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<br />20110404�
<br />Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the Property, the
<br />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
<br />connection with any condemnation or other taking of any part of the Property, or for conveyance in place of
<br />condemnation, are hereby assigned and shall be paid to Lender to the extent of the full amount of the
<br />indebtedness that remains unpaid under the Note and this Security I;nstrument. Lender shall apply such
<br />proceeds to the reduction of the indebtedness under the Note and this Security Instnunent, first to any
<br />delinquent amounts applied in the order 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 monthly
<br />payments, which are referred to in Paragraph 2, or change 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 of Lender's Rights in the Property. Borrower shall pay
<br />all governmental or municipal charges, fines and impositions that are not included in Paragraph 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 affect 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 there is a lega]
<br />proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy,
<br />for condemnation or to enforce laws or regulations), then Lender may do and pay whatever is necessary to
<br />protect the value of the Property and Lender's rights in the Properly, including payment of taxes, hazard
<br />msurance and other items mentioned in Paragraph 2.
<br />Any amounts disbuzsed 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 from the date of
<br />isbursement at the Note rate, and at the option of Lender, shall be immediately due and payable.
<br />Bonower shall promptly discharge any lien which has priority over this Security Instrument unless
<br />orrower: (a) agrees in writing to the payment of the obligation secnred by the lien in a manner acceptable to
<br />ender; (b) contests in good faith the hen by, or defends against enforcement of the lien in, legal proceedings
<br />hich in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of
<br />e lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender
<br />etermines that any part of the Property is subject to a lien which may attain priority over this Security
<br />strument, Lender may give Borrower a notice identifying the lien. Bonower shall satisfy the lien or take
<br />ne or more of the actions set forth above within 10 days of the giving of notice.
<br />I 8. Fees. Lender may collect fees and charges authorized by the Secretary.
<br />9. Grounds for Acceleration of Debt.
<br />) Defaul� Lender may, except as limited by regulations issued by the Secretary in the case of payment
<br />faults, require immediate payment in full of all sums sacured by this Security Instrument if:
<br />Borrower defaults by failing to pay in full any monthly payment required by this Security Instrument prior
<br />or on the due date of the next monthly gayment, or
<br />'") Borrower defaults by failing, for a period of thirty days, to perform any other obligations contained in this
<br />curity Instrument.
<br />I) Sale Without Credit Approval. Lender shall, ifpermitted by applicable law (including section 341(d)
<br />the Garn-St Germain Depository Institutions Act of 1982, 12 U.S.C. 1701j-3(d)) and with the prior
<br />proval of the Secretary, require immediate payment in full of all the sums secured by this Security
<br />[ trument if:
<br />' All or part of the Property, or a beneficial interest in a trust owning all or part of the Property, is sold or
<br />� erwise transferred (other than by devise or descent), and
<br />` The Property is not occupied by the purchaser or grantee as his or her principal residence, or the
<br />i' chaser or grantee does so occupy the Property, but his or her credit has not been approved in accordance
<br />' the requirements of the Secretary.
<br />' � No Waiver. If circumstances occur that would permit Lender to require immediate payment in full, but
<br />., der does not require such payments, L,ender does not waive its rights with respect to subsequent events.
<br />Regulations of HUD Secretary. In many circumstances regulations issued by the Secretary will limit
<br />., der's rights, in the case of payment defaults, to require immediate payment in full and foreclose if not
<br />�,i . This Security Instrument does not authorize acceleration or foreclosure if not permitted by regulations
<br />� he Secretary.
<br />;e' ortgage Not Insured. Borrower agrees that if this Security Instrument and the Note are not determined
<br />o � e eligible for insurance under the National Housing Act within 90 Days from the date hereof, Lender
<br />n, at its option require immediate payment in full of all sums secured by this Security Instrument. A
<br />en statement of any authorized agent of the Secretary dated subsequent to 90 Days from the date
<br />ie of, declining to insure this Security Instrument and the Note, shall be deemed conclusive proof of such
<br />n i�gibility. Notwithstanding the foregoing, this option may not be exercised by Lender when the
<br />in � ailability of insurance is solely due to Lender's failure to remit a mortgage insurance premium to the
<br />in
<br />as
<br />to
<br />10. Reinstatement Borrower has a right to be reinstated if Lender has required immediate payment
<br />'.1 because of Bonower's failure to pay an amount due under the Note or this Security Instrument. This
<br />applies even after foreclosure proceedings are instituted. To reinstate the Security Instrument, Borrower
<br />tender in a lump sum all amounts required to bring Borrower's account cunent including, to the extent
<br />are obligations of Borrower under this Security Instrument, foreclosure costs and reasonable and
<br />mary attorne�s fees and expenses properly associated with the foreclosure proceeding. Upon
<br />`atement by Borrower, this Security Instrument and the obligations that it secures shall remain in effect
<br />Lender had not reqnired immediate payment in full. However, Lender is not required to permit
<br />;atement if: (i) Lender has accepted reinstatement after the commencement of foreclosure proceedings
<br />n two years immediately preceding the commencement of a current foreclosure proceeding, (ii)
<br />;atement will preclude foreclosure on different grounds in the future, or (iii} reinstatement will adversely
<br />the priority of the lien created by this Security Instrument.
<br />11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time of
<br />t or modification of amortization of the sums secured by this Security Instrument granted by Lender
<br />successor in interest of Borrower shall not operate to release the liability of the original Borrower or
<br />wer's successor in interest. Lender shall not be required to commence proceedings against any
<br />sor in interest or refuse to extend time for payment or otherwise modify amortization of the sums
<br />d by this Security Instrument by reason of any demand made by the original Borrower or Bonower's
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