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9 � �i0 '7412
<br /> 3. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions
<br /> attributable to the Property which may attain priority over this Security Instrument and leasehold payments or
<br /> ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in
<br /> that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly
<br /> furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower make these payments directly,
<br /> Borrower shall promptly furnish to Lender receipts evidencing the payments.
<br /> Borrower shall promptly discharge any tien which has priority over this Security Instrument (excluding any
<br /> first Deed of Trust) unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in
<br /> a manner acceptable to Lender; (b) contests in good faith the lien by, or defend against enforcement of the lien in,
<br /> legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien or forfeiture of any
<br /> part of the Property; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating
<br /> the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which
<br /> may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower
<br /> shall satisfy the lien or take one or more of the actions set forth above within ten (10) days of the giving of notice.
<br /> 4. Hazard 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
<br /> for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that
<br /> Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's
<br /> approval which shall not be unreasonably withheld.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage
<br /> clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly
<br /> give to lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt
<br /> notice to the insurance carner and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration
<br /> or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not
<br /> lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the
<br /> insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
<br /> any excess paid to Borrower. If Borrower abandons the Property, or does not answer within thirty (30) days a
<br /> notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance
<br /> 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 thirty (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
<br /> extend or postpone the due date of the payment referred to in paragraphs 1 and 2 or change the amount of the
<br /> payment. If under paragraph 17 the Property is acquired by Lender, Borrower's right to any insurance policies and
<br /> proceeds resulting from damage to the Pr�perty prior to the acquisition shall pass to Lender to the extent of the
<br /> sums secured by this Security Instrument immediately prior to the acquisition.
<br /> 5. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or
<br /> substantially change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument
<br /> is on a leasehold, Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the
<br /> Property, the leasehold and fee title shall not merge unless Lender agrees to the merger in writing.
<br /> 6. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br /> covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may
<br /> significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation
<br /> or to enforce laws or regulationsl, then Lender may do and pay for whatever is necessary to protect the value of
<br /> the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien
<br /> which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering
<br /> on the Property to make repairs. Although Lender may take action under this paragraph 6, Lender does not have
<br /> to do so.
<br /> Any amounts disbursed by Lender under this paragraph 6 shall become additional debt of Borrower secured
<br /> by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall
<br /> bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from
<br /> Lender to Borrower requesting payment.
<br /> If Lender requires mortgage insurance as a condition of making the loan secured by this Security Instrument,
<br /> Borrower shall pay the premiums required to maintain the insurance in effect until such times as the requirement
<br /> for the insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law.
<br /> 7. Inspection. Lender or Lender's agents may make reasonable entries upon and inspectiens of the
<br /> Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for
<br /> the inspection.
<br /> 8. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in
<br /> connection with any condemnation or other taking of any part of the Property, or for conveyance in lieu of
<br /> condemnation, are hereby assigned and shall be paid to Lender.
<br /> In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this
<br /> Security Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking
<br /> of the Property, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security
<br /> Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount
<br /> of the sums secured immediately before the taking,divided by (b) the fair market value of the Property immediately
<br /> before the taking. Any balance shall be paid to Borrower.
<br /> If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor
<br /> offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within thirty (30) days
<br /> after the date the notice is given, Lender is authorized to collect and apply the proceeds, at Lender's option, either
<br /> to restore or repair the Property or to pay the sums secured by this Security Instrument, whether or not then due.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not
<br /> extend or postpone the due date of the yearly payments referred to in paragraphs 1 and 2 or change the amount
<br /> of such payments.
<br /> 9. Borrower Not Released; Forbearance by Lender Not a Waiver. Extension of the time for payment
<br /> or modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor
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