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99 111708
<br /> � Borrow�r's escrow account under the federal Real Estete Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C.
<br /> 2601 et seq. ("RESPA"), unless another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and ,
<br /> hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of funds due on the basis of current data
<br /> and reasonable estimates of expenditures of future Escrow Items or othervvise in accordance with applicable law.
<br /> The Funds shall be held � an instkution whose deposits are insured by a federal agency, instrumentality, or entity (including
<br /> Lender, 'rf Lender is such an instdution) or in any Fed�al Home Loan Bank. Lender shall appy the Funds to pay the Escrow Items.
<br /> Lender may not charge Borrower for hold'ng and appying the Funds, annualy anayzing the escrow account, or verifying the Escrow
<br /> Items, unless Lender pays Borrower interest on the Funds and applicable law permks Lender to make such a charge. However, Lender
<br /> may require Borrower to pay a one-time charge for an independent real estate tax reporting service used by Lender in connection wkh
<br /> this loan, uniess applicable 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 eamings on the Funds. Borrower and Lender may agree in writing, however, that
<br /> interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing
<br /> credits and debits to the Funds and the purpose for which each debk to the Funds was made. The Funds are pledged as additional
<br /> security for all sums secured by this Security Instrument.
<br /> If the Funds held by L�der excesd the amounts permitted to be held by applicable law, Lender shall account to Borrower for the
<br /> excess Funds � accordance with the requirements of applicable tew. If the amount of the Funds held by Lender at any time is not
<br /> sufficient to pay the Escrow Items when due, Lender may so notiy Borcower in writing, and, in such case Borrower shall pay to Lender
<br /> the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more then twelve monthy payments, at
<br /> Lenders sole discretion.
<br /> Upon payment in fult of all sums secured by this Security instrume�t, Lender shall prompty refund to Borrower any Funds held by
<br /> Lender. If, under paragraph 21, Lender shall acquKe or sell the Property, Lender, prior to the acquisition or sale of the Property, shall
<br /> apply any Funds held by Lender at the time of acquisition or sale as a credk against the sums secured by this Securiry Instrument.
<br /> 3. Application of Payments. Unless applicable Iaw provides otherwise, all payments received by Lender under paragraphs
<br /> 1 and 2 shall be applied: f�st, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third
<br /> to interest due; fourth, to princ�al due; and last, to any late chargas due under the Note.
<br /> 4. Charges; 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 paym�ts or ground rents, 'rf any. BoROwer shall pay these
<br /> obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pey them on time directly to the person
<br /> owed payment. BoROwer shall prompty fumish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes
<br /> these payments directly, Borrower shall prompty fumish to Lender receipts evidencing the payments.
<br /> Borrower shall prompty discharge any lien which has prior'ity over this Security Instrument unless Borrower: (a) egrees in writing to
<br /> the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends
<br /> against enforcement of the lien in, legal proceedings which in the Lende�s opinion operate to prevent the enforcement of the lien; or (c)
<br /> secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender
<br /> determines that any part of the Property is subject to a lien which may atta� prioriry over this Security Instrument, Lender may give
<br /> Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br /> of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Property insured ageinst loss by fire, hazerds included within the term "extended coverage" and any other hezards, including floods or
<br /> fboding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that L�der
<br /> requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shail not be
<br /> unreasonaby withheld. If Borrower fails to meinta� coverage descrbed above, Lender may, at Lender's option, obtain coverage to
<br /> 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 inciude a standard mortgage clause. Lender shall have
<br /> the right to hold the policies and renewals. If Lender requires, Borcower shall prompty give to Lender all receipts of paid premiums
<br /> and renewal notices. In the event of loss, BoROwer shall give prompt notice to the insurance carrier and Lender. Lender may make
<br /> proof of loss if not made prompty 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, 'rf the restoration or repair is economically feasible and Lender's securiry is not lessened. If the restoration or repak is not
<br /> eco�omically feasible or Lender's security would be lessened, the insurance proceeds shall be appl'�ed to the sums secured by this
<br /> Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not
<br /> answer within 30 days a notice from Lender 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 given.
<br /> Unless Lender and Borrower othervvise agree in writing, any application of proceeds to principal shall not extend or postpone the
<br /> due date of the monthy payments referred to in paragrephs 1 and 2 or change the amount of the payments. If under paragraph 21
<br /> the Property is acquired by Lender, Borrowers right to any insurance policies and proceeds resuRing from damege to the Property prior
<br /> to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediatey prior to the
<br /> acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br /> AppliC8t1011; L@BSehOIdB. Borrower shall occupy, establish, and use the Property as Bonowers principal residence within sbcