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<br />and shall continue to occupy the Property as Bortower's principal residence for at least one yeaz after the date of
<br />occupancy, unless Lender determines that requirement will cause undue hardship for Borrower, or unless extenuating
<br />circumstances eacist which are beyond Borrower's control. Borrower shal] norify Lender of any extenuating
<br />circumstances. Borrower shall not commit waste or destroy, damage or substantially change the Property or allow
<br />the Property to deteriorate, reasonable wear and teaz 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, dwing the loan application process, gaue
<br />materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material
<br />infotmation) in connection with the loan evidenced by the Note, including, but not limited to, representations
<br />concerning Borrower's occupancy of the Property as a principal residence. If this Security lnstrument is on a
<br />leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the Property, the
<br />leasehold and fee 6tle shall not be merged unless Lender agrees to the merger in writing.
<br />6. Condemnation. The proceeds of any awazd or claim for damages, direct or consequenriat, in connection
<br />with any condei�ation or other taking of any part of tke Property, or for conveyance in place of condemnation, aze
<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 Instntment. Lender shall apply such proceeds to the reduction of the indebtedness
<br />under the Note and this Security Instrument, first to any delinquent amounts applied in the order provided in
<br />pazagraph 3, and then to prepayment of principal. F.ny application of the proceeds to the principal shall not extend
<br />or postpone the due date of the monthly payments, which aze referred to in pazagraph 2, or change the amount of such
<br />payments. Any excess proceeds over an amount required to pay all outstanding indebtedness under the Note and this
<br />Security Instrument shall be paid to the entity legaliy enfitled thereto.
<br />7. Charges to Borrower and ProtecHon of Lender's Rights in the Property. Bonower shall pay all
<br />governmental or municipal charges, fines and unposirions that aze not included in paragraph 2. Borrower shall pay
<br />these obligations on time directly to the enrity which is owed the payment. If failure to pay would adversely affect
<br />Lender's interest in the Property, upon Lender's request Borrower shall promptly furnish 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 ageements 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 baiilvuptcy, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay whatever is necessary to protect the value of the Properiy and Lender' s
<br />rights in the Property, including payment of ta7ces, hazard insurance and other items mentioned in pazagraph 2.
<br />Any axnounts disbursed by Lender under this paragraph shall become an addi4onal debt of Borrower and be
<br />secwed 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:
<br />(a) agrees in writing to the payment of the obligarion secured by the tien 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 operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement
<br />satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the
<br />Property is subject to a lien which may attain priority over this Security Instrument, Lender may give $orrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above widvn
<br />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 itnmediate payment in full of all swns secured by this Securiry Instrument if:
<br />(i) Bonower defaults by failing to pay in full any monthly payment required by tlus Security
<br />Instrument prior to or on the due date of the next monthly payment, or
<br />(ii) Borrower defaults by failing, for a period of thirty days, to perform any other obligations
<br />contained in this Security Instrument.
<br />@) Sale Without Credit Approvai. Lender shall, if perntitted by applicable ]aw (including secrion 341(d)
<br />of the Garn-St. Germain Depository Institutions Act of 1982, 12 U.S.C. 1701j-3(d)) and with the prior
<br />approval of the Secretary, require immediate payment in full of all sutns secured by tivs Security Instrument if:
<br />(i) All or part of the Property, or a beneficial interest in a trust owivng all or part of the Property, is
<br />sold or otherwise transferred (other than by devise or descent), and
<br />(ri) The Property is not occupied by the pwchaser 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
<br />accordance with the requirements of the Secretary.
<br />(c) No Waiver. If circumstances occur that would permit Lender to require vnmediate payment in full,
<br />but Lender does not require such payments, L�der 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'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 pernutted by regulations
<br />of the Secretary.
<br />(e) Mortgage Not Insured. Borrower agrees that if this Secwity Instrument and tbe Note are not
<br />determined to be eligible for insurance under the National Housing Act within 6 0 DAYS
<br />Bonower Initials:
<br />A DEED OF TRtJST - MERS
<br />11/01/08 Page 3 of 7
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