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Home My WebLink About0157 t.a~h nwnthl~ in,~alim~nt lor item~ lal. !b), .?nci 1~) ~hall eyual ~~ne-t~~eltth of the annual anwunt~, a~ reasunabl~ e~tin~ated h~ LrnJer. {~lu, ai~ amoun[ ,uftirirnt to maintain an additiunal balanc~ of nut mure than c~nr-~ixth ot thr ~~timate~l amuunt.. l h~~ lull :~unua! amuunt for ~arh item.hall be acrumulatcd b}• Lender ~~ithin a{~criuci eneiing one n~onth betc~r~ an item ~~ould !~,.umr :irlinyuent. 1_cn~ler ,hall hol~i the amounts ~oilected in trust to pa)~ items (a), (b), and i~1 belore the>~ berume d~linyuen[. It at an~ time the total i~f~ the {~a~ments held by Lender tor ite~ns (al, lb). and (cl, t~~geth~r ~~ith the future munthly~ pa~~mentti . t~~r ,u~h item, {~a~abie to l.ender prior to the due dates of~ such items, excceds b~ more than one-sixth the estimated amount ,~t ~~a>ment~ r~yuirc~l to pay such items ~~hen due, and if payn~ents on the Note arr ~urrent, then l~ender shall either refund ~I~r ~x~e„ u~er one-si~th of the estimated pa}•ments or credit the excess o~'er one-sixth of the estimated payments to subseyuent ~~;~~mcnts by Borro~ti~er, at the option of ~3orro~~er. It the total ot~ th~ pa>~ments made b~• Borro~~~er for item (a), (bl, or (c) in,utficient to pa~• the item ~~~hen due, then Borro~~cr shall pa~~ to Lender an~~ amount neressar~~ to muke up the defi~ien~y ~~r bet~ure thc date the item beromes due. :'~ti used in this Securit~~ Instrument, "Secretary" means the Secretary ot Housing and Urban De~~elopment or his or her ,i~.ignec. ~1o;t Securit~~ lnstruments insured b~~ the Secretar~• are insured under programs ~~~hich require ad~~ance pa>•ment of ~hr ~ntire mortgage insuranre premium. If this Security lnstrument is or H~as insured under a program ~~~hirh did not require .i.l~ anre pa~~ment of the enure mortgage insurance premium. then earh monthl~• pa~~ment shall also include either. (i) an installment ,,t the annual mortgage insurance premium to be paid by Lender to the Se~retary, or (ii) a monthly charge instead of a mortgage i~~,uranre premium if' th~s Security Instrument is held b>~ the Secretar~•. Each monthl~~ installment of the mortgage insurance ,,r~mium shall be in an amount suificient to accumulate the full annual mortgage insurance premium ~~~ith Lender one month E,rior to the date the fuil annual mortgage insurance premium is due to the Secretar}~, or if this Securit~• lnstrument is held 1~~ the Secretary~, each monthly charge shall be in an amount equal to one-t~~elfth of one-half percent of the outstanding principal t~.~lanre due on the Note. lt~ Borro~~~er tenders to l.ender the full pa}•ment of all sums secured by this Securit}~ Instrumen[, Borro~~~er's arcount shall i~r crcdited ~~ith the balance remaining for all instailments for items (a), (b), and (c) and an}• mortgage insurance premium in,tallment that Lender has not become obligated to pay eo the Secretary, and Lender shall prompti}~ refund anp excess funds <<~ l3orrower. lmmediatel}~ prior to a foreclosure sale of the Property or its acquisition b~• Lender, Borro~~~er's account shalf ' t~~ rredited ~+~ith an~~ balance remaining for all installments for items (a), (b), and (c). 2 Annlirotinn ni P~a~mPntc_ All navmPn~c under naraeraohs 1 and 2 shall be applied b~• Lender as follo~.~s: .:f.~...~......... - - r . . F=irst, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the Secretar~~ in~tead of' the monthly mortgage insurance premium, unless Borro~cer paid the entire mortgage insurance premium ~~•hen this 5e~urity Instrument N~as signed; Second, to any taxes, special assessments, Ieasehold pa~~ments or ground rents, and fire, tlood and other hazard insurance ,,remiums, as required; - Third, to interest due under the No[e; Fourth, to amortization of the principal of the Note; Fitth, to late charges due under the Note. ~l. Fire. Flood and Other Hazard Insurance. Borro~ti~er shall insure all improvements on the Property, ~~~hether no~~~ in ~~isten~e or subsequently erected, against any hazards, casualties, and contingencies, including fire, for ~vhich