The URL can be used to link to this page

Home My WebLink About2276 1 ~ t,i~h munthly in.ta!lm~nt f~~r itemti ~ct). Ihl, an~ ~hall eyual c~nr-t~~~itth ut the annua! am.~unt~, a~ r~a~unahl~ e~tim.urcl h~ Lrn~icr. E~lu, a~~ amount ~ufti~ienl to maint.?in an ad~litional b~ilan~e ui~ nut more than ~~ne-,i~th oi thr ~~timatr~! amount.. I hr tull annu.il amuunt fur earh item ~hall be a~cumulat~d by Lender ~~ithin a{~eriud rnding une month belurr an item ~~oulcl hr~e~nir delinyurnt. Lender shall huld th~ amounts colleciea in trust to pa~~ items (a1. Ib), and (c) bcfore the~ brcome ~lrlinyuent. If at an~ time th~ tutal c~f the paymcnt~ held b~~ Len~er for items (a), (b). ~?nd lc). togethrr ~~ith the future m~~nthl~ pa~ments t.,r .uch iten~s ~a~~able to L~nder prior to the due dates of su~h items, exreeds by mare than one-tii~th the estin~~ted amuunt ' ~~ayments reyuired to pa> such items ~~hen due, and if paymen~s c~n the Nate arr current, then Lender shall either rrfuncf i ih~ exc~ss o~rr one-sixth of the estimated pa~ments or rrec3it the exccss o~er e~nr-sixth ot~ the estimated pa}~mentti to subseyuent ~~.i~m~ntti h~~ l3orro~~er, at thc option ot Borro~~~er. If the total of the pa~ments made by E3orro«er ior item (a?, (b), or in~ut~l~i~ient to pa~• the item ~vhen due, then Borro~~er shall pay to Lender an~~ amount neces~ary to make up the defici~nry ~~n ur befc~re the date the item becomes due. As used in this Security Instrument, "Secre~ary" means the Secretary of Housing and Urban De~elopment or his or her ~ir,ignee. 11ost Security Instruments insured by the Secretary are insured under programs «~hich require ad~•ance payment oi ~he entire mortgage insuranre premium. If this Security Instrument is or «as insured under a program which did not require .tct~ as~ce pa~~ment of the entire mortgage insurance premium, then each monthl}• pa~•ment 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 mortt~aRe insurance premium if' this Security Instrument is held by the Secretary~. Each monthly installment of the mortgage insurance G~remium shall be in an amount s?iffirient to accumulate the i~ull annual mortgage insurance premium H~ith Lender one month ~riar t~ the date the full annual mortgage insuranre premium is due to the Secretary, or if this Securit~~ Instrument is held h~• the Secretary, each monthly charge shali be in an amount equal to one-h~~elfth of one-half percent of the outstanding principal halance duc on the Note. If Borro~~er tenders to Lender the full payment of all sums secured by this Security Instrument, Borrower's account shall be credited ~~~ith the balancc remaining for all installments for items (a), (b), and (c) and any mortgage insuranre premium :nstallment that Lender has not become obligated to pay~ to the Secretary, and Lender sha11 promptly refund any excess funds ~o Barro~~•er. lmmediatel}~ prior to a foreclosure sale of the Property or its acquisition by Lender, Borrower's account shall he ~redited ~~~ith any balance remaining for all installments for items (a), (b), and (c). 3. Application of Pa~~ments. All payments under paragraphs I and 2 shall be applied by Lender as follows: First. to the mortgage insurance premium to be paid by Lender to the Secretary or to the monthly charge by the S~cretary instead of the monthly mortgage insurance premium, unless Borrower paid the entire mortgage insurance premium H~hen this Security Instrument w~as signed; Second, to any taxes, special assessments, leas~ho~d 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 all improvements on the Property, ti~hethcr now in ~xistence or subsequently erected, againse any hazards, casualties, and contingencies, inciuding fire, for ~~hic~ Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also insure ail improvements on the Property, whether now in existence or st;bsequently erected, against loss by floods to the extent reyuired by the Secretary. All insurance shall be carried with companies approved by Lender. The snsurance policies and any renewals shall be held by Lender and shall include loss payab[e clauses in favor of, and in a form acceptable to, Lender. ' In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made ; promptly by Borrow~er. Each insurance company concerned is hereby authorized and directed to make payment for such loss ; clirectly to Lender, instead of to Borrower and to Lender jointly. All or any part of the insurance proceeds may be applied i b~~ Lender, at its option, either (a) to the reduction of the indebtedness under the Note and this Security Instrument, first to ; any delinquent amounts applied in the 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 ~f the monthly payments which are referred to in Paragraph 2, or change the amount of such payments. Any excess insurance ~roceeds o~~er an amount required to pay all outstanding indebtedness under the Note and this Security Instrument shall be t ~aid to the entity legally entitted thereto. ~ In the event of foreclosure of this Security Instrumeni 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. ~ F ~ 5. Preservatio~s and Maintenance of the Property, Leaseholds. Borrower shall not commit w~aste or destro}~, damage or .ubstantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect ~ ctje property if the property is vacant or abancloned or the loan is in default. Lender may take reasonable action to protect ~ and preserve such vacant or abandoned property. If this Security lnstrument is on a leasehold, Borrower shall comply with ` ~he provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and fee title shall not be merged unless ~ Lender agrees to the merger in writing. F 6. Charges to Borrow~er and Protection of Lender's Rights in the Property. Borrow~er shall pay all governmenta) or municipal ~ ~harges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obliga:ions on time directly to the entity which is owed the payment. [f failure to pay would adversely affect Lender's interest in the Property, upon Lender's request Borro~.•er shall promptly furnish to Lender receipts evidencing these payments. If Borrow•er fails to make these payments or the payments required by Paragraph 2, or fails to perform any other co~•enants ~~nd agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, for condemnation or to enforce law~ or regulations), then Lender may do and pay whate~~er 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 disburse~ by Lender under this Paragraph shall become an additional debt of Borrow~er and be sec~red ; h~ this Security Instrument. These amounts shali bear interest from the date of disbursemcnt, at the Note rate, and at the ~ option of I.ender, shalf be immediately due and payable. r ~ 7. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection w~ith an}~ ~ c~~ndemnation or other taking of any nart of the Property, or for conveyance in place of condemnation, are hereby assi~ned and shall be paid to Lender to the extent of the full amount of the indebtedness that remains unpaid under the Note and this , Security Instrument. Lender shall apply such proceeds to th.° reduction of the indebtedness under the Nate and this Security Instrument, first t~ any delinquent amounts applied in the order provided in Paragraph 3, and then to prepayment of principal. Pa,ze 7 oj 4 B~RX 1~~~ PA~~227fi . - - ~ - - - - - ~..~`°§-•.,'~~a~,~~ ' ~ ='~r^ , f. _ -~~~~rs~~;;- ~ `