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Home My WebLink About1516 V t a:h numthl~ in~tallment I~or ite~n, (a), ih?, and i~) shall eyual une-t~~elfth ot the annu:~! am~~unt~, as reasunabl~• estimated h~ L~n~ler, {~lu~ ai~ amuunt sufficient to maintain an additional batanre ot~ not more than c~i~c-~isth oti the estimated amount~. I hr tull annuai amuunt tor each itcro shall be acci?mulateel hy~ Lender ~~ittiin a period en~iing one month hetiorr :~n item ~~ould hr~ume ~ieliryuent. Lender ,hall hold the amounts collerted in trust to pa>~ items (a1, (b), and (c) before they become detinyuent. li at an~ time the total of the pa~ments held by~ Lender for items (a), (b), and (cl, together ~~ith the future monthl~~ pa~~ments tur ,u~h items ~a>able to Lcnder prior to the due dates of such items, erceeds b>• more than one-sixth the estimated amount ut ~~a>m~nts rryuired to pa~~ such items ~~hen due, and if pa~ments on the Note are current, then Lender shall either refund ~h< <xce,s o~er one-sixth ot' the .stimated pa>•n~ents or credit the excess over one-sixth ot' the estimated payments to subsequent ~,a~sinnt~ by Sorro~~er, at the uption of Borrower. If the total of thc pa>~men[s made by~ F3orro~+~er for item (a), (b), or (c) i, in~ulCirient to pa~• the item ~chen due, then IIorrow~er shatl pa~• to Lender any amount neces~ary to make up the det'ieiency un or brfore the date the item becomes due. :~s tuec! in this Securit~~ Instrument, "Secretary" means the Secretary of Housing and Urban Dc~~etopment or his or her ~ie~iknee. ~tost Serurit~• In,truments insured by the Secretar~~ are insured under prograsns ~~~hich require ad~~ance payment of ~he entire mortgage insurance premium. !f this Security Instrument is or ~~~as insured under a program which did not require acl~anre pay~ment ~f the entire mortgage insurance premium, then each monthly payment shall a(so include either: (i) an installment uf 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~• Instrument is held by the Secretar~~. Each monthly~ installment of the mortgage insurance ~remium shall be in an amount sufficient to accumulate the full annual mortgage insuranre premium with Lender one month ~rior to the date the full annual mortgage insurance premium is due to the Secretar~~, or if this Securit~• Instrument is held h~~ the Secretary, each monthly charge shall be in an amount equal to one-tw~elfth of one-half percent of the outstanding principal balanre due on the tiote. If Borro~~~er tenders to Lender the full payment of all sums secured by this Security Instrument, Borrow~er's account shall be credited ~~ith the balance remaining for all installments for items (a), (b), and (c) and any mortgage insurance premium i~istallment that Lender has not become obligated to pay to the Seeretary, and Lender shall promptly refund any excess funds to Borrower. tmmediately prior to a foreclosuce sale of the Property or its acquisition by Lender, Borrow•er's account shall be credited with an}~ balance remaining for all installments for items (a), (b), and (c). 3. AppOication of PaS~ments. All payments under paragraphs 1 and 2 shall be applied by Lender as follo~vs: First, to the mortgage insurance premium to be paid b}• Lender to the Secretary or to the monihly charge by the Secretary instead of the ~nonthly mortgage insurance premium, unless BorroH~er paid the entire mortgage insurance premium when this Security lnstrument was signed; Second, to any taxes, special assessments, leasehold payments or ground rents, and fire, fload and other hazard insurance ~~remiums, as required; Third, to interest due under the Note; Fousth, 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 all improvements on the Property, w~hether now in cxistence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires ir~surance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shal! also insure all iinprovements on the Property, w•hether noa~ in existence or subsequently erected, against loss b~• iloods to tfie extent reyuired by the Secretary. All insurance shall be carried H~ith companies approved by Lender. The insurance policies and any renew~als shall be held by Lender and shall include lo~s payable clauses in favor of, and in a form acceptable to, Lender. ~ In the event of loss, Borrow~er shall give Lender immediate notice by maiL Lender may make proof of loss ~f not made promptly by Borrower. F.ach insurance company concerned is hereby authorized and directed to make payment for such loss i directly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may be applied ~ by~ Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security Instrument, first to ~ any delinquent amounts apptied in the order in Paragrapl~ 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 ~ of the monthly payments which are referred to in Paragraph 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 entitp legally entitled thereto. i ; In the event of foreclosure of this Security- Instrument or other transfer of title to the Property that extinguishes the ? indebtedness, ap right, title and interest of Borrower in and to insurance policies in force shall pass to the purchaser. i ~ 5 5. Preservation and Maintenance of the Propert~. Leaseholds. Borrower shall not commit waste or destroy, damage or { 5ubstantiall?~ change the Property or allow the Property to deteriorate, reasonable w~ear and tear excepted. Lender may inspect ~ che pr~perty if the property is vacant or abandoned or the loa? is in default. Lender may take reasonable ac~ion to protect z and presen~e such ~~acant or abandoned property. [f this Security Instrument is on a leasehold, Borrower sfia(I comply with ~ ~he pro~~isions of the lease. If Borrow~er acquires fee title ro the Property, the leasehold and fee title shall not be merged unless ~ Lendcr agrees to ti~e merger in writing. ~ 6. Charges to Borrower and Protection of Lender's Rights in the Propeny. Borrower shall pay all governmental or municipai ~ rharges, fines arid impositions that are not included in Paragraph 2. Borrower shall pay these obligations on time directly to ~ the e~tit~~ which is owed the payment. If failure to pa}~ would adversely affect Lender's interest in ihe Pro~erty, upon Lender's m reyuest Borrower shalf promptly furnish to Lencier receipts evidencing these payments. lf Borro~ver 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 proceeding that ma}~ significantly affect Lender's rights in the Property~ (such as a proceeding in bankruptcy, for condemnation or to enforce faws or regulations), then Lender may do and pa}~ ~i~hatever is necessary to protect the ~~atue of the Property and Lender's rights in the Property, including payment : c~f taxes, hazard insurance and other items mentioned in Paragraph 2. Am~ amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrow~er and be secured b~ this S~ecuritv lnstrument. These ar~ounts shall bear interest from the date of disbursement, at the Note rate, and at the ~ uption of Lender, shall be immediately due and pay~able. ~ x 7. Condemnation. The proceeds of an~~ award or claim for damages, dire~t or consequential, in connection ~~~ith any ~ ~ondemnation 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 che fult amount of the indebtedness that remains unpaid under the Note and this Securit} Instrument. Lender shall apply such proceeds to the reduction of the indebtedness under the Note and this Sec~rity tnstrument, first to an~~ definquen[ amounts applied in the order provided in Paragraph 3, and then to prepayment of principal. . P~.zP z of a 6~RX 6~~ PACf 15~~ E F ~ ~ ~ ~as~~