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98— �cj��s��u
<br /> The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
<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�harge. 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 carnings 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 ro the Funds was made. The Funds are pledged as additional security for all sums secured by [his 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 /> twe(ve 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 Borrc�wer any
<br /> Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior ro the acyuisition or sale
<br /> of the Property, shall 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 attributable to the Property
<br /> which may attain priority over this Security Instrument, and leasehold payments or ground 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 /> Borrowet 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) ccmtests 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 Instrument. 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 10 days of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or herexfter erected �n the
<br /> Property insured agains[ loss by fire, hazards included wi[hin the term "extended coverage" and any other harards, including
<br /> tloods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods
<br /> that Lender reyuires. The insurance carrier providing the insurance shall be chosen by Borrower tiubject to Lender's apprciva)
<br /> which shall not be unreasonably withheld. If Borrawer fails to maintain coverage described above, Lender may, at Lender'ti
<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 ro hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receints ol�
<br /> paid premiums and renewal notices. In the event of loss, Borrower shall give prornpt notice to the insurance carrier and Lender.
<br /> Lender may make proof of loss if not made prc�mptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied te� restciratiem c�r repuir ol�the
<br /> Prc�perty damaged, if the restoration or repair is economically feasible and Lender's security is not lessenecl. lf the restoratie�n ��r
<br /> repair is not economically feasible or 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 nat answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then
<br /> Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums
<br /> ti�cured by this Security 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 ,ipplication of proceeds t<� principal shall ncit extend or
<br /> po�tpone the due date of the monthly payments refen•ed to in paragraphs I and 2 ��r change the amount ol' the payments. If
<br /> under paragraph 21 the Property is acquired by Lender, Borrower's right to any insuranre policics and procceds 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 /> immediatel�- prior to the acquisition.
<br /> 6. nccupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Lcaseholds.
<br /> Borrower shall occupy, establish, and use the Property as Borrc�wer's principal resiclence within sixty clays at�ter the execution of
<br /> this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after
<br /> the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreascmably withheld, or unless
<br /> extenuating circumstanc�s exist which are beyond Borrower's controL Borrowcr shall not destroy, damage or impair the
<br /> Property, allow the Pr��perty ro deteriorate, or commit waste on the Property. Borrower shall he in det'ault if any forfeiture
<br /> action or proceeding, whether civil or criminal, is begun that in Lender's goc�d faith ,judgment cc�ulcl result in forl'citure c�f the
<br /> Property or otherwise materially impair the lien created by this Security Instrument c�r Lender's security interest. f3orr��wer may
<br /> cure such a default and reinstate, as provided in paragraph 18, by causing the ac(iem or pre�ceeding to bc clismissed with a ruling
<br /> that, in Lender's good faith determination, precludes forfeiture of the Burrower's interest in the Property �r other material
<br /> impairment of the lien createa by this Security Instrument or Lender's security interest. Borrower shall also he in default if
<br /> Borrower, during the loan application process, gave materially false or inaccur�Ue inf�c�rmation or statementti to Lcn�ler(or failecl
<br /> to provide Lender with any muter:al information) in connection with the loan evidenced by the Note, including, but not limited
<br /> to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a
<br /> leasehold, Borrower shafl 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 wriling.
<br /> 7. Protectim� of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements ccmtained in
<br /> this Security Instrument, or there is a legal proceeding that may signiticantly af�fect Lender's rights in the Property (such as a
<br /> proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender niay do and
<br /> pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may
<br /> n�clude paying aiiy sums secured by a lien wllicl� has priority over this Security Instruir�ent, 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 /> '. Lender does not have to do so.
<br /> Any amow�ts 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 reyuesting
<br /> payment.
<br /> 8. 1�lortgage [nsurance. If Lender required mortgage insurance as a condition of making the loan secured hy this Security
<br /> Instrument, Borrc�wer shall pay the premiums required to maintain the mortgage insurance in effect. [f. for any reason, the
<br /> mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to
<br /> obtain coverage substantially eyuivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the
<br /> cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If
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