Lender requires in,urance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borro~~~er shall also i;,,ure all improvements on the Property, whether no~v in existence or subsequentfy erected, against loss by floods to the extent ;~yuired b}• the Secretary. Al! insurance shall be carried ~~~ith companies appro~~ed by Lender. The insurance policies and an~~ r~ne~vais shall be held by Lender and shall include loss payable c(auses in favor of, and in a i'orm acceptable to, Lender. ~ In the e~~ent of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made ~ E,romptly by Borro~~~er. Each insurance company concerned is hereby authorized and directed to make payment for such loss ! ;iirectl~~ to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds ma~~ be applied ! i~~ Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security lnstrument, first to ~ .:n~ delinquent amounts appiied in the order in Paragraph 3, and then to prepayment 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 € ut the monthly payments which are referred to in Paragraph 2, or change the amount of such payments. An}• excess insurance ,-~roceeds o~~er an amount required to pay all outstanding indebtedness under the Note and this Securit}~ Instrument shall be ~ 1~aid to the entity~ legally entitled thereto. ln the e~~ent of foreclosure of this Securit}~ Instrument or other transfer of title to the Propert}~ that extinguishes the in~i~btedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser. 5. Preservation and Maintenance of the Propert~~. Leaseholds. Borrower shall not commit ~~~aste ar destro}~, damage or ~ubstantially change the Property or allow the Property to deteriorate, reasona~le w~ear and tear excepted. Lender ma}• inspect ;he property if the propert}• is vacant or abandoned or the loan is in default. Lender ma>~ take reasonable action to protect and preser~~e such vacant or abandoned property. If this Security Instrument is on a leasehold, Borro~ti•er shall comply «~ith ,he pro~isions of the lease. If Borro«~er acquires fee title to the Property, the leasehold and fee title shall not be merged unless ~ I ender agrees to the merger in writing. ~ 6. Charges to l3orrower and Protection of i.ender's Rights in the Propert}~. Borrou~er shall pay ail go~~ernmental or municipal ~f~arges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to ~ ~he entity~ ~~hich is oH~ed the pa}~ment. If faiiure to pay would adversely affect Lender's interest in the Propert~~, upon Lender's ~ r~yuest Borro~~er shall promptly furnish to Lender receipts evidencing these pa~~ments. If Borro~~er fails to make these pa~~ments or the pa}~ments required b}~ Paragraph 2, or fails to perform an~~ other co~enants and agreements contained in this Security (nstrument, or there is a legal proceeding that ma}~ significantly affect Lender's rights the Propert~~ (such as a proceeding in bankruptc~~, for condemnation or to enforce la~~~s or regulations), then Lender ma~ :ie~ and pa}~ ~~nate~er is necessar~• to protect the ~~alue of the Property and Lender's rights in the Pro~ert}~, includine pa}ment ~ taxes, hazard insurance and other items mentioned in Paraerarh 2. ~ ~ An~~ amounts disbursed b>~ Lende~ under this Paragraph shall become an additionai debt of Borro~~er and be secured a this Serurit~~ Instrument. These amounts shall bear interest from the date of disbur~ement, at the Note rate, and at the i~~. ~ ~~Ption of Lencier, shall be immediatel}~ due and pa~~able. ~ ~ 7. Condemnation. The proceec;s of an}~ a~~~ard or rlaim for damages, dire~t or conseyuential, in connection ~~~ith an}~ ~ :c+ndemnation or other taking of an~~ part of the Propert}~, or for comeyance i~~ place of condemnation, are hereb~~ assigned ~ and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and thi~ ` ~e~urit~ Instrument. Lender shall apply~ such proceeds to the reduction of the indebtedness under the Note and this Securit~ I nstrument, first to an~~ delinquent amounts applied in the order pro~~ided in Paragraph 3, and then to prcpayment of principal. f. /'uee : „f 4 P~ ~ # - - _ _ _ r,....~ ~ ~ ` - 1 _ . ~ > t