HomeMy WebLinkAbout1736 ~•c
Each monthly instaiiment for items (a), (b), and (c) shall equal one-twelfth of the annual amounts, as reasonably estimated
by l.ender. plus an amount sufficient to maintain an additional balance of not more than c•ne-sixth of the estimated amounts.
The full annual amount for each item shall be accumuiated by Lender within a period ending one month before an item woul~i
become delinquent. Lender shall hold the amounts collected in trust to pay items (a). (b). and (c) before they become delinquent.
IC at any time the tocal of the payments held by Lender for items (a), (b), and {c). together witfi the future monthly payments
for such items payable to Lender prior to the due dates of such items, exceeds by more than one-sixth the estimated amount
of~ payments required to pay such items when due, and if payments on the Note are current, then Lender shall either refund
che excess over one-sixth of the estimated payments or credit the excess over one-sixth of the estimated payments to subsequent
payments by Borrower, at the option of Borrower. if the total of the payments made by Borrower for item (a), (b), or (c)
is insufficient to pay the item when due, then Borrower shall pay to Lender any amount necessary to make up the deficiency
on or before the date the item becomes due.
As ~sed in this Security Inst~ument, "Secsetary" means the Secretary of Housing and Urban Devetopment or his or her
designee. Most Security Instruments insured by the Secretary are insured under programs which require advance payment of
the entire mortgage insurance premium. If this Security Instrument is or was insured under a program which did not require
advance payment of the entire mortgage insurance premium, then each monthly payment shall also include either: (i) an instal?ment
of the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage
insurance premium if this Security lnstrument is he{d by the Secretary. Each monthly installment of the mortgage insurance
premium shall be in an amount sufficient to accumulate the full annual mortgage insurance premium with Lender one month
prior to the date the full annuat mortgage insurance premium is due to the Secretary, or if this Security Instrument is held
by the Secretary, each monthly charge shall be in an amount equal to one-twelfth of one-half percent of the outstanding principal
balance due on the Note.
If Borrower tenders to Lender the full payment of all sums secured by this Security Instrument, Borrower's account shall
be credited with the balance remaining for all installments for items (a), (b), and (c) and any mortgage insurance premium
instal{ment that Lender has not become obiigated to pay to the Secretary, and Lender shall promptly refund any excess funds
to Borrower. lmmediately prior to a foreclosure sale of the Property or its acquisition by Lender, 8orrower's account shall
be credited with any balance remaining for all installments for items (a), (b), and (c).
3. Application of Paymeats. All payments under paragraphs 1 and 2 shall be applied by Lender as foljows:
First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretary
instead of the monthly mortgage insurance premium, unless Borrower paid the entire mortgage insurance premium when this
Security Instrument was signed;
Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and ather hazard insurance
premiums, as required;
Third, to interest due under the Note;
Fourth, to amortization of the principal of the Note;
Fifth, to late charges due under the Note.
4. Fire, Flood and 016er H~rd Insurence. Borrower shall insure all improvements on the Property, whether now in
existence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires
insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. 8orrower shall also
insure all improvements on the Psoperty, whether now in existence or subsequently erected, against loss by floods to the extent
required by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance poficies and any
renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to, Lender.
In the event of toss, Borrower shall give Lender immediate notice by mail. Lender may make proof of toss if not made
promptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss
directly to Lender, instead of to Borrower and to Lender jointiy. All or any part of the insurance proceeds may be applied
'f by Lender, at its optian, either (a) to the reduction of the indebtedness under the Note and this Security Instrument, first to
any delinquent amounts apptied in tfie order in Paragraph 3, and then to prepayment of principal, or (b) to the restoration
; or repair of the damaged property. Any application of the proceeds to the principal shall not extend or postpone the due date
of the monthly payments which are referred to in Parag~aph 2, or change the amount of such payments. Any excess insurance
' proceeds over an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be
paid to the entity legally entitled thereto.
4 In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the
i indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser.
~
~ 5. Preservatioa and MAintenance of the Property, LeASeholds. Borrower shall not commit waste or destroy, damage or
~ substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect
E the property if the property is vacant or abandoned or the loan is in default. Lender may take reasonable action to protect
E and preserve such vacant or abandoned property. If this Security Instrument is on a leasehold, Borrower shall comply with
~ the provisions of the lease. If Borrower a~quires fee title to the Property, the leasehold and fee title shall not be merged unless
~ Lender agrees to the merger in writing.
~
; 6. Charges to Borrower and Protection of Lender's Rights in the P~operty. Borrower shall pay all governmental or municipal
~ charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to
~ the entity which is owed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's
request Borrower shall promptly furnish to Lender receipts evidencing these payments.
If Borrower fails to make these payments or the payments required by Paragraph 2, or fails to perform any other covenants
and agreements contained in this Security Instrument, or there is a legal ptoceeding that may significantly affect Lender's rights
in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender may
do and pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, including payment
of taxes, hazard insurance and other items mentioned in Paragraph 2.
~ Any amounts disbursed by Lender under this Paragraph shail become an additional debt of Borrower and be secured
~ by this Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the
~ option of Lender, shall be immediately due and payable.
~
~ 7. Condemns~tion. The proceeds of any award or claim for damages, direct or consequentsai, in connection with any
~ condemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned
~ and shall be paid to Lender to the extent of the fuil amount of the indebtedness that remains unpaid under the Note and this
~ Security Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Security
` [nstrument, first to any delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment of principal.
Page 2 oj I 0~~~^J /
eo~c l P~c~:_ _
:
~
~ _ - - -
~ _ - -