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<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that e�ctinguishes the
<br />indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
<br />5. Occupancy, Preservation, Maintenance and Protection of the Properly; Borrower's Loan Application;
<br />Leaseholds. Bonower shall occupy, estabiish, and use the Property as Borrower' s principal residence within sixty
<br />days after the execution of this Security Instrument (or within sixty days of a later sale or transfer of the Property)
<br />and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of
<br />occupancy, unless Lender determines that requirement will cause undue hazdship for Borrower, or unless extenuating
<br />circumstances exist which are beyond Borrower' s control. Borrower shall no6fy Lender of any extenuating
<br />circumstances, Borrower shall not commit waste or destroy, damage or substantially change the Pxoperty or allow
<br />the Property to deteriotate, reasonable wear and tear excepted. Lender may inspect the Property 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 Property. Bonower sha!! also be in default if Borrower, dwing the loan application process, gave
<br />materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material
<br />information) in connection with the loan evidenced by the Note, including, but not limited to, representations
<br />concerning Borrowet's occupancy of the Property as a principal residence. If this Security Instruxnent is on a
<br />leasehold, Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the Property, the
<br />leasehold and fee fifle 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 connection
<br />with any condemnation or other taking of any part of the Property, or for conveyance in place of condemnation, aze
<br />hereby assigned and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid
<br />under the Note and this Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness
<br />under the Note and Uus Security Instrument, first to any delinquent amounts 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 of the monthly payments, which are referred to in paragraph 2, or change the amount of such
<br />payments. Any excess proceeds over an amount required to pay all outstanding indebtedness under the Note and this
<br />Security Instrument shall be paid to the enrity legally entitled thereto.
<br />7. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all
<br />governinental or municipal chazges, fines and impositions that aze not included in pazagraph 2. Borrower shall pay
<br />these obligations on time directly to the entity which is owed the payment. If failure to pay would adversely affect
<br />Lender's interest in the Property, upon Lender's request Bonower shall promptiy furnish to Lender receipts
<br />evidencing these payments.
<br />If Bonower fails to make these payments or the payments required by paragraph 2, or fails to perform any other
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly
<br />affect Lender' s rights in the Property (such as a proceeding in bankruptcy, for condemnarion or to enforce laws or
<br />regulations), then Lender may do and pay whatever is necessary to protect the value of the Property and Lender's
<br />rights in the Property, including payment of taxes, hazard insurance and other items mentioned in pazagraph 2.
<br />Any amounts disbursed by Lender under this pazagraph shall become an additional debt of Borrower and be
<br />secwed by this Security Instrwnent. These amounts 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 lien which has priority over this Security Instrument unless Borrower:
<br />(a) agrees in writing to the payment of the obligarion secured by the lien in a manner acceptable to Lender; (b) contests
<br />in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which 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 />safisfactory to Lender subordinating the lien to this Securiry Instrument. If Lender determines that any part of the
<br />Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />norice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set Forth above witl�in
<br />10 days of the giving of notice.
<br />8. Fees. Lender may collect fees and chazges authorized by the Secretary.
<br />9. Grounds for Acceleration of Deb�
<br />(a) Defaul� 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 secured by this Securiry Instrument if:
<br />(i) Borrower defaults by failing to pay in full any monthly payment required by this Security
<br />Instrument prior to or on the dve date of the next monthly payment, or
<br />(ii) Borrower defaults by failing, for a period of thirty days, to perfortn any other obligations
<br />contained in this Security Instrument.
<br />(b} Sale Without Credit ApprovaL Lender shall, if permitted by applicable law (including section 341(d)
<br />of the Garn-St. Germain Depository Institutions Act of 1982, 12 U.S.C. 1701j-3(d)) and with the prior
<br />approval of the Secretary, require immediate payment in full of all sums sec�rced by this Seciairy Instnunent if•
<br />(i) All or part of the Property, or a beneficial interest in a trust owning all or part of the Property, is
<br />sold or otherwise transferred (other 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 does so occupy the Property, but his or her credit has not been approved in
<br />accordance with the requirements of the Secretary.
<br />(c) No Waiver. If circumstances occur that would pernut Lender to require immediate payment in full,
<br />but Lender does not require such payments, L�der does not waive its rights with respect to subsequent events.
<br />(d) Regulations of HiJD Secretary. In many circumstances regulations issued by the Secretary wili lnnit
<br />Lender' s rights, in the case of payment defaults, to require immediate payment in ful! and foreclose if not
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