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200004477
<br />Borrowers -swow account under the federal Poll E811111141 Saimment Procedum AN of 1974 as amended from tkne to time, 12 U.B,C.
<br />2601 at seq. ("FIESPA'), unless another law that applies to the Funds eau is leaser amount, If so, Lander may, at any time, oo&eot and
<br />hold Funds In an amount not to sxosed the lesser amount. Lender may estimate the amount of funds due on the basis of current data
<br />and reasonable estimates of oxpendKures of future Escrow Items or otherwise In accordance with applicable law.
<br />The Funds shop be held In an institution whose deposits are insured by a federal agency, Instrumentally, or entity (Including
<br />Lender, K Lander Is such an Institution) or In any Federal Home Loan Bank. Lender shaft apply the Funds to pay the Escrow hems.
<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 permits lender to make such a charge. However, Lender
<br />may require Borrower to pay a on►a -tams charge for an independent real estate tax reporting service used by Lander In connection with
<br />this loan, unless applicabb law provides otherwise. Unless an agreement is made or applicable law requires Interest to be paid, Lender
<br />shall not be required to pay Borrower any Interest or earnings on the Funds. Borrower and Lender may agree in writing, however, that
<br />Interest shall be paid on the Funds. Lander shall gfve to Borrower, without charge, an annual accounting of the Funds, showing
<br />oredlts and debks to the Funds and the purpose for which each dsbk to the Funds was made. The Funds are pledged as addltlonal
<br />security for ale sums secured by this Security Instrument.
<br />If the Funds hold by Lander exceed the amounts permitted to be held by applicable law, Lender she& account to Borrower for the
<br />excess Funds In accordance with the requirements of applcable law. If the amount of the Funds held by Lender at any time Is not
<br />sufficient to pay the Ewmw Items when due, Lender may so notify Borrower in writing, and, In such case Borrower shall pay to Lander
<br />the amount neoeesary to make up the deficiency. Borrower shall make up the deficiency In no more than twelve monthly payments, at
<br />Lenders sole discretion.
<br />Upon payment In N& of at sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by
<br />Lender. If, under paragraph 21, lender shalt acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall
<br />apply any Funds held by Lander at the tine of acquisition or sale as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Vnlese applicable taw provides otherw1w 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 x third
<br />to Interest due; fourth, to principal due; and last, to any late charges due under the Note.
<br />4. Charges; Liene. Borrower shall pay all moos, assessments, charges, fines and Impositions aarbutable to the Property
<br />which may attain priority ovor this Security Instrument, and leasehold payments or ground runts, If any. Borrower shell pay those
<br />obligations In the manner provided In paragraph 2, or it not paid in that manner, Borrower 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 />thew pnymonts directly, Borrower shag promptly furnish to Lender recoiptt ovideneing the payments.
<br />Borrower shot promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees In writing to
<br />the payment of the obligation secured by the ten In a manner, acceptable to Lender; (b) contests In good faith the Ilan by, or delends
<br />against enforcement of the lien in, legal proceedings which in the Landoea opinion operate to prevent the enforcement of the Ron; or (c)
<br />secures from the holder of the lion an agreement satisfactory to Lender subordinating the lien to this Security Instrument. 11 Lender
<br />dotorminea that any part of the Property Is subject to a lion which may attain priority over this Security Instrument, Lander may glue
<br />Borrower a notice Wenlitylrng the lien. Borrower shag satisfy the lion or take one or more of the actions set forth above whhh 10 days
<br />of the giving of notice.
<br />V I1azard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property Insured against loss by lie, hazards Included within the term "extended eov*rago" and any other hazards, Including floods or
<br />flooding. for which lender requires Insurance, This Insurance shat be maintained In the amounts and for the periods that Lender
<br />requires. The Insurance oaffter providing the Insurance shag Do chosen by Borrower subject to Lender's approval which shag not be
<br />unreasonably withheld. If Borrower falls to maintain coverage described above, Lender may, at Lender's option, obtain oovorage to
<br />protect Lender's rights In the Property in accordanoe 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 requires, Borrower shall promptly giro to Lender all receipts of paid premiums
<br />and renewal notices. In the event of loss, Borrower shot give prompt notice to the insurance carrier and Lander. Lander may make
<br />proof of loss r not made promptly by Borrower.
<br />Unless Lander and Borrower otherwise agree In writing, insurance proceeds shall be applied to restoration or repair of the Property
<br />damaged, It the restoration or repair Is economically feasible and Lenders 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 duo, with any excess paid to Borrower. If Borrower abandons the Property. Or does not
<br />answer within 30 days a notice from Lander that the Insurance carrier 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 glven.
<br />Unless Lander and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the
<br />due data 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 scqulred by tender. Borrowers right to any insurance policies and proceeds resulting from damage to the Property prior
<br />to the acquisition shag pass to Lendar to the G%Wt of the sums secured by this Security Instrument Immediately prior to the
<br />acquisition.
<br />6. Occupancy, Preservatlon, Maintenance and Protection of the Property; Borrower's Loan
<br />Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrowers principal residence within sixty
<br />days after the avcutbn of this Security instrument and shall continue to occupy the Property as Borrowers principal residence for at
<br />least one year after the date of occupancy, unless Lender otherwise ogre" in writing, which consent shag not be unreasonably
<br />withheld, or unless exlenuadng circumstances exist which are beyond Borrowers control. Borrower shall not destroy, damage or Impair
<br />the property. allow the Property to daterlorale, or commit waste on the Property. Borrower shall be In defaul t any tot"te action or
<br />proceeding, whether olvil or crknins6 Is begun that In Lenders good faith judgment could result in forfeiture of the Property or otherwise
<br />materially Impelr the lien created by this Security Instrument or Lender's security Interest. Borrower may cure such a default and
<br />relnstals, as provided In paragraph 18. by causing the action or proceeding to be dismissed with a ruing that. In Lenders good faith
<br />doormination. precludes forfeiture of the Borrowers Interest In the Property or other raterial impairment of the lien created by this
<br />Security Instrument or Lender's securt y Interest. Borrower shag also be In default I Borrower. during the ban application process,
<br />flays materially taiga or Inaoourate Information or statements to Lander (or failed to provide Lender with any material inlormalbn) In
<br />connection with the loan evldenced by the Note, Including, but not limited to, representations conceming Borrowers occupancy of the
<br />Property as a prinofpal residence. If this Security Instrument Is on a leasehold, Borrower shat comply with all the provlslone of the
<br />lease. If Borrower acquires fee tide to the Property, the leasehold and the tee We shell not merge unless the Under agrees to the
<br />marpar In writing.
<br />ran" was aav
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