|
20040331.
<br />Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for all sums
<br />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
<br />for the excess funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time
<br />is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower shall pay
<br />to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve monthly
<br />payments, at Lender's sole discretion.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If Lender shall acquire or sell the Property after acceleration under paragraph 22, Lender, prior to the acquisition
<br />or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured
<br />by this Security Instrument.
<br />3. Application of Payments. Unless applicable law or Lender's regulations provide otherwise, all payments
<br />received by Lender under paragraphs 1 and 2 shall be applied in the following order of priority:
<br />(1) to advances for the preservation or protection of the Property or enforcement of this lien; (2) to accrued interest due under the
<br />Note; (3) to principal due under the Note; (4) to amounts required for the escrow items under paragraph 2; (5) to late charges and
<br />other fees and charges.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall
<br />pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly
<br />to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If
<br />Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Lender has agreed in
<br />writing to such lien or Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable
<br />to Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's
<br />opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender
<br />subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may
<br />attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien
<br />or take one or more of the actions set forth above within ten (10) days of the giving of notice.
<br />Borrower shall pay to Lender such fees and other charges as may now or hereafter be required by regulations of Lender,
<br />and to pay or reimburse the Lender or Trustee for all of Lender's fees, costs, and expenses in connection with any full or partial
<br />release or subordination of this instrument or any other transaction affecting the property.
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on
<br />the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including
<br />floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that
<br />Lender requires. The insurer providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld. If Borrower fails to maintain coverage described above, at Lender's option Lender may obtain coverage to
<br />protect Lender's rights in the Property pursuant to paragraph 7.
<br />All insurance policies and renewals shall be in a form acceptable to Lender and shall include a standard mortgagee clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts
<br />of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender.
<br />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 or repair of the
<br />Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or
<br />repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured
<br />by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does
<br />not answer within thirty (30) days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may
<br />collect the 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 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 extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If after
<br />acceleration the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to
<br />the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately
<br />prior to the acquisition.
<br />6. Preservation, Maintenance, and Protection of the Property; Borrower's Loan Application; Leaseholds.
<br />Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property.
<br />Borrower shall maintain the improvements in good repair and make repairs required by Lender. Borrower shall comply with all laws,
<br />ordinances, and regulations affecting the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil
<br />or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair
<br />
|