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<br /> not to exceed the maximum amount a tender for a federally related mortgage ban may require for t3orrewer's escrow account under the
<br /> federal Real Estate Settlement Procedures Ad of 1074 as amended from tits to time, 12 U.S.C. 2e01 at seq. ('RESPA'), unless another law
<br /> that, applies to the Funds sets a lesser amount. It so, Lender may, at any time, coped and hold Funds In an amount not to exceed the
<br /> lesser amount, Lender may estimate the amount of funds due on the basis of currant data and r'aarwwwNe estimates of expenditures of
<br /> future Escrow Items or otherwise In ac oordanoe, with applicable law.
<br /> The Funds shalt be held in an institution whose deposits are Insured by a federal agency, instrumentality, or entity (Including Lender, N
<br /> Lender Is such an Institution) or In any Federal Home Loan Bank Lender shall apply the Funds to pay the Escrow items. Lender may not
<br /> charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow items, unless Lender
<br /> pays Borrower interest on the Funds and upplfcable law parrs is Lender to make such a charge. However, Lander may require Borrower to
<br /> pay a one-time charge for an Independent real estate tax reporting service used by Lender In connection with this loan. unless applicable law
<br /> provides otherwise. Unless an agreement Is made or apple" law requires interest to be paid, Lander shelf not be required to pay
<br /> Borrower any Interest or earnings on the Funds. Borrower and Lender may agree In writing, however, that Ittereat .ahall be paid an the Funds.
<br /> Lender shag give to Borrower, without charge, an annual aocountirng of the Funds, showing credits and debits to the Funds and the purpose
<br /> for which each debit to the Fundnr was made. The Funds are pledged as additional security for all sums secured by this Security Instrument.
<br /> K the Funds held by Lender exceed the amounts pemdtted to be held by applcable law, Lender shall account to Borrower for the.
<br /> excess Funds In accordance with „he raclu! manta of applicable law. N the amount of the Funds held by Lender at any Im Is not sufficient
<br /> to psy the Escrow hems when dine, Larder may so notify Borrower In writing, and, In such case Borrower shag pay to Lender the amount
<br /> necessary to make up the dehclet,cy. Borrower shag make up the deficiency In no more than twelve monthly payments, at Lander's sole
<br /> discretion,
<br /> Upon payment In full of all sums secured by th:a Security Instrument, Lender shall promptly refund to Borrower any Funds held by
<br /> Lender. N, under paragraph 21, Lender shag acquire or sag the Property, Lender, Prior to the acquisition or sale of the Property, shelf apply
<br /> any Funds held by Lender at the time of acquisition or sale as a cxadlt against the sums secured by this Security insrrumer+t
<br /> 3. Application of Psyments. Unless applicable law provides otherwise, all payments received by Lender under paragnephs 1 and
<br /> 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third, to Merest
<br /> due; fourth, to 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
<br /> may attain priority over this Security Instrument, and leasehold peymenfa or ground rants, N any. Borrower sf,all pay these obligations In the
<br /> manner provided In paragraph 2, or If not paid In that manner, Borrower shag pay them on time directly to the person owed payment
<br /> Borrower shall promptly furnish to Lender all notices of amounts to be pa;d under this paragraph, N Borrower makes these payments
<br /> directly, Borrower shall promptly furnish to Lender receipts evidencing the payments.
<br /> Borrower shall promptly discharge any Hen which has priority over this Security Instrument unless Borrower. (a) agrees In writing to the
<br /> payment of the obllgAon secured by the lien In. s manner acceptable to Lender; (b) contests in good Usual the Hen by, or defends against
<br /> enforcement of the lien In, legal proceedings which In the Lender's opinion operate to prevent the enlorcommit of the Hen; or (c) secures from
<br /> the holder of the Han an agreement satisfactory to Larder subordinating the Hen to this Security Instrument. N Lender determines that any
<br /> part of the Property is subject to a Hen which may attain priority u.er this Security Instrument, Lender may give Borrower a notice Identifying
<br /> the lien. Borrower mhall satisfy the Hen or take one or more of the actions set Wh above within 10 days of the giving of notice,
<br /> 5. Hazard or Property Insurance. Borrower shah koV the Improvements now existing or hereafter erected on the Property
<br /> Insured against loss by fire, hazards Included within the tern 'extended coverage" and any other hazards, including floods or flooding, for
<br /> which Lender requires insurance, This Insurance shag be maintained in the amounts and for the periods that Lender requires. The Insurance
<br /> carrier providing the Insurance shall be chosen by Borrower subject to Lender's approval which shall not ba unreasonably withheld. N
<br /> Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the
<br /> Property in accordance with paragraph 7.
<br /> Ai Insurance policies and renewals shaft be acceptable to Lender and shag include a standard mortgage clause. Lender shag have the
<br /> right to hold the policies and renewals. It Lender requires, Borrower shag promptly give to Lender all receipts of paid premiums and renewal
<br /> notices, In the event of loss, Borrower shaft give prompt notice to the Insurance carrier and Lender. Lender may make proof of loss N not
<br /> made promptly by Borrower,
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
<br /> damaged, N the restoration or repair Is economically feasible and Lenders security Is not lessened. N 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 Security
<br /> Instrument; whether or not then due, with any excess paid to Borrower, If Borrower abandons the Property, or does not answer within 30
<br /> days a notice from Lender that the Insurance carrier has offered to settle a claim, then Lender may coW the Insurance proceeds, Leader
<br /> may uae the proceeds to repair or restore the Property or, to pay sums secured by this Security Instrument, whether or not then due. The
<br /> 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 shag not extend or postpone the due
<br /> date of the monthly payments referred to paragraphs i and 2 or change the amount of the payments. N under paragraph 21 the Property
<br /> is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the aopuisitlon
<br /> shall pass to Lender to the extent of the sums secured by this Security Instrument Irrnadlatey prior to the acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br /> Application; Leaseholds. Borrower shag occupy, establish, and use the Property as Borrower's principal residence within sixty days
<br /> after the execution of this Security Instrument and shag ccv tGnue to occupy the Property as Borrowers principal residence for at least one
<br /> year after the date of occupancy, unless Lender otherwise agrees yn wrlting, which consent shag not be unreasonably withheld, or unless
<br /> extenuating circumstances exist which are beyond Borrowers control, Borrowty shelf not destroy, damage or Impair the Property, allow the
<br /> Property to deteriorate, or commit waste on the Property. Borrower shag be In default N any forfeiture action or proceeding, whether cm or
<br /> criminal, la begun that In Lenders good faith judgment could result In forfeiture of the Property or otherwise materially Impair the Hen created
<br /> by this Security Instrument or Landeee security Interest. Borrower may cure such a default and reinstate, as provided In paragraph 10, by
<br /> causing the action or proceeding to be d ernlesed with a ruling that, In Lenders good faith determination, precludes forfeiture of the
<br /> Borrower's Interest in the Property or other material Impairment of the Ian created by this Security Instrument or Lender's security Interest.
<br /> Borrower shag also be In default if Borrower, during the loan application process, gave materially false or Inaccurate Information or statements
<br /> to Lender (or failed to provide Lender with any material Infomtatlon) In connection with the ban evidenced by the Note, Including, but not
<br /> limited to, rerresentatlons concerning Borrower's occupancy of the Property as a prlndpal residence. N this Sscuntcy instrument is on a
<br /> leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acgAnss fora title to the Property, the leasehold and the
<br /> fee title shall not morgn unless the Lender agrees to the merger In writing,
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<br /> Fr029.LM(a (2/93) Page 2 of S Form 3028 9/410.
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