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<br />2 0110882�
<br />damage or substantially change the Property or allow the Property to
<br />excepted. Lender may inspect the Property if the Property is vacant o
<br />Lender may take reasonable action to protect and preserve such vac�
<br />shall also be in default if Borrower, during the loan application proce;
<br />information or statements to Lender (or failed to provide Lender
<br />connection with the loan evidenced by the Note, including, but not 1
<br />Bonower's occupancy of the Properiy as a principal residence. If this
<br />Borrower shall comply with the provisions of the lease. If Bonower
<br />leasehold and fee title sha11 not be merged unless Lender agrees to the n
<br />6. Condemnation. The proceeds of any awazd or claim fot
<br />connecrion with any condemnation or other taking of any part of the P:
<br />condemnation, are hereby assigned and shall be paid to Lender to
<br />indebtedness that remains unpaid under the Note and this Security
<br />proceeds to the reduction of the indebtedness under the Note and 1
<br />delinquent amounts applied in the order provided in Paragraph 3, and
<br />application of the proceeds to the principal shall not extend or po
<br />payments, which aze referred to in Pazagraph 2, or change the am
<br />proceeds over an amount required to pay all outstanding indebtedne
<br />deteriorate, reasonable weaz and tear
<br />- abandoned or the loan is in default.
<br />nt or abandoned Property. Borrower
<br />s, gave materially faLse or inaccurate
<br />with any material information) in
<br />imited to, representations concerning
<br />3ecurity Instrument is on a leasehold,
<br />acquires fee title to the Property, the
<br />ierger in writing.
<br />damages, direct or consequential, in
<br />•operty, or for conveyance in place of
<br />he extent of the full amount of the
<br />Instrument. Lender shall apply such
<br />his Security Instrument, first to any
<br />then to prepayment of principal. Any
<br />�tpone the due date of the monthly
<br />�unt of such payments. Any excess
<br />ss under the Note and this Security
<br />Instrument shall be paid to the entity legally entitled thereto.
<br />7. Charges to Borrower and Protection of Lender's Rights in the Properly. Borrower shall pay
<br />all governmental or municipal charges, fines and impositions that aze not included in Paragraph 2. Borrower
<br />sha11 pay these obligations on time directly tq the entity which is owed the payment. If failure to pay would
<br />adversely affect Lender's interest in the Property, upon Lender's request Borrower shall promptly fiunish to
<br />Lender receipts evidencing these payments.
<br />If Borrower fails to make these payments or the payments required by Pazagraph 2, or fails to
<br />perform any other covenants and agreements contained in this Secunty Instrument, or there is a legal
<br />proceeding that may si�cantly affect Lender's rights in the Property (such as a proceeding in bankruptcy,
<br />for condemnation or to enforce laws or regulations), then Lender may do and pay whatever is necessary to
<br />protect the value of the Property and Lender's rights in the Property, including payment of taaces, hazard
<br />insurance and other items mentioned in Paragraph 2.
<br />Any amounts disbursed by Lender under this Paragraph sha11 become an additional debt of
<br />Borrower and be secured by this Security Insirument. These amounts shall bear interest from the date of
<br />disbursement at the Note rate, 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
<br />Borrower. (a) agees in writing to the payment of the obligation secured by the lien in a manner acceptable to
<br />Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings
<br />which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of
<br />the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender
<br />determines that any part of the Property is subject to a lien which may attain pnority over this Security
<br />Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or ta.ke
<br />one or more of the actions set forth above within 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) Default. 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 Security Instrument if:
<br />(i) Borrower defaults by failing to pay in full any monthly payment required by this Security Instrument prior
<br />to or on the due date of the next monthly payment, or
<br />(ii) Borrower defaults by failing, for a penod of thirty days, to perform any other obligations contained in this
<br />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 the sums secured by this Security
<br />Instrument if:
<br />(i) All or part of the Property, or a Ueneficial interest in a trust owning all or part of the Property, is sold or
<br />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 Properiy, but his or her credit has not been approved in accordance
<br />with the requirements of the Secretary.
<br />(c) No Waiver. If circumstances occur that would permit Lender to require imxnediate payment in full, but
<br />Lender does not require such payments, Lender does not waive its rights with respect to subsequent events.
<br />(d) Regulations of HUD Secretary. In many circumstances regulations issued by the Secretary will limit
<br />Lender's rights, in the case of payment defaults, to require immediate payment in full and foreclose if not
<br />paid This Security Instrument does not authorize acceleration or foreclosure if not permitted by regulations
<br />of the Secretary.
<br />(e) Mortgage Not Insured. Borrower agrees that if this Security Instrument and the Note are not determined
<br />to be eligble for insurance under the National Housing Act within 90 Days from the date hereof, Lender
<br />may, at its option require immediate payment in full of all sums secured by this Security Instrumen� A
<br />written statement of any authorized agent of the Secretary dated subsequent to 90 Days from the date
<br />hereof, declining to insure this Security Instrument and the Note, shall be deemed conclusive proof of such
<br />ineligibility. Notwithstanding the foregoing, this option ma.y not be exercised by Lender when the
<br />unavailability of insurance is solely due to Lender's failure to remit a mortgage inc�rance premium to the
<br />Secretary.
<br />10. Reinstatement Borrower has a right to be reinstated if Lender has required immediate payment
<br />in full because of Borrower's failure to pay an amount due under the Note or this Security Instrument. This
<br />right applies even after foreclosure proceedings are instituted. To reinstate the Security Instrument, Bonower
<br />shall tender in a lump sum all amounts required to bring Borrower's account current including, to the extent
<br />they are obligations of Borrower under tUis Security Instrument, foreclosure costs and reasonable and
<br />customary attorney's fees and expenses properly associated with the foreclosure proceeding. Upon
<br />reinstatement by Borrower, this Security Instrument and the obligations that it secures shall remain in effect
<br />as if Lender had not required immediate payment in full. However, Lender is not required to permit
<br />reinstatement if: (i) Lender has accepted reinstatement after the commencement of foreclosure proceedings
<br />within two years immediately preceding the commencement of a current foreclosure proceeding, (ii)
<br />16256.CV (9/11) 905706 Page 3 of 5
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