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Home My WebLink About0048 l a~h munthly~ in~tallment ior items (a), lb). ~?ncl (:1 ~hall equal one-t~~elith ot the annual a?nounts, a. rea~onahly~ e,timaticl h~ Lcncler, plu~ ar~ amount suitirient to maintain an additional balance ot~ not more than ~~ne-~ixth of the estimat~cl amount,. I I~e lull unnua! amount for each item shall be arrumulated b>~ Lender ~~ithin a period ending one month hefore an item H~ould h~.umr delinyuent. Lencirr.hall hold the amounts rollected in trust to pay items (a), (b), and before they be~ome delinquent. li at an>• time the total of the pa~~ments held by~ Lender t'or items (a), (b), and (cl, tugether ~~ith the future monthl~~ pa~~?nents f~~r such items pa~~able to Lender prior to the due dates of surh items, e~c~eds by more than one-sixth the estimated amount ,~t payments required to pay such items when due, and if payments on the Note are current, then I.ender shall either refund ~he e~ress over one-si~th of the estimated payments or credit the excess o~~er one-sixth of'the estimated pa~•ments to subsequent ~~a~~ments by Borro~~er, at the option of~ f3orrower. It~ the total of the payments made by Borrow~er tor item (a), (b), or (c) i. insufficient to pay the item ~~~hen due, then BorroH~er shall pay~ to Lender any amount necessary to make up the deficienc~~ ~~n or before the date the item becomes due. As useU ~n th~s ~erunt~~ instrument, "~erretar~• means rne ~ecreiary ui i-iuusing anu uruau ur~riuN~urn~ u~ i~;~ i~c~ ~le,ignee. Most Securit~~ Instruments insured by the Secretary are insured under programs which require advance payment of ~he entire mortgage insurance premium. If this Security Instrument is or ~+~as insured under a program w~hich did not require ad~ anre payment of the entire mortgage insurance premium, then each monthly payment shall also include either: (i) an installment ~~t the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly charge instead of a mortgage in,urance premium if this Securit~~ lnstrument is held by the Secretarp. Each monthly installment of the mortgage insurance E~remium shall be in an amount sufficient to accumulate the full annual mortgage insurance premium with Lender one month r~rior to the date the full annua! mortgage insurance premium is due to the Secretary, or if this Security lnstrument is held h> ~he Secretary, each monthl~~ charge shall be in an amount equal to one-twelfth of one-half percent of the outstanding principa! halance due on the Note. If Borro~~•er tenders to Lender the full pa}~ment of a!I sums serured by this Security Instrument, Borro~w~er's account shall he credited ~~~ith the balance remainic~g for all instalfinents for items (a), (b), and (c) and any mortgage insurance premium in~tallment that Lender has not become obligated to pay to the Secretary, and Lender shall promptly refund any excess fur.ds ~o Borro~~~er. Immediately prior to a foreclosure saie of the Property or its acquisition by Lender, Borro~ver's account shall '~c credited with any balance remaining for all installments for items (a), (b), and (c). 3. Application of Payments. All payments under paragraphs I and 2 shall be applied by Lender as follo«s: 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 Borro~ver paid the entire mortgage insurance premium N~hen this Securit}• Instrument was sign~d; Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance ~,remiums, 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 Other Hazard Insurance. Borrower shall insure a!I impro~~ements on the Property, ~~~hether no~~ in ~~i,tence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires in:urance. This insuranre shall be maintained in the amounts and for the periods that Lender requires. BorroH•er shall also insure all improvements on the Property, whether no~~~ in existence or subsequently erected, against loss by floods to the extent i reyuired by the Secretary~. All insurance shall be carried w~ith companies approved by Lender. The insurance policies and any ~ ,ene~~als shall be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to, Lender. i In the e~~ent of loss, Borrow•er shall give Lender immediate notice b}~ mail. Lender may make proof of loss ~f not made i ~romptly by Borrower. Fach insurance company concerned is hereby authorized and directed to make payment for such loss ~ ciirectly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may be applied ; b~ Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security Instrument, first to € afly delinquent amounts applied in the order in Paragraph 3, and then to prepayrnent of principal, or (b) to the restoration ~ :~r 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 Paragraph 2, or change the amount of such payments. Any e~cess insurance ~roceeds over an amount required to pa~~ all outstanding indebtedness under the Note and this Security lnstrument shall be ~ E~aid to the entity legally entitled thereto. ~ In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the e inqebtedness, all right, title and interest of Borrow~er in and to insurance policies in force shall pass to the purchaser. 6 ~ € 5. Preser~~ation and M1iaintenance of the Propert~~, Leaseholds. Borrou~er shall not cammit waste or destroy, damage or ~ ~ubstantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect _c.~_ ..~__a_ ..a a..r...~. r ..a,. ..i. ,.ti.~., ~ iuc j~ivj~ciiy t~ uic NiO}~ci?j' i~ ~ai,ai~i vi nvauuvi~cu v7 u~c ~vai~ iS ii~ u~~au~i. Li.~iu~i ~i~ay Qan~ ;~nSvi~av~., a:.iiv:~ av j,:v...L. ° and preserve such vacant or abandoned property. If this Security [nstrument is on a leasehold, Borrower shall comply with ~ the pro~~isions of the lease. if Borrower acquires fee title to the Propert~~, the leasehold and fee titte shall not be merged unless ~ Lender agrees to the merger in writing. r 6. Charges to Borrower and Proteciion of Lender's R9ghts in the Propertr~. Borro~~~er shall pay all go~~ernmental or municipal ~ ~harges, fines and impositions that are not included in Paragraph 2. Borrotiver shall pay these obiigations on tirt~e directly eo , the entity ~~~hich is ow~ed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's ' reyuest Borrower shall promptly~ furnish to Lender receipts evidencing these payments. If Borrower fails to make these pa}•ments 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 proceeding that may ~ignificantl}• affect Lender's rights i~ the Pro~erty (such as a proceeding in bankruptcy, for condemnation or to enforce laws or reguiations), then Lender may do and p~p H~hate~~er is necessary to protect the ~•alue of the Propert}• and Lender's rights in the Property, including payment ut ta~es, hazard insurance and other items mentioned in ParagraPh 2. An}• amounts disbursed by Lender under this Paragraph shall become an additional debt of Borro~+~er and be secured t~~ this Security Instrument. These amounts shall bear interest from the date of disbursement, at the Note rate, and at the = option of Lender, shail be immediatel}• due and payable. ~ 7. Condemnatior~. The proceeds of an}~ aw~ard ar claim for damages, direct or conseyuential, in connection ~~~ith any ~ ~ondemnation or other taking of an~~ part of' the Property~, or for com~e~~ance in place of condemnation, are hereby assigned ` and shall be paid to Lender to the c~tent of the full amount of the indebtedness that remains unpaid under the Note and this . Security~ Instrument. Lender shall appl} such proceeds to the reduction of the indebtedness under the Note and this Securit~~ Inttrument, first to an}• cielinquent amounts applied in the order pravided in Varagraph 3, and then to prepayment of principal. ~ ~u~e < <,J a ~ R fi ! t,~ PACE ~O~K - , _ , _ - - - ~ . ~Y~ ~