|
04-28 -2000 FNMA/FHLMC DEED OF TRUST Page 2 of 5
<br />Loan No 20154 (Continued)
<br />the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day
<br />monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") for: (a) yearly taxes and assessments which may attain
<br />priority over this Security Instrument as a kn on the Property; (b) yearly leasehold payments or ground rents on the Property, N any; (c) yearly
<br />hazard or property insurance premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, If any; and (f) any
<br />sums payable by Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage Insurance premiums.
<br />These items are called 'Escrow Items." Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender
<br />for a federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as
<br />amended from time to time, 12 U.S.C. Section 2801 at seq. ("RESPA"), unless another law that applies to the Funds sets a lesser amount. If so,
<br />Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of Funds due on
<br />the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law.
<br />The Funds shah be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is
<br />such an Institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items. Lender may not charge Borrower for
<br />holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower Interest on the
<br />Funds and applicable law permits Lender to make such a charge. However, Lender may require Borrower to pay a one -time charge for an
<br />Independent real estate tax reporting service used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an
<br />agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the
<br />Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge,
<br />an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The
<br />Funds are pledged as additional 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 excess Funds
<br />In accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time is not sufficient to pay the Escrow
<br />Items when due, Lender may so notify Borrower in writing, and, in such case Borrower shall pay to Lender the amount necessary to make up the
<br />deficiency. Borrower shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion.
<br />Upon payment In fuh of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. If,
<br />under paragraph 21, Lender shah acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by
<br />Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument.
<br />& Application of Paynonts. Unless applicable law provides otherwise, all payments received by Lender under paragraphs i and 2 shall be
<br />applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third, to interest due; fourth, to
<br />principal due; and last, to any late charges due under the Note.
<br />4. Charges; Liens. Borrower shah pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain
<br />priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the manner provided in
<br />paragraph 2, or If not paid in that manner, Borrower shah pay them on time directly to the person owed payment. Borrower shall promptly furnish to
<br />Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to
<br />Lender receipts evidencing the payments.
<br />Borrower shah promptly discharge any hen which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the
<br />payment of the obligation secured by the hen in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends against
<br />enforcement of the hen in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the
<br />holder of the Non an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the
<br />Property is subject to a Non which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the Den. Borrower
<br />shall satisfy the Den or take one or more of the actions set forth above within 10 days of the giving of notice.
<br />S. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against
<br />loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which Lender requires
<br />Insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the
<br />Insurance shah be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain
<br />coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph
<br />7.
<br />AN Insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to
<br />hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the
<br />event of loss, Borrower shah give prompt notice to the Insurance carrier and Lender. Lender may make proof of loss If not made promptly by
<br />Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, if
<br />the restoration or repair Is economically feasible and Lender's security Is not lessened. If the restoration or repair is not economically feasible or
<br />Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then
<br />due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the
<br />insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the
<br />Property or to pay sums secured 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 application of proceeds to principal shall not extend or postpone the due date of
<br />the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the Property Is acquired by
<br />Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to
<br />the extent of the sums secured by this Security Instrument Immediately prior to the acquisition.
<br />e. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. Borrower shall
<br />occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of this Security Instrument and shall
<br />continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees
<br />in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control.
<br />Borrower shah not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be In
<br />default If any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith Judgment could result in forfeiture of the
<br />Property or otherwise materially Impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default
<br />and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith
<br />determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security
<br />Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or
<br />Inaccurate Information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by
<br />the Note, Including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security
<br />Instrument Is on a leasehold, Borrower shah comply with all the provisions of the lease. If Borrower acquires fee titre to the Property, the leasehold
<br />and the fee tltle shah not merge unless Lender agrees to the merger In writing.
<br />7. Protection of Lender's Rights In the Property. If Borrower fails to perform the covenants and agreements contained in this Security
<br />Instrument, or there Is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate,
<br />for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the
<br />Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action
<br />under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument.
<br />Unless Borrower and Lender agree to other term of payment, these amounts shall bear interest from the date of disbursement at the Note rate and
<br />
|