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Home My WebLink About0605 f~a~h nwnthl~ installment fur itemti (a), ~b), and (r),hall equal one-t~~eltth ot the annual amounts, as reasonably estimated h~ Lrn~icr, ~lu, a?; ~mount suffirient to maintain an additional balan~c of not more than c~ne-,i~th of the estimated amounts. I he 1'ull annual amoiint t~or ea~h item ~hall be arcumulated by Lender ~rithin a period ending one month before an item «ould h~cume ~ielinyuent. Lende: shall hold the amounts collected in trust to pa~~ items (a), (b), and (c) before they become delinquent. II at an~ timr the total of the pa~~ments held by !_ender for items (a), (b), and (c1, together ~~~ith the fuwre monthl~~ payments ~.~r ,uch itcros pa~able to Lender prior to the due dates of such itcm,, e~reeds bp more than one-sixth the estimated amount ~~t ~,a~m~nt~ reyuired to pa~~ such items ~~hen due, and if payments on the Note are current, then Lender sha~l either ret~und i hr ex~e~, o~ er one-sixth of the es~irrated payments or credit the excess o~~er one-sixth of the estimated pa>•ments to subsequent ~~.i~m~nts by E3orro~~er, at the op~ion of Borro~?er. If the total of the pa>~ments made by Borro~~~er for item (a), (b), or (c) i~ in~ut~firient to pay the item ~vhen due, then Borrower shall pay to Lender any amount neressary to make up the deficienc>~ ~~n or before the date the item becomes due. :~s used in this Security Instrument, "Secretar~~" means the Serretary of Housing and Urban De~•elopment or his or her ~te,ignee. ~tost Seruritp 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 ~~•hich did not require aci~anre payment of the entire mortgage insurance przmium, then each monthl}• payment shall also include either. (i) an installment ut 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 Security Instrument is held by the Secretary. Each monthly installment af the mortgage insurance ~rerniu?n shall be in an amount sufficient to accumulate the Pull annual martgage insurance premium with Lender one month E,rior to the date the full annual mortgage insurance premium is due to the Secretary, or if this Security Instrument is held b~~ the Secretary, each monthly charge shall be in an amount equal to one-t~~•elfth of one-half percent of the outstanding principal halance ~iue on the Note. If Borro~~~er tenders to Lender the full payment of all sums s~cured by this Sezurity Instrument, Borrower's account shall he rredited ~~~ith the balance remaining for all installments for items (a), (b), and (c) and any mortgage insurance premium installment that Lender has not become obligated to pay to the Secretacy, and Lender shall promptly refund any excess funds tu BorroH•er. Immediately prior to a foreclosure sale of the Property or its acquisition b}• Lender, Borro~~er's account shall he credited with any balance remaining for all installments for items (a), (b), and (c). 3_ Annlication nf Pavmpntc All navmPnrc ~~n.IP~ .,~~~~.~..1,~ t.,.,.~ ~~ti..n .,....e:..a c..~~_--.-- . . - - - r-~...~..... +,.....a.w~,u,r a ~aaau a. o.aua~ v~ uN~u~.~a v) t_.t~~ul.l aJ Iv11V~rJ. First, to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by ihe Secretary i~zstead of the monthly mortgage insurance premium, unless Borrow~er paid the entire mortgage insurance premium ti~hen this Security Instrument was signed; Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, flood and other hazard insurance nremiums, 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, Fiood and Other Hazard Insurance. Borrow~er shall insure all improvements on the Property, w~hether no~~~ in ~~istence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender reyuires insuranre. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also insure all improvements on the Property, whether now in existence or subsequently erected, against loss by floods to the extent required by the Secretary. All incurance shall be carried H~ith companies approved by Lender. The insurance policies and an~~ rene~~~3ls ~hall be held by Lender and shatl include loss payable clauses in favor of, and in a form acceptable to, Lender. ' [n the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made ~romptly by Borrower. Each insurance company concerned is hereby authorized and directed to make payment for such loss I; clirectl~~ to Lender, instead of to Borrower and to Lender ~ointl . All or an art 1 y y p of the insurance proceeds may be appl~ed i h` Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security Instrument, first to : arz~~ delinquent amounts applied in the order in Paragraph 3, and then to prepayment of principal, or (b) to the restoration _ ~~r repair of the darnaged property. Any application of the proceeds to the principal shall not extend or postpone the due date ~ of the monthly payments ~~~hich are referred to in Paragraph 2, or change the amount of such payments. Any excess insurance ' ~roceeds over an amount required to pay a(1 outstanding indebtedness under the Note and this Security Instrument 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 ~ indebtedness, all right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser. k 5. Preservation and Maintenance of the Propert~~, Leaseholds. Borrow~er shall not commit waste or destroy, damage or ~ .ubstantially change the Property or allow the Propert~~ ro deteriorate, rQasonable 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 ~ and preserve such vacant or abandoned property. If this Security [nstrument is on a leasehold, Borrower shall comply with ehe provisions of the lease. If Borrower acquires fee titte to the Property, the leasehold and fee title shall not be merged unless ~ L~nder agrees to the merger in writing. e ~ 6. Charges to Borrower and Pro/ection of Lender's Righls in the Property~. Borrower shall pa~~ all governmental or municipal ~ ~harges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to ~ th, er~tity ~~~hich is ow•ed the payment. !f failure to pay would adversely affect Lender's interest in the Propert~~, upon Lender's ~ rrquest Borrouer shall promptly furnish to Lender receipts evidencing these payments. !f Borrower fails to make these payments or the payments required by Paragraph 2, or fails to perform any other co~•enants ;tnd agreements contained in this Security Instrumem, or there is a legal proceeding that ma}- significantiy affect C.ender's rights in thr Property (such as a proceeding in bankruptcy, for condemnation or to enforce laws or regulations), then Lender ma~• ~lo and pa}~ w~hate~~er is necessary to protect the ~alue of the Property and Lender's rights in the Property, including payment «f taxes, hazard insurance and other items mentioned in ParagraPh 2. ~ An~~ amounts disbursed b~~ Lender under this Paragraph shall become an additionai debt of Borrower and be secured ~ i~y ~his Securit}~ Instrument. These amounts sha!1 bcar interest from the date of disbursement, at the Note rate, and at the ' ~~~~tion of Lender, shall be immediately due and pa~~able. t ~ ~ 7. Condemnation. Th: proceeds of any a~ti~ard or claim for damages, direct or consequential, in connection with any- ~ ~:~~ndemnation or other taking of an}~ part of the Property, ar for rom~eyance in place of condemnation, are hereby assigned ~ .ii~d shail be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this ~~curit~~ Instrument. Lender shall applp such procee~s to the reduction of the indebtedness under the Note and this Security f r~strument, first to an~~ delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment of principal. ~ ~'j PaYe _ nf 4 B~.ri~ PAuE VO~ _ . . _ . c~,..~' ~"'-.~.c~ ~ ^~'a."~.;~ - ::?~tr ~ „m~ 'q,.'t~x"`'~~' - ,~:~c-",--.v