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<br />�orrower shall comply with the provisions of the lcase. If Borrower acquires fee title to ths Proporty, the
<br />leasehold and fee title shall �ot be mergad unless Lender �greea to the mer�er in writin�.
<br />6. Condemnution. The proceeds of �ny award or claim for damages, direct ar conssquen�ial, in
<br />connection with any condemnation or other taking af any part of the Property, or for oonveyanco in plac� of
<br />condemnation, are hereby assigned and shall be paid to Lendar to the extent of t�e full amount of tk�c
<br />indebtodncss that rcrnains unpaid under the Note and this Security Instrumer�t. Lender shall apply such
<br />proceeds to the reduction of the indebtedness under the Note and this Security Instrur�lent, first to any
<br />delinquent amounts applied in the arder 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 month�y
<br />payments, which are referred to in Paragraph 2, or chan�e 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 pf Lender's Rights in the Property. Borrower shall pay
<br />all governmental or municipal charges, fines and impositions that are not included in Para�raph 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 af�'ect 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 thero is a l��al
<br />proceeding that may significantly affect Lender's ri ts in the Property (such as a proceeding in bankruptcy,
<br />for condemnation or to enfarce laws or regulations�then Lender may do and pay whatever is necessary to
<br />�rotect the value of the Property and Lender's rights in the Property, including paymGnt 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 fr�m the date of
<br />disbursament 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 unl�ss
<br />Borrower: (a) agrees in wrrtin� to the payment of the obligation secured by the lien in a manner accoptable to
<br />Lender; (b) contests in good #'aith th� Iien 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 frorri the holder of
<br />the lien an agreement satisfactary to Lender subordinatin� the lien to this Security Instrument. If Lender
<br />determines that any part of the Property is subject to a lien which may attain priority over this Sect.irity
<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 />S. 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 by 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 �ayment, or
<br />(ii) 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, ifpermitted by applicable law (including section 341(d)
<br />of the Garn-St Germain Depo$itary Institutians Act of 1982, 12 U.S.C. 1701j-3(d)) and with the prior
<br />approval of the Secretary, requirt immodiate payment in full of all the sums secured by this Secur�ty
<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 transferred (�ther tt�an by devise ar descent), �.nd
<br />(ii) The Property is not occupied by the purchaser or grantee as his or hsr principal residence, or the
<br />purchaser or �rantee daes so oecupy the Property, but his or her credit has not been approved in accordance
<br />with the requirements of the Sccretary.
<br />(c) No W�lver. If cir�umstances occur that would permit Lender to require immediate payment in full, but
<br />Lender daes not require such payments, Lender does not waive its rights with respect to subsequont events.
<br />(d) Regulations of HITD Secretary. In many circumstances regulations issued by the Secretary will limit
<br />Lender's 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 90 Days from the date hereof, Lender
<br />may, at its option require immediate payment in full of all sums secured by this Security Instrument. A
<br />written statement of any authorized agent of the Secretary dated subsequent to 90 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 the
<br />unavailability of insurance is solely due to Lender's failure to remit a mortgage insurance premium to the
<br />Secretary.
<br />10. Reinstatennent. Borrower has a right to be reinstated if Lender has required immediate payment
<br />in full becaus� of Borrower's failure to pay an amount due under the Note or this Security Instrurnent. This
<br />right applies even after foreclosure proceedings are instittuted. To reinstate the Security Instrument, Borrower
<br />shall tender in a lump sum all amounts xequired to bring Borrower's account current including, to the extent
<br />they are obligations of Borrower under this Security Instrument, foreclosure costs and reasanable and
<br />customary attorney's fees and expenses properly associated with the foreclosure proceeding. Up on
<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, Lendex is not required to permit
<br />reinstatement if (i) Lender has accepted reinstatement after the commencement of foreclosure proeeedings
<br />within two years irnmediately preceding tho commencement of a current foreclosure proce�ding, (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 titne of
<br />payment or modification of amortization of the sums 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 ar otherwise modify amortization of the sums
<br />secured by this Security Instrurnent by reason of any demand made by the original $orrower or Borrower's
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