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<br />darnage or substanti�lly chaa�e the Properiy or allow the Property to deteziorate, reasonable wesr and tear
<br />excepted. Lender may inspect the Property if the Property is vacant or abandoned or the loan is in defautt.
<br />Leader may tak� reasonabie aclaon to protect and preserve such vacant or abandoned Property. Borrawer
<br />sha11 also be ut default if Borrower, during the loan application pracess, gave materiaily false or inacaurate
<br />information or statements to T.ender (or failed to provide Lender with any matenai information) in
<br />connection with the Io�n evidenced by fhe Note, inctuding, but not limited to, representations cancerning
<br />Botrower's occupancy of the Property as a prinaipal residence. If this Security Insicument is on a leasehold,
<br />Borrower shall comply with the provisions o� the lease. I£ Borrower acquires fee titi� to the Propezty, the
<br />leasehold and fee titIe sbatl not ba merged untess Z.ender agrees to the merger in writing.
<br />6. Condemnation. T1se procec�is of any award or olaim for damages, direct or consec�uentiat, in
<br />ao�mection with any condemnation or oth�r taking of any part of the Property, or for conveyance in place of
<br />cand�nation, are hereby assigned and shalt be paid to Lender to the extent of tl�e full amount af the
<br />ind$btedness that remains unpaid under the Note and this Security Insttvment Lender shall apply such
<br />proceeds to the reduction of the indebtedness under the Note ancl this Security Instrument, fcrst to sny
<br />delinquene amovnts applied in the order provided ia Paragraph 3, attd then to prepayment of principal. Any
<br />applicatian af the ptoceeds to the princ�pal shall nor extend or postpone tlae due date of the monEhly
<br />paymettts, which are refenred ta in Paragraph 2, ar chatige fhe amount of such p�ym�Cs. Any excess
<br />proceeds over an amount requircd ta pay al� ou#standiag indebtedn�s under the Note and t3iis Security
<br />Instrum�rt shall be paid to the entity legally entitled the�to.
<br />7. Chargea ta Borrower and JProteckion of Lender's R3ghts tn the Prop erty. Barrower shall pay
<br />aI1 governmental or muaicigal charges, fines and ampasirions that are not included in Para�raph 2. Bonower
<br />s�all pay these obligations on time directly to the entity whiclt is owed the payment if faalure to pay would
<br />adversely affect �,ender's interest in the Pro�rty, upon Lende�`s request Barrower shail promptly fuinish to
<br />Lender receipts evidencing these payments.
<br />If Borrower faiL9 W m.ake these pa}+ments or ihe payments required by Paragraph 2, or fails to
<br />perforni any oth�r covenants and agreements contained in this Secunty Inst�ument, or there is a lsga]
<br />pmaeeding that may signi�canfly affect Lende�'s rights in the Property (such as a procecding in banlcruptcy,
<br />for conde�nna�on or to enforce laws or regulations), then Lender may do and pay wt►atever is neces.sary to
<br />pmtect the value of the Property and Lender's rights in the Properry, including paymerzt o£ ta�tes, hazard
<br />insurance and oYher item� mentioned in Paragapb 2.
<br />.Any amouuts disbursed by Lender under this Paragraph shail become an addicional debt af
<br />Borrower and be secixred by tizis Security Ins�um�t. T�►ese amouzsts shall bear interest fram the date of
<br />disbursement at the Note rate, and at the optian of Lendcr, shali be immediately due and payable.
<br />Barrower shall promptly discharge any lien v++hich has priority over this Se�ctuity Instrum�nt unless
<br />Borrawer: {a) agrces in writing to the payment of the obtigation secured by the lien in a manncr acceptabte w
<br />Lenr3er; {b) contests in good faith tha lien by, or defends against anforcemettt of the lien in, legal u►gs
<br />which in the Lend�'s opinian operate to prevent the enforcement of tk►e lien; or {c} secures fmm e. hotder of
<br />t�e lien an agreement satisfactory W Lender subordinating the lien to this Sec'urity Instrument. If Lend�r
<br />detern�ines that any paxt of the Property is subject to a Iien wiuch may attain pnority over ti�is Security
<br />Insizument, Lender rnay give Borrower a notice identifymg the lien. Barro�ver shaJt satisfy the lien or take
<br />one or more af tiie aations set forth abave within i 0 days of tha giving aFnotice.
