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Loan Number: �21011740 Servicing Number: 2235�4�7 1 �- 0 5 9 3 Date: 10�29�99
<br /> 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Bonower shall pay to
<br /> Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") for: (a) yearly taxes
<br /> and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold payments
<br /> or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums,
<br /> if any; (e) yearly mortgage insurance premiums, if any; and (fl any sums payable by Borrower to Lender, in accordance with the
<br /> provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These items are called "Escrow Items." Lender
<br /> may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage
<br /> loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from
<br /> time to time, 12 U.S.C. Section 2601 et 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
<br /> of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in
<br /> accordance with applicable law.
<br /> The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
<br /> (including Lender, if Lender is such an institution)or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the
<br /> Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or
<br /> verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such
<br /> a charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate tax reporting service used
<br /> by Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or applicable law
<br /> requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and
<br /> 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
<br /> made. The Funds aze 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
<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
<br /> pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve
<br /> monthly 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
<br /> Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale
<br /> of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by
<br /> this Security Instrument.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs
<br /> 1 and 2 shall be applied: first, to any prepayment chazges due under the Note; second, to amounts payable under pazagraph 2; third,
<br /> to interest due; fourth, to principal due; and last, to any late charges due under the Note.
<br /> 4. Chuges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property
<br /> which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these
<br /> obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the
<br /> person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under t�tfs 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 Borrower: (a) agrees
<br /> in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b)contests in good faith the lien
<br /> by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the
<br /> enforcement of the lien; or(c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this
<br /> Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this
<br /> Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more
<br /> of the actions set forth above within 10 days of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br /> insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or
<br /> flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender
<br /> requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not
<br /> be unreasonably withheld.If Borrower fails to maintain coverage described above, Lender may, at Lender's option,obtain coverage
<br /> to protect Lender's rights in the Property in accordance with paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall
<br /> have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid
<br /> premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender
<br /> may make proof of loss if not made promptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing, or applicable Law otherwise requires, insurance proceeds shall
<br /> be applied first to reimburse Lender for costs and expenses incurred in connection with obtaining any such insurance proceeds, and
<br /> then, at Lender's option, in such order and proportion as Lender may determine in its sole and absolute discretion, and regardless
<br /> of any impairment of security or lack thereof: (i) to the sums secured by this Security Instrument, whether or not then due, and
<br /> to such components thereof as Lender may determine in its sole and absolute discretion; and/or (ii) to Borrower to pay the costs
<br /> and expenses of necessary repairs or restoration of the Property to a condition satisfactory to Lender. If Borrower abandons the
<br /> Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, Lender
<br /> may collect the insurance proceeds. Lender may, in its sole and absolute discretion, and regardless of any impairment of security
<br /> or lack thereof, use the proceeds to repair or restore the Property or to pay the sums secured by this Security Instrument, whether
<br /> 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
<br /> postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under
<br /> paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage
<br /> to 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 /> Page 2 of 6 NED10012(OS-28-98) �
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