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<br /> The Funds shall be held in an institution whose deposits are insured by a federal a�ncy, instrumentality, or en�ity
<br /> (including Lender, if Lender is such an institution)or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the
<br /> Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or
<br /> verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such
<br /> a charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate tax reporting service
<br /> used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or
<br /> applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. :
<br /> Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower,
<br /> without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each :
<br /> debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument.
<br /> If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender'shall account to Borrower
<br /> for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any :
<br /> time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower
<br /> shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than �
<br /> twelve monthly payments, at Lender's sole discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any
<br /> Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale :
<br /> of the Property, sha}I apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by
<br /> this Security Instrument.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs � :
<br /> 1 and 2 shall be applied: first, to any prepayment charges due� under the Note; second, to amounts payable under paragraph 2;
<br /> third, to interest due; fourth, to principal due; and last, to any late charges due under the Note.
<br /> 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions atCributable to the Property :
<br /> which may attain priority over this Security Instrument, and leasehold payments or bround rents, if any. Borrower shall pay :
<br /> these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly :
<br /> to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. :
<br /> If Borrower makes these payments direcdy, Borrower shall promptly furnish to Lender receipts evidencing the payments.
<br /> Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in :
<br /> writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien :
<br /> by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the
<br /> enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to :
<br /> this Security InstrumenL If Lender determines that any part of the Property is subject to a lien which may attain priority over
<br /> this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or
<br /> more of the actions set forth above within ]0 days of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including :
<br /> floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods
<br /> that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval :
<br /> which shall not be unreasonably withheld. If Borrower fails to maintain coverage describeci above, Lender may, at Lender's :
<br /> option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7. :
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender :
<br /> shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of
<br /> paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender.
<br /> Lender may make proof of loss if not made promptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the
<br /> Prapert}'damaged, it:xhe-restwr�iAn o�repairi�economirall�_feasihle-aad Lender'� securii3�.is uat lessened. If thc restoratier.or
<br /> repair is not economically feasible ar Lender's security would be lessened, the insurance proceeds shall be applied to the sums
<br /> secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the
<br /> Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a daim, then
<br /> Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums
<br /> secured by this Security Instrument, whether or not the�n due. The 30-day period will begin when the notice is given.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or :
<br /> postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br /> under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from :
<br /> damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument
<br /> immediaCely prior to the acquisition. :
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds.
<br /> Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of :
<br /> this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year af'ter :
<br /> the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless
<br /> extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or impait• the :
<br /> Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any fiorfeiture
<br /> action or proceeding, whether civil or crimi�nal, is begun that in Lender's good faith judgment could result in forfeiture of the
<br /> Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may :
<br /> cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling :
<br /> that, in Lender's good fiaith determination, precludes forfeiture of the Borrower's interest in the Property or other material
<br /> impairment ofi the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if
<br />� Borrower, during the loan application process, gave materially false or inaecurate information or statements to Lender(or faileci
<br /> to provide Lender with any material information) in connection with the loan evidenced�by the NoCe, including, but not limited :
<br /> to, represen�ations concermng Borrower's occupancy of the Property as a principal residence. If this Security instrument is on a
<br /> leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the :
<br /> leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. :
<br /> 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in
<br /> this Security Instrument, or there is a legal pr•oceeding that may significantly affect Lender's rights in the Properry (such as a :
<br /> proceeding in bankruptcy, probate, for condemnation or forf'eiture or to enfiorce laws or regulations), then Lender may do and
<br /> pay for whatever is necessary to protect the value of the Proper�y and Lender's rights in the Property. Lender's�actions may :
<br /> include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying
<br />�� reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph :
<br /> 7, Lender does not have to do so.
<br /> Any amount's disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br /> Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the
<br /> date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requestii�g :
<br /> payment.
<br /> 8. Mortgage Insuranee. If Lender required mortgage insurance as a condition of making the loan secured by this Security :
<br /> Instrument, Borrower shall pay the premiums required to maintain the mortgage. insurance in efifect. If, for any reason, the
<br /> mortgage insurance covera�e required by Lender ]apses or ceases to be in effect, Borrower shall pay the premiums required to :
<br /> obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the
<br /> eost �o Borrower of the mortgage insurance previously in effect, �from an alternate mortgage insurer approved by Lender. If
<br /> - Page 2 of 4 Form 3028 9/90
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