Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, t2 U.S,C�
<br /> 2601 et seq. ("RESPA"), uniess another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and
<br /> hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of funds due on the basis of curcent data�
<br /> and reasonable estimates of expendkures of future Escrow Items or otherwise in accordance with applicable law.
<br /> The Funds shall be held in an institution whose deposks are insured by a federal agency, instrumentality, or entity (including. �
<br /> Lender, 'rf Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items�
<br /> Lender may not charge Borrower for holding and applying the Funds, annually anayzing the escrow account, or verifying the Escrow ,�,r"'`,,
<br /> Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. However, Lender �'i
<br /> may requue Borrower to pay a on�time charge for an independent real estate tax reporting service used by Lender in connection wfth C�
<br /> this loan, unless applicable Iaw provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender �
<br /> shall not be required to pay Borrower any interest or eamings on the Funds. Bonower and Lender may agree in writing, however, that �",
<br /> interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing
<br /> credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional
<br /> security for all sums secured by this Secu�ity Instnament.
<br /> If the Funds held by Lender exceed the amounts pertnitted to be heid by applicabie law, Lender shall account to Borrower for the
<br /> excess Funds in accordance wfth the requirements of appiicable law. If the amount of the Funds heid by Lender at any tkne is not
<br /> sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case BoROwer shali pay to Lender
<br /> the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve monthy payments, at
<br /> Lenders soie discretion.
<br /> Upon payment � full of all sums secured by this Securky Instrument, Lender shall promptly refund to BoROwer any Funds held by
<br /> Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall
<br /> appy any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument.
<br /> 3. Application of Payments. Unless applicable Iflw provides otherwise, ail payments received by Lender under paragraphs
<br /> 1 and 2 shall be appiied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; thkd
<br /> to interest due; fourth, to principal due; and last, to any lete charges due under the Note.
<br /> 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and imposkions attr�utable to the Property
<br /> which may attain prioriry over this Security Instrument, and leasehold payments or ground rents, if any. Bonower shall pay these
<br /> obligations in the menner provided rc� paragraph 2, or 'rf not paid in that manner, Borcower shall pay them on time directly to the person
<br /> owed payment. Borrower shall promptly fumish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes
<br /> these payments directly, Borrower shall promptly fumish to Lender receipts evidencing the payments.
<br /> Borrower shall prompty discharge any lien which has prioriry over this Security Instrument unless Borcower: (a) agrees �► writing to
<br /> the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good fakh the lien by, or defends
<br /> against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c)
<br /> secures irom the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender
<br /> determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give
<br /> BoROwer a notice identi(ying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br /> of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now �cisting or hereafter e�ected on the
<br /> Property insured against loss by fire, hazards hcluded wkhin the term "extended coverege" and any other hazerds, including floods or
<br /> flooding, for which Lender requires insurance. This insurance shall be ma�ta�ed in the amounts and for the periods that Lender
<br /> requ�es. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br /> unreasonabty withheld. If Borrower fails to mahtain coverage described above, Lender may, at Lenders option, obtain coverage to
<br /> protect Lenders rights in the Property n accordance with paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall �clude a standard mortgage clause. Lender shaA have
<br /> the right to hold the policies and renewals. If Lender requires, Borrower shali prompty give to Lender all receipts of pald premiums
<br /> and renewal notices. In the event of bss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make
<br /> proof of loss 'rf not made prompty by Bonower.
<br /> Uniess Lender and Borcower otherwise agree in wrking, insurance proceeds shall be applied to restoration or repair of the Property
<br /> damaged, ff the restoration or repaK is economicaly feas�ble and lender's security is not lessened. If the restoration or repair is not
<br /> economicaly feas�ble or Lender's security would be lessened, the insurance proceeds shail be applied to the sums secured by this
<br /> Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not
<br /> answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the
<br /> insurance proceeds. Lender may use the proceeds to repa� or restore the Property or to pay sums secured by this Security
<br /> Instrument, whether or not then due. The 30-day period will begin when the notice is given.
<br /> Unless Lender and Borrower otherwise agree in wrking, any application of proceeds to principal shall not extend or postpone the
<br /> due date of the monthly payments refeRed to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21
<br /> the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting (rom damage to the Property prior
<br /> to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument knmedlately prior to the
<br /> acquiskion.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br /> Application; Leaseholds. Borrower shaN xcupy, establish, and use the Property as Borrowers principal residence wkhin sbcty
<br /> days after the executbn of this Securky Instrument and shall continue to xcupy the Property as Borrower's principal residence for at
<br /> least one year after the date of occupancy, unless Lender otherwise agrees in wrRhg, which cons�t shall not be unreasonaby
<br /> withheld, or unless extenuating circumstances exst which are beyond Borrower's control. BoROwer shall not destroy, damage or impair
<br /> the Property, sAow the Property to deteriorate, or commit waste on the Property. Borrower shall be in defauk 'rf any forfeiture action or
<br /> proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could resuk in forfeiture of the Property or othervvise
<br /> materially impair the lien created by this Securky Instrument or Lender's securiry interest. Borrower may cure such a defauk and
<br /> reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a n�ling that, a� Lenders good faith
<br /> determination, precludes forfeiture of the Bonowe�'s interest in the Property or other materiel impakmer►t of the lien created by this
<br /> Securky Instrument or Lenders security interest. Borcower shall also be in defauk ff Borrower, during the loan appiication process,
<br /> gave materially false or inaccurate infom�ation or statements to Lend� (or failed to provide Lender with any material infoRnation) in
<br /> connection with the ban evidenced by the Note, including, but not limited to, representations conceming Borrower's occupancy of the
<br /> Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall compy wfth all the provisions of the
<br /> lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless the Lender agrees to the
<br /> merger � wrking.
<br /> Form 3028 B/90
<br /> F1029.LMa(10/97) Page 2 of 5
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