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<br />covered by flvs Security Instrument All o£ the foregoing is referred to in Uvs Security Instrument as the "Properiy."
<br />Boaower understands and agrees that MERS holds only legal fltle to the interests granted by Borrower in Uris Security
<br />Instrument; but, if nece,ssary to comply with Iaw or custom, MERS (as nominee for Lender and Leader's successors
<br />and assigns) has the right: w exercise any or all of those interests, including, but not limited to, the right to foreclose
<br />and sell the Property; and to take any action reqttired of Lender including, but not limited to, releasing or canceling
<br />this Security Instritmenf.
<br />BORROWER COVENANTS that Borrower is Iawfully seised of the estate hereby conveyed and has the right to
<br />gtant and convey the Property and tUat the Property is unencumbered, except for encumbrances oFrecord Borrowet
<br />warrants and will defend generally the title to the Property against all claims and demands, subject w any
<br />encumbrances of recwrd
<br />THIS SECLTRTI'Y INSTRUMENT combines uniform covenants for national use and non-uniform covenants wit6
<br />limited variations by jurisdiction to constidrte a uniform security instrument covering real property.
<br />UNIFORM COVENANTS. Bonower and Lender covenant aad agree as follows:
<br />1. Payment of Princfpal, Interest and Late Charge, Borrower shell pay when due the principal o� and
<br />intetest on, the debt evidenced by the Note and late charges due under the Note.
<br />2. Monthly Payment of Taga, Insmance, and Other Charges. Borrower shall include in each monfhly
<br />payment, together with the principal and interest as aet forth in the Note and any Iate charges, a sum for (a) taxes and
<br />special assesswent� levied or to be levied against the Property, (b) leasehold payments or ground rents on the
<br />Property, and (c) premiums for insitt ance required under paragraph 4. in any year in wlrich tfie Lender must pay a
<br />mortgage insurance premium to the Secretary of Housing and Urban Development ("Secretary"), or in azry year in
<br />which such premium would have been reqtrired if Lender still held the Security Inshvment, each monthly payment
<br />shall also include either: (i) a sum for the annual mortgage insurance premium to be paid by Lender to the Secremry,
<br />or (n) a monthly charge inatead of a mortgage insuraace premium if this Security Instrument is held by the Secretary,
<br />in a reasonable amount to be determined by the Secretary. Except for the monthly charge by the Secretary, these items
<br />are called "Escrow Items" and the sums paid to Lender are called "Escrow Funds."
<br />Lender may, at any time, collect and hold amounts for Fscrow Items in an aggregate smount not to exceed tha
<br />maximum amount that may be required for Borrower' s escrow account under the Real Estate Settlement Proceflures
<br />Act of 1974, 12 U.S.C. §2601 et Bea. and implementing regulafions, 24 CFR Part 3500, as they may be amended
<br />from time to time ("RESPA"), except that the cushion or reservepermittedby RESPA for tmanticipated disbursements
<br />or disbursements before the Borrower' s payments are available in the accoimt may not be based on amoimts due for
<br />the mortgage insurance premium.
<br />If the amounts held by Lender for Escrow Items excesd the amounts permitted to be held by RESPA, Lender shall
<br />accouat to Borrower for the excess fimds as reqtrired by RESPA. If the amounts of funds held by Lender at any time
<br />aze not sufficient to pay the Escrow Items when due, Lender may norify the Botrowet and requite Bortowet to make
<br />up the shoflage as petmitted by RESPA.
<br />The Escrow Funds are pledged as addi5onal seciuity for all sums sec�ued by this Secucity Instrument If
<br />Borrower tenders to Lender the full payment ofall such sums, Borrower's accouat shall be credited with the balence
<br />remaining for all installment items (a), (b), and (c) and any mortgage insurance premi� installment that Lender has
<br />not become abligated to pay to the Secretary, and Lender shall promptly refimd any excess fimds to Bonower.
<br />Immediately prior to a foreclosure sale of the Property or its acquisition by I,ender, Borrowet's account sha11 be
<br />credited with any balance remaining for a11 installments for items (a), (b), and (c).
<br />3. AppHcaflon of Paymenta All payments imder paragraphs 1 and 2 shall l� appfied by Lender as follows:
<br />FIRST_ to Ure ruortgage insurance gremium to be paid by Lender w the Secxetary or to the monthly charge by
<br />the Secretary instead of the monthly mortgage insarance premium;
<br />SECOND. to any taxes, special assessments, leasehold payments or groimd rents, and fire, flood and other hazard
<br />ins�uam,e premiums, as required;
<br />THIIiD. to interest due under the Note;
<br />FOURTH. to amortization of the principal of the Note; and
<br />FIFTH. to late charges due under the Note.
<br />4. N3re, Fiood and Other Hazard Insm�ance. Bonower shall insure a11 improvements on the Properiy,
<br />whether now in existence or subsequently erected, ag��+ any ha�rds, casualties, and coatingencies, iacluding fire,
<br />for which Lender requires insurance. Tl�is insurance shall be maintained in the amounts and for the periods that
<br />Lendet requires. Borrower sha11 also insure all improvements on the Property, whether now in existence or
<br />snbsequenfly erected, against loss by floads to the extent reqiured by the Secretaty. All insurance sha11 be carried with
<br />compaaies approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include
<br />loss paqable clauses in favor o� and in a form acceptable to, Lender.
<br />In the event ofloss, Borrower shall give Lender immediate notice bymail. Lender may make praof of loss if not
<br />made promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment
<br />for such loss direcfly to I,ender, instead of to Borrowet and to Lender jointly. All or any part of the insurance
<br />proceeds may be applied by Lendet, ai its option, either (a) to the reduction of the indebtedness under the Note and
<br />this Security Insh�ument, first w any delinquent amo�mts applied in the order in paragraph 3, and then to prepaynient
<br />of principal, or (b) to the restoratioa or repair of the damaged Properiy. Any applicstion of the proceeds to the
<br />principai ahall not extend or postpone the due date of the monUily payments w}uch are referred to in paragraph 2, or
<br />change the amoumt of such payments. Any excess insurance proceeds over an amount required to pay all outstanding
<br />indebtedness under the Note and this Security Inshvment shall be paid to the entity legally eatitled thereto.
<br />Borrower Initials: �
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