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<br />In the ev�t of foreclostue of this Secm�ity Instrument or oth� transfer of title to the Property fl�at e�dinguishes the
<br />indebtedness, all right,litle and interest of Boaower in and to m�uance policies in force shall paa to the purchas�.
<br />5. Occnpancy, Preservaflon, Maintenance and Proteclion of the Property; Borrower's Loan Applicatlon;
<br />Leaseholds. Borrower shall occupy, establish, and use the Properiy as Bonower' s principal residence wiUvn sixry
<br />days after the execution of this Security Instrument (or wiUvn aixty days of a Iater sale or tranafer of the Praperty)
<br />and shall continue to occupy the Property as Bortower's principal residence for at least one year after the date of
<br />occupancy, unless Lender determines that requirement will cause undue hardship for Borrower, or unless extenuating
<br />circumstances exist wlrich are beyond Borrower's co�ol. Borrower shall notify �.ender of any extenuating
<br />circumstances. Bonower shall not commit waste or destray, damage or substantially change the Property or allow
<br />the Property to detetiorate, reasonable weat and teat excepted. Lender may inspect the Property if the Property is
<br />vacant or abandoned or the loan is in default Lendet may take reasonable action to protect and presetve such vacant
<br />or abandoned Property. Borrower shall also be in default if Borrower, during the loan application process, gave
<br />materially false or inaccurate information or statements to Lender (or failed to provide I.ender with any matetial
<br />information) in coffie�tion with the loaa evidenced by the Note, including, but not limited to, representations
<br />concerning Bottower' s occupancy of the Ptoperty as a principal residence. If Uvs Security Instrume� is on a
<br />leasehold, Borrower shall comply with the provisions of the lease. If Bonower acqaires fee title to the Property, the
<br />leasehold and fee title shall not be merged unless Lender agrees to ihe merger in writing.
<br />6. Condemna�loa The proceeds of any award or claim for damages, direct or consequential, in connection
<br />with any condemnation or other taldng of any part of the Property, or for coaveyance in placx of condemnation, aze
<br />hereby assigned and shall be paid to Lender to the extent of the full amount of the indebtedness that remains impaid
<br />under the Note and this Security Instrument Lender shall apply such proceeds to the reduction of the indebtedn�s
<br />under the Note and this Security Instrument, first to any delinquent amount� applied in the order provided in
<br />paragraph 3, and then to prepayment of principal. Any application of the proceeds to the principal shall not extend
<br />or postpone the due date ofthe monthly payments, wluch atereferredto in paragraph 2, or change the amount of such
<br />PeYments. A� excess proceeds over an amount required to pay a11 outstanding indebtedness undet the Note and this
<br />Security Insttument shall be paid to the eatity legally enfltled thereto.
<br />7. Charges to Borrower and Protecdon of Lender's Rightv in t6e Property. Borrower shall pay all
<br />grnetnmental or municipal charges, fines aud impositions that are not included in paragraph 2. Bonower shall pay
<br />these obligations on time directly to the enflty 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 fiunish 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 petform any othet
<br />covenants and agreements contained in this Secnrity Instrument, or there is a legal proceeding that may significanfly
<br />affect Lendet's rights in the Propetty (such as a proceeding in banlauptcy, for condemnation or to enforce laws or
<br />regulations), then Lender may do ffid pay whatever is necessary to protect the value of the Property and Lendet' s
<br />rights in the Property, including payment of taxes, hazard insurance and other items mentioned in paragraph 2.
<br />Any amount� disbursed by Lender under this paragraph shall become an additional debt of Borrower and be
<br />seciued by this Secwity Inshrument. Theae amounts ahall bear intetest from the date of disbursement at the Note rate,
<br />and at the option of Lender shall be immediately due and payable.
<br />Bonower shall promptly discharge any lien wlrich has priority wer Uvs Security Instrumem unless Bonower:
<br />(a) agrees in writing to the payment of the obligalion secwedby the lien in amanner acceptable 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 lien an agreement
<br />satisfactory w Lender subordinating the lien to this Security Instrument, If Lender determines that any part of the
<br />Properiy is subject to a lien w}rich may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within
<br />10 days of the giving of notice.
<br />& Feea. Lender may collect fee.s and chazges authorized by the Secretary.
<br />9. Gronnds for AcceleraHon of Debt
<br />(a) Defaolt 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 seciued by this Security Inslnmient if:
<br />(i) Borrower defaults by failing to pay in full any monthlY PaY�►ent required by this Security
<br />Instrument prior to or on the due date of the aext monthly payment, or
<br />(ri) Borrower defaults by failing, for a period of Uvrty days, to perform any other obligations
<br />contained in this Security Instrument
<br />(b) Sale Withoat Credit Approval Lender shall, if permitted by applicable law (including section 341(c�
<br />of the Garn-S� Germain Depository Instihrtions Act of 1982, 12 U.S.C. 1701j-3(d)) and with the priar
<br />approval of the Ser,retary, requira i�adiete payment in full of ell sinns sectued by this Se�utity indnm,Pnt j�
<br />(i) All or part of the Properry, or a beneficial interest in a trust owning all or part of the Property, is
<br />sold or otherwise transferred (othet than by devise or descent), and
<br />(ii) The Property is not occupied by the purchaser or grantee as his or her principal residence, or the
<br />purchaser or grantee dces so occupy the Properry, but his or her ctedit has not b�n approved in
<br />accordance with the requiremeats of the Secretary.
<br />(c) No Waiver. If circumstances occur that would permit Lender to require immediate payment in full,
<br />but Lender does not re�ire suc]� paymenls, Le,nd� does �t waive its rights with r�pec.t to subse�aent ev�.
<br />(� Regalafions of HUD S�retary. In many circ�stances regulations issued by the Sectetarywill limit
<br />Lender' s rights, in the case of �yment defa�ilts, to require immediate payment in full and foreclose if not
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