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Home My WebLink About2905 Each monthiy in~tallment for items (a), (b), and (c) shall equal one-twelfth o( the annual amounts, as reaconably estimated b~ l.ender, plus ar amount sufficient to rnaintain an additionai balance of not more than c~ne-sixth of the estimated amounts. 1 h~ t~ull annual amiiiint fnr Parh if~+m chall h~+ arrumnl~ts+il I.v 1 A.,.~a~ ..,:rl.:., ~.....c...~ a.,.1:.,.. ..~1, . e. ~....vw .,.......b v:i~ ~iivuu. v~•v.~ uii :vuau hecume delinquent. Lender shall hold the amounts collected in trust to pay items (a), (b), and (c) before they become delinquent. If at any time the total of the pa~~ments held by Lender for items (a), (b1, and (cl, together H~ith the future monthly payments !or such items payable to Lender prior to the due dates of such items, exceeds by more than one-sixth the e~timated amount uf payments reyuired to pay surh items when due, and if payments on the Note are current, shen Lender shall either refund ~he excess over one-sixth of the estimated payments or credit the excess over one-sixth of the estimated payments to subsequen~ ~ayments by Borrower, at the option of Borrower. If the totai of the payments made by Borrower for item (a), (b), or (c) it insufficient to pay the item when due, then Borrower shall pay to Lender any amount necessary to make up the deficiency on or before the date thc item becomes due. As used ir~ this Securit~~ lnstrument, "Secretary" means the Secretary of Housing and Urban Development or his or her designee. Most Security Instruments insured by the Secretary are insured under programs which require advance payment of the entire mortgage insurance premium. lf this Security Instrument is or was insured under a program which did not require ad~~ance payment of the entire mortgage insurance premium, then each monthly payment shall also include either: (i) an installment of' the annual mortgage insurance premium to be paid by Lender to the Secretary, or (ii) a monthly eharge instead of a mortgage insurance premium if this Security lnstrument is held by the Secretary. Each monthly installment of the mortgage insurance ~remium shall be in an amount sufficient to accumulate the ful! annual mortgage insurance premium with Lender one month prior to the date the full annual mortgage insurance premium is due to the Secretary, or if this Security Instrument is held by the Secretary, each monthly charge shall be in an amount equal to one-twelfth of one-half percent of the outstanding principal balance due on the Note. If Borrower tenders to Lender the fult payment of all sums secured by this Security Instrument, Borrow~er's account shall be credited with the balance remaining for alt installments for items (a), (b), and (c) and any mortgage insurance premium instaliment that Lender has not become obligated to pay to the Secretary, and Lender shall promptiy refund any excess funds ~o BorroK~er. Immediately prior to a foreclosure sale of the Property or its a:.quisition by Lender, Borrower's account shall t~e credited with any balance remaining for all installments for items (a), (b), and (c). 3. Application of Ps~yments. All payments under paragraphs 1 and 2 shall be applied ~+y Lender as follows: ~ 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 Borrower paid the entire mortgage ins~rance premium when this Security Instrument was signed; ~ Second, to any taaces, special assessments, teasehold payments or ground rents, and fire, flood and other hazard insurance premiums, as required; Third, to interest due under the Note; Fourth, to amoriization of the principal of the No[e; ~ ' Fifth, to late charges due under the Note. i 4. Fire, Flood and ~ther HazArd Insurance. Borrower shall insure all improvements on the Property, whether now in e~istence or subsequently erected, against any hazards, casualties, and contingencies, including fire, for which Lender requires ~ insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. Borrower shall also i insure a!1 improvements on the Property, whether now in existence or subsequently erected, against loss by floods to the extent ' required by the Secretary. All insurance shall be carried with companies approved by Lender. The insurance policies and any i renewals shall be held by Lender and shall include loss payable clauses in favor of, and in a form acceptable to, Lender. I ~ In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of loss if not made promptly by Borrower. F.ach insurance company concerned is hereby authorized and directed to make payment for such loss , directly to Lender, instead of to Borrower and io 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 Instrumeni, first to ~ any delinquent amounts applied in the order in Paragraph 3, and then to prepaymerit 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 i 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 entity legally entitled thereto. ' In the event of foreclosure of this Security Instrument or other transfer of title to the Property that extinguishes the ~ ~ndebtedness, 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 Property, Leaseholds. Borrower shall not commit waste or destroy, damage o~ ~ substantially change the Property or allow the Property to deteriorate, reasonable wear and tear excepted. Lender may inspect E ?{.n rr ..N. ..L.,~.J~ _J .L_ 1_ .l_r_. s Y•~Y"'J " Y'v}•..~aj i~ ~a~ai~i v7 avauuvuc.u uT tuc IVCt11 IJ 111 U~l"dUll. LClIl1C1 ttlity liIICC ICiIJUII"AUIC dl'UU? LU PIUICC[ ar~d preserve such vacant or abandoned property. If this Security Instrument is on a leasehold, Borrower shall comply with ' the 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: ~ ~ 6. Charges to Borrower and Protection of Lender's Rig6ts in the Pcoperty. Borrower shall pay alf gov~rnmental or municipal ~ charges, fines and impositions that are not included in Paragraph 2. Borrower shall pay these obtigations on time directly to ~ tfne entity which is ow~ed the payment. If failure to pay would adversely affect Lender's interest in the Property, upon Lender's ' request Borrower 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 oth~r covenants and 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 laws or regulations), then Lender may do and pay whatever is necessary to protect the value of the Property and Lender's rights in the Property, inctuding paysnent of talces, hazard insurance and other items mentioned in Paragraph 2. Any amounts disbursed by Lender under this Paragraph shall become an additional debt of Borrower and be secured hv ihiC SP['~~ritv InSt~i~mPnt ThPCr amn~~ntc chall h~ar jn~~~~~~ (~nm ~1„ r1u„ ~ ~7oh~~.~o.,,~.,~ .•t,e I ,1 . ti,. - ~ • C .ov.,.o..u..ua. .1. u~~, i~Ot~ f3t~, i~fiv ai iut ; option of Lender, shall be immediately due and payable. ~ 7. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any ccndemnation or other taking of any part of the Property, or for conveyance in place of condemnation, are hereby assigned and shali 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 shalt apply such proceeds to the reduction of the indebtedness under the Note and this Security Instrument, iirst to any delinquent amoants applied in the order provided in Paragraph 3, and then to prepayment of principal. Page 2 oj 4 pQK 5 P~i~EZ~o~ ' _ : - _ _ _ _ _ . sv . ~ ~4~~~:?~~~~~`~~~a~~'`~~'~~`~