Borrowers escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C.
<br /> ' 2601 et seq. ("RESPA"), unless another Iaw that applies to the Funds sets a lesser amount. If so, Lender may, at any tkne, collect and
<br /> hold Funds in an amount not to excsed the lesser amount. Lender may estrnate the amount of funds due on the basis of current data �
<br /> and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable Iaw. �
<br /> The Funds shall be held in an institution whose deposits 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 appty the Funds to pay the Escrow Items: �
<br /> Lender may not charge Borrower tor holding and appying the Funds, annually analyzing the escrow account, or veri(ying the Escrow �
<br /> Items, unless Lender pays Borrower interest o� the Funds and applicable law permits Lender to make such a charge. Howeve�, Lender �
<br /> may require Borrower to pay a one-time charge tor an independent real estate tax reporting service used by Lender in connection with �
<br /> this loan, unless appl'�cable law provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender }ii
<br /> shall not be required to pay Borrower any interest or eamings on the Funds. Borrower and Lender may egree in writing, however, that �
<br /> interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annuai 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 additbnal
<br /> security for all sums secured by this Securky Instrument. :
<br /> If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shail account to Borrower for the
<br /> excess Funds in accordance wRh the requkements of applicable law. If the amount oi the Funds held by Lender at any tkne is not
<br /> sufficient to pay the Escrow Items when due, Lender may so notify Borrower in wrking, and, in such case Borrower shall pay to Lender
<br /> the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve monthiy payments, at
<br /> Lenders sole discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall prompty refund to Borrower any Funds held by
<br /> Lender. If, under paragraph 21, Lender shal� acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall
<br /> apply any Funds heid by Lender at the time of acquiskion or sale as a credit agahst the sums secured by this Security Instrument.
<br /> 3. Application of Payments. Unless appl'�cabie law provides otherwise, all payments received by Lender under paraeraphs
<br /> 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third
<br /> to interest due; fourth, to principal due; and last, to any late charges due under the Note.
<br /> 4. Charges; Liens. Bonower shall pay all taxes, assessments, charges, fines and enpositions attributable to the Property
<br /> which may attain prioriry over this Security Instrument, and leasehold payments or ground rents, ff any. Borrower shall pay these
<br /> obligations in the manner provided in 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 /> BoROwer shall promptly discharge any I"�en which has priority over this Security Instrument unless Borrower: (a) agrees in writing to
<br /> the payment of the obl'gation secured by the lien in a manner acceptable to Lender; (b) contests in good faith 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 from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Securiry Instrument. If Lender
<br /> determines that any part of the Property is subject to a lien which may attah priority over this Securdy Instrume�t, Lender may give
<br /> Borrower a notice identitying the lien. Borrower shall setisty 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 ksep the improvements now existing or hereafter erected on the
<br /> Property �sured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or
<br /> flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender
<br /> requires. The insurance caRier providing the msurance shall be chosen by Borrower subject to Lenders approval which shall not be
<br /> unreasonaby withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to
<br /> protect Lender's rights in the Property in accordance wRh paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall inck�de a standard moRgage clause. Lender shall heve
<br /> the right to hold the policies and renewals. If Lender requrces, BoROwer shall promptly give to Lender all receipts of paid 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 bss ff not made prompty by Borrower.
<br /> Unless Lender and Borrower otherwise egree h writing, insurance proceeds shall be applied to restoration or repair of the Property
<br /> damaged, 'rf the restoraCwn or repair is economically feas�le and Lender's security is not lessened. If the restoration or repair is not
<br /> economically feasible or Lender's security would be lessened, the insurance proceeds shall 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 writing, any application of proceeds to principal shall not extend or postpone the
<br /> due date of the monthy payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21
<br /> the Property is acquired by Lender, Borrowers right to any insurance policies and proceeds resuking from damape to the Property prior
<br /> to the acquisition shail pass to Lender to the extent of the sums secured by this Security Instrument knmediately prior to the
<br /> acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br /> Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within siocty
<br /> days aiter the execution of this Security Instrument and shaN continue to occupy the Property as Borrower's principal residence for at
<br /> least one year after the date of occupancy, unless Lend� otherwise agrees in wrking, which consent shali not be unreasonably
<br /> withheld, or unless extenuatng circumstances exist which are beyond Borrower's aontrol. Bonower shall not destroy, damage or impair
<br /> the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default 'rf any forfeiture action or
<br /> proceeding, whether civil or criminal, is begun that in Lender's good fakh judgment could result in forfeiture of the Property or otherwise
<br /> materially impair the lien crested by this Security Instrument or Lender's security interest. Borrower may cure such a defauR and
<br /> reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good fakh
<br /> determination, precludes forfeRure of the Borrower's interest in the Property or other material impairment of the lien created by this
<br /> Security Instrument or Lender's security interest. Bonower shall also be h defauk ff Borrower, durng the ban epplicatbn process,
<br /> gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in
<br /> connection wkh the loan evidenced by the Note, includ'ng, but not linited to, representatwns conceming Borrowers occupancy of the
<br /> Property as a principal residence. If this SecurRy Instrument is on a leasehold, Borrower shall comply with 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 in writing. Fo�m so2a e/eo
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