<br />8. Fees. I.ender may collect fees and charges authorized by the Seoretary.
<br />9. Grocuids for Acceleration af Deb�.
<br />{�) Default, Leader may, excegt as lixnited hy regulations issued by the Secrecary in tha case of payment
<br />defavlts, require immed3ate paytnent in full of all sums secw�ed by this Security Instrum�t if
<br />(i} Borrower defaults by failing to pay in fuit any monthly payment required by tlua Security Instrument prior
<br />W or an tlie due date ogths next mcmthiy payment, or
<br />{ii) Barrower defaults by failing, for a penod of tturty days, to perform any other obligations cantained in this
<br />Secvrity Instnunent. •
<br />(b} Sals �Yithaut Crcdit Appxov$1. I.ender sl�all, if permi�ted by applicable law (including section 34l (d}
<br />of the Garn-St Germain Depositary Tnatitutions Aat of 1982, 12 U.S.C. 1'lUl j-3(d)) and with the pnor
<br />approval of the Secretary, require immediate payment in full of ail che sums secured by this Seciuhty
<br />Instruxnent if
<br />{i) AIl ar pazt af the Pr , or a beneficial inter�t in a trust owning all or part of ehe Property, is sold or
<br />otheiwis� transferr� {o or than by devise or deseen�}, ax�d
<br />(ii) 'Ihe Property is not accupied by the pwcheser or gzautee as his or her prineipal residence, or the
<br />purchaser or g�antee does so oecupy tha Pmperty, but 4sis or her oredit has not been approved in accordance
<br />with the z�equire�nettts of the Secretary.
<br />(e) No Vfls3ver. If circumstances occur that would permit Lender to require immediate payment in fizll, but
<br />L�nder doe.s aot require such payments, Lender does nat waive its rights with respect ta subsequent events.
<br />(d) Regalat3ons o� HVD Secretary. In many circumstances reguletions issued by tha Secretary will limit
<br />I.ender's rights, in the case of gayment defaults, ta reyusra imm�iate pay�ment in ftr�l and £or�lose if nat
<br />paid Ttus Security Instnzment does not authoctize acceleration or foreclosure if not permitted by regulatians
<br />of tha Secretary.
<br />(e) Mortgage Not Insured. Borrawer agrees fhat if this Security Instrument and the Note ara noc d�ermined
<br />w be eligble for insurance under khe National Housing Act within 4�1 Days from the date hereof, Lender
<br />may, at its opaon require immediate payment in full af all sums aecured by this Security Insh A
<br />wcitten statement of any anthorized age.�t of the Secretary dated subsequent ta 9U Days from the date
<br />hereof, declining to inslure tiiis Security Instrument and the Note, shall be deemsd conciusive proof of such
<br />ineligbility. Notwitlzstanding the foregoing, this opkion may not be exercised by Lender when the
<br />unavaitability of insurance is solely due ta Lender's failwre to remit a mortgage insurance premium w the
<br />Secretary.
<br />1fl. Reiastatex�cent. Borrowcr has a right #o be reinstated if Lender has required 'unmediate payment
<br />in full because of Borrowet's failixre to pay an amount dus under the Note or this Security Instnunent. 'This
<br />right applies even after foreclosure proceedings ate instituted. To rerastate the Seaurity Instrument, Borrower
<br />sha11 tender ia a h.zmp sum xtl atnounts required to bring Barrower's account current ancluding, to the extent
<br />they are obligations af Borr�wer under this Security Instrume�nt, foreclosure cos1� and reaso�able and
<br />custarnary attomey's fees and sxpenses properiy associa�ed with the foreclosure proceeding. Upan
<br />reinstatement by Borrower, this Security T.�strupnent ar,d the obligations that it secures shatl remain ia effecE
<br />as if T,ender had not required immediate payznent in full. Howevsr, Lender is not required to permit
<br />reuxst�.temeni if: {i) I,ender has accepted reinstatement after the cammencement of foreolosure pmceedings
<br />withiu two years immediaiely preaeding #he oammenoemee�t of a cu�nt foreclosure proceeding, {ii}
<br />ib236.CV {911I) 4li6t65 Fage 3 of S
<br />GQ'CA(0419StTe)
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