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�w� oi aoy. � r��irr� �, un�ss env�ner �aw �nat appnes �o [ne runas sets a �esser amount. It so, Lender may, 91 Sny tHi18, coliect 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 current data
<br /> and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicab�e lew. �
<br /> The Funds shall be held in an hstitution whose deposits are insured by a federal agency, �strumentality, 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 analyzing the escrow account, or verifying the Escrow �
<br /> Items, unless Lender pays Borrower interest on the Funds and applicable law pennits Lender to make such a charge. However, Lender �"*
<br /> 4,.
<br /> may require Borrower to pay a one-time charge for an independent real estate tax reporting service used by Lender in connection with �
<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 requ�ed to pay Borrower any interest or eamings on the Funds. Borrower 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 /> �redits 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 Security Instrument.
<br /> If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to Borrower for the
<br /> excess Funds in accordance with the requi�ements of appl'�cable law. If the amount of the Funds held by Lender at any CNne is not
<br /> sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, 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 tweNe monthly payments, at
<br /> Lenders sole discretion.
<br /> Upon payment in (ull of all sums secured by this Security Instrument, Lender shall promptly refund to Borrowe� 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 /> apply 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. Untess applicable law provides otherwise, all payments received by Lender under paragraphs
<br /> 1 and 2 shall be applied: fKSt, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; thkd
<br /> to interest due; fourth, to princ�al due; and last, to any Iste charges due under the Note.
<br /> 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, f�es 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 these
<br /> obligations in the manner provided in paragraph 2, or 'rf not paid in that manner, Borrower shall pay them on time directly to the pe�son
<br /> owed payment. BoROwer shall promptly fumish to Lender a►I notices of amounts to be paid under this paragraph. If Borcower makes
<br /> these payments directly, Borrower shall promptly fumish to Lender receipts evidencing the payments.
<br /> Bonower shall promptly discharge any lien which has priority over this Security Instrument unless Bonower: (a) agrees in writing to
<br /> the payment of the obligation 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 Lenders 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 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 identifying 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 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 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 carrier providing the insurance shall be chosen by Borrower subJect to Lender's approval wh�h shall not be
<br /> unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to
<br /> protect Lenders 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 shall have
<br /> the right to hold the policies and renewals. If Lender requrces, Borrower shall promptly give to Lender all receipts of paid premiums
<br /> and renewal noC�ces. In the event of loss, Bonower shall give prompt notice to the insurance carrier and lender. Lender may make
<br /> proof of loss 'rf not made promptly by Borrower.
<br /> Unless Lender and BoROwer otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
<br /> damaged, 'rf the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not
<br /> economically feasible or Lenders security would be lessened, the �surance proceeds shall be applied to the sums secured by this
<br /> Security Instrument, whether or not then due, wkh any excess paid to BoROwer. If Borrower abandons the Property, or does not
<br /> answer within 30 days a notice from Lender that the insurance caRier has offered to settle a claim, then Lender may collect the
<br /> insurance proceeds. Lender may use the proceeds to repair 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 pr�cipal shall not extend or postpone the
<br /> due date of the monthly 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, Borrower's right to any insurance policies and procseds resufting irom damage to the Property prior
<br /> to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately 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 wkhin sbcty
<br /> days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at
<br /> least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably
<br /> withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or impair
<br /> the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in defauft 'rf any forfeiture action or
<br /> proceeding, whether civil or criminal, is begun that in Lenders good faith judgment could resuft in forfeiture of the Property or otherwise
<br /> materially impair the lien created by this Securfty Instrument or Lender's security interest. Borrower may cure such a default and
<br /> reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lende�'s good fakh
<br /> determination, precludes forfeiture 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. Borrower shall also be in defauR 'rf Borrower, during the loan application process,
<br /> gave materially fatse 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, including, but not limited to, representations conceming Borrowers occupancy of the
<br /> Property as a principal residence. If this Security 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 wrfting.
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