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<br />In the ev�t of fa�eclosure of this Security Insm�t or other taansfer of title to the Prope�ty that extinguish� the
<br />indebtedne�, all right, title aad interest of Bonower in and to insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Praervatton, Maintenance and ProtecNon of the Property; Borrower's Loan Appflcalion;
<br />LcaseLolda Borrower shall occupy, establish, and use the Properiy as Bonower's principal residence wiUvn sixty
<br />days after the exe�ution of this Security Instrument (or within sixty days of a later sale or transfer of the Property)
<br />and shall confinue to occupy the Properry as Bortower's princigal resideace for at least one year after the date of
<br />occupancy, unless Lender determines that requuement will cause undue hatdship for Borrower, or unless exteauating
<br />circumstances exist wlrich are beyond Borrower' s co�rol. Borrower shall norify Lender of any extenuating
<br />circumsfances. Borrower sLall not commit waste or destroy, damage or aubstantially change the Property or allow
<br />the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect the Propetty 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 Fraperiy. Bonower shall also be in default if Bonower, during the loan application process, gave
<br />materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material
<br />informatian) in cormection with the loan evidenced by the Note, including, but not limited to, representations
<br />concetning Borrower's occupancy of the Ptoperty as a principal residence. If this Security Instrvment is on a
<br />leasehold, Bortower 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. Condemaaflon. The procesds of any award or claim for damages, direct or consequential, in connection
<br />with azry condemnation or other taldng of airy part of the Property, or for conveyance ia place of condemnation, aze
<br />hereby assigned and shall be paid to Leader to the axtent of the full amount of the indebtedness that remains u�aid
<br />under the Note and this Security Instrument Leader shall apply such proceeds to the reduckon of the indebtedness
<br />under the Note and this Security Instrument, fitst to any delinqueut a�nouats applied in the order provided in
<br />paragraph 3, and then to prepayment of principal. Any application of the proceeds to the principal sLall not extend
<br />or postpone the due date of the monthly payments, wlrich are referred to in pazagraph 2, or change the amount of such
<br />payment�. tlny �cess proceeds over an amount required to pay all outstanding iadebtedness under the Note and this
<br />Security Inslrument sl�all be paid to the entity legally eatiUed thetef,o.
<br />7. Charges to Borrower and Protecl3on of Lender's Rights in the Property. Borrower shall pay all
<br />govemmental or municipal charges, fines and im�sitions that are not included in paragraph 2. Bonower shall pay
<br />these obligations on time directly to the entity wlucfi is owed fhe paymen� If failure to pay would adversely affect
<br />Lender's inter�t in the Property, upon Lender's request Boixower shall promptly fiunish to Lender receipts
<br />evidencing these payments.
<br />If Bonower fails to ma[ce these paymenfs or the payments required by paragraph 2, or fails to perform any other
<br />covenants and agreements contained in this Security InsUtument, or there is a legal proceeding that may significantly
<br />affect Lender's rights in the Ptoperry (such as a procceding in bankruptcy, for condemnation or to enforce laws oc
<br />regulations}, then Lender may do and pay whatever is necessary to protect the value of the Praperty and Lender's
<br />rights in the Ptaperty, including payment of taaces, hazard insurance and other items mentioned in paragaph 2.
<br />Atry amounts disbursed by Lender under this paragraph shall become an addirional debt of Borrower and be
<br />secwed by fhis Security Instrument These amotmts 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 liett wluch has priority over this Security Insh�ument unless Bonower:
<br />(a) agrees in writing to the payment of the abligation seciued by the lien in a manner acceptabla to Lender; (b) contests
<br />in good faith the lien by, or defends against enforcement of the lien in, legal proceedings wluch in the Lender's
<br />opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the Iien an agreement
<br />salisfactory to Lender subordinating the liea to tUis SECUrity Inshument If Lender determines that any part of tha
<br />Properiy is subject to a lien wlrich may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Bonower shall satisfy the lien or taka one or more of tfie actions set forth above within
<br />10 days of the giving of notice.
<br />S. Feea. Lender may colle�t fees and charges suthorized by the Secretaty.
<br />9. Gronnda for Acceleration of Debt
<br />(s) Defanit Lender may, excepY as limited by regulations issued by the Secretary in the case of payment
<br />defaults, reqtrire immediate payment in full of all sums sec�ued by Uris Security Instnnnent if
<br />(i) Borrower defaults by failing to pay in £ull any monthlY PaYment required by tlus Security
<br />Instrument prior to or on the due date of the next monthly payment, or
<br />(ii) Bonower defaults by failing, for a period of tUirty days, to perform any other obligations
<br />contained in this Security Instrumeat
<br />@) Sale WitLoat Credit ApprovaL Lender ahall, ifpermitted by applicable law (including section 341(c�
<br />of the Garn-St Germain Depository InstiWtions Act of 1982, 12 U.S.C. 1701j-3(d)) and with the prior
<br />appmval of ifie Secretmy require immediate payment in full of atl s�mvs sacured by Uris Secvrity Inshn�t iF
<br />(i) All or part of the Propetty, or a beneficial interest in a trust owning all or part of the Property, is
<br />sold or otherwise transfened (other than by devise or descent), and
<br />(ii) The Ptoperiy is not occupied by the purcLaser or granise as his or her princigal residence, or the
<br />pwchaser or grantee does so occupy the Properiy, but his or her credit has not been approved in
<br />accordance with the requireme� of the Secretary.
<br />(c) No Waiver. If circumstances occar khat would permit Leader to require immediate payment in full,
<br />but Lea►der does not re�ire such �yments, i.end� dces �t waive its rights with respe�t to subsaqu�t ev�.
<br />(� RegulaHona of HUD Secretary. In many circumstances regulations issued by the Secretarywill limit
<br />Lender's righls, in the case of payment default�, to require irnmediate payment in fiill and foreclose if not
<br />Boaower Initia[s:
<br />ra umv vr �rtua� -meto �
<br />05/23/11 page 3 M 7 wK,w.d�nsgk.�om
<br />UIQI�I Ipll II �I II01I � I a a I I III01II�01I�
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