounts disbursed by L�nder under this paragraph shall become an additional debt of Borrower and be
<br />secured by this Security lnstrument. 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 />9orrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower:
<br />(a) agrees in writing to the payment of the obligation secured hy khe lien in a manner acceptable to Lender; (b) contests
<br />in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's
<br />opinion operata to prevent the enforcement of' the lien; or (c) secures from thc holder of the lien an agreement
<br />satisFactory to Lender subordinating the lien ro this Security lnstrument. If Lender determines that any part of the
<br />Properry is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />nntice identiFying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within
<br />10 days of the giving of notice.
<br />8. N'eex. 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 lnstrument if:
<br />(i) Borrower defaults by failing to pay in full any monthly payment required by this Security
<br />Instrumem prinr to or on the due date of the next monthly payment, or
<br />(ii) 6orrower defaults by failing, for a period of thirry days, to perform any other obligations
<br />contained in this Security Tnstrument.
<br />(b) Sale Without Credit Approval. Lender shall, if permitted by applicable law (including section 341(d)
<br />of the Garn-St Germain Uepository Institutions Act of 1982, 12 U.S.C. 1701j-3(d)) and with the prior
<br />approval of the Secretary, require immecliate payment in ful] of all sums secured by this Security Instrument if:
<br />(i) All or part of the Property, ar a bene�cial interest in a trust owning al] or part of the Property, is
<br />sold or otherwise transferred (other than by devise or descent), and
<br />(ii) The Property is not occupied by the purchaser or grantee as his or her principa] residence, or the
<br />purchaser or grantee does so occupy the Property, but his or her credit has not been approved in
<br />accordance with the requirements of the Secretary.
<br />(c) No Waiver. !f'circumstAnces occur that would permit Lender to require immediate payment in full,
<br />but Lender does not require such paymenGs, Lender doe�; not waive its nghts wich respect to subsequcnt cvents.
<br />(d) Regulations of HUD Secretary, ln many circumstances regulations issued by the Secrctary will limit
<br />Lender's rights, in the cnse of payment defaults, to require immediate payment in Full and foreclose if not
<br />paid. This Security Instrument daeti not authorize acceleration or fureclosure if not permitted by regulations
<br />of the Secretazy.
<br />(e) Mortgage Not Insured. Borrower agrees that if this Security Instrument and the Note are not
<br />determined to be eligible for insurance under the National Flousing Act within 6 0 DAX$
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