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Bormwers escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended irom time to tkne, 12 U.S.C.
<br /> 2601 et seq. ("RESPA"), unless 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 estirnate the amount of tunds due on the basis of current data�
<br /> and reasonabie estimates of expenditures 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, Mstrumentality, or entity (includh�
<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 f
<br /> Lender may not charge Borrower for holding and applying the Funds, annually anayzing the escrow account, or ver'rfying the Escrow�
<br /> Items, unless Lender pays Borrower interest on the Funds and appiicable law permits Lender to make such a charge. However, Lender�
<br /> may require Borrower to pay a one-time charge for an independent real estate tex reporting service used by Lender in connection with
<br /> this ban, unless applicable law provides otherwise. Unless an agreement is made or appl'�cable law requkes interest to be paid, Lend�
<br /> shall not be required to pay BoROw� any interest or eamings on the Funds. BoROw�and Lender may agree in writing, however, that�
<br /> interest shall be paid on the Funds. Lender shall give to Borrower, wRhout 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 additbnal
<br /> security for all sums secured by this Security Inshument.
<br /> If the Funds held by Lender exceed the amounts pertnitted to be held by applicable law, Lender shall account to Borrower for the
<br /> eacess Funds in accordance with the requkements of applicablB law. If the amount of the Funds held by Lender at any time is not
<br /> sufficient to pay the Escrow Items when due, Lender may so notiy Borrower in wrktng, end, fn such case Borrower shell pay to Lender
<br /> the amount necessary to make up the deflcfency. Bo►rower shall make up the deficfency in no more than twelve monthy paym�ta, at
<br /> Lenders sole discretion.
<br /> Upon payment in full of all sums secured by this Securiry Instrument, Lender shall promptly re(und to Borrower any Funds held by
<br /> Lender. If, under peragraph 21, Lender shall acquke or sell the Property, Lender, prbr to the acquisRbn or sale of the Property, shall
<br /> appy any Funds held by Lender at the tkne of acqufsition or sale as a credk agahst the sums secured by this Security Instrument.
<br /> 3. Application of Payments. Unlesa applicable law provides otherwise, all peyments receNed by Lender under para�raphs
<br /> t and 2 shall be applied: ffrst, to any prepayment charqes due under the Note; second, to amounts payable under paragreph 2; thkd
<br /> 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 knposkbns attributable to the Property
<br /> which may attain priority over this Securiry Instrument, and leasehold payments or ground rents, ff any. Borrower shail pay these
<br /> obligations in the manner provided in paragraph 2, or M not paid h that menner, BoROwer shall pay them on time directly to the person
<br /> owed payment. BoROwer shall promptly tumish to Lender aH notbes of emounts to be paid under this paragraph. If Borrow� mekes
<br /> these payments d�ecty, BoROwer shall promptly Iumish to Lender receipts ev(dencing the payments.
<br /> BoROwer shall promptly discharge any lien whfch has priorky over this Securky Instrument unless Borrower: (a) agrees in wrking to
<br /> the payment of the obligation secured by the lien h a manner acceptable to Lend�; (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 Uen; or (c)
<br /> secures trom 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 attain prioriry over this Security Instrument, Lender may give
<br /> BoROwer a notice identifyhg the lien. Borrower shall satisry the lien or take one or more of the act(ons set forth above wkhin 10 days
<br /> of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereaRer erected on the
<br /> Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, includk�g floods or
<br /> ffooding, for which Lender requires insurance. This insurance shall be meintained in the amounts end for the periods that Lender
<br /> requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lenders approval which shall not be
<br /> unreasonaby wkhheld. If Borrower fails to maintain coverage descrbed above, Lender may, at Lender's option, obtah coverage to
<br /> protect Lender's rights in the Property in accordance with paragraph 7.
<br /> Ail insurance policies and renewals shall be acceptable to Lender and shall hclude a standard mortgage clause. Lender shall have
<br /> the right to hold the poifcies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of pald premiums
<br /> and renewal notices. In the event of bss, Borrower shall gNe prompt notice to the insurance canier and L�der. Lender may make
<br /> proof of loss ff not made promptly by Borrower.
<br /> Unless Lender and BoROwer otherwise agree in writing, insurance proceeds shall be applied to restoration or repat of the Property
<br /> damaged, 'rf the restoration or repair is economicaly feas�b�e and Lender's security is not lessened. Ii the resto�ation or repair fs not
<br /> economicaly feasibie or Lender's securky would be lessened, the hsurance proceeds shall be applied to the sums secured by this
<br /> Security Instrument, whether or not then due, wkh any excess paid to Borrower. If Bo►rower abandons the Property, or does not
<br /> answer within 30 days a notice from Lender that the hsurance carrier has offered to settie a claim, then Lender may coliect the
<br /> insurance proceeds. Lender may use the proceeds to repa(r 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 BoROwer 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 paragrephs 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 policles and proceeds resufting irom damage to the Property prbr
<br /> to the acquiskbn shall pass to Lender to the extent of the sums secured by this Security Instrum�t immediately prbr to the
<br /> acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br /> Application; Leaseholds. Borrower shalt occupy, establish, and use the Property as Borrower's pnc�ipal residence within sixty
<br /> days aRer the execution of this Securiry Instrument and shall continue to occupy the Property as Borrowei's principal residence for et
<br /> least one year after the date of occupancy, unless Lender otherwise agrees tn writing, which consent shall not be unreesonably
<br /> withheld, or unless extenuating circumstances exist which are beyond BoROwers control. BoROwer shall not destroy, damage or impair
<br /> the Property, allow the Property to deteriorate, or commR waste on the Property. BoROwer shall be in defauR if any forfekure action or
<br /> proceeding, whether civil or criminal, is begun that in Lender's good takh judgment could result in forfeiture of the Property or othervvise
<br /> materialy impair the lien created by this Security Instrument or Lenders security interest. Borrower may cure such a defauk and
<br /> reinstate, as provided h paragraph 18, by causing the action or proceedhg to be dismtssed with a ruling that, in Lende�'s good feith
<br /> determination, precludes forfeiture of the BoROwe�'s interest in the Property or othe� material impairtnent of the lien created by this
<br /> Security Instrument or Lender's security interest. BoROwer shall also be in defauR if BoROwer, durng the ban application process,
<br /> gave materialy false or inaccurate infoRnation or statements to Lender (or failed to provide Lender wkh any material fnformatbn) in
<br /> connectbn wkh the ban evidenced by the Note, includhg, but not limited to, representatbns conceming Borrower's occupancy of the
<br /> Property as e principal residence. If this Security Instrument is on a leasehold, Bonower shell comply with all the provisions of the
<br /> lease. If Borrower acquires fee title to the Property, the leasehold and the fee tkie shall not merge unless the Lender agrees to the
<br /> merger in writing.
<br /> Form 3048 6/00
<br /> F1029.LM0 (10/97) Paps 2 of 5
<br /> 588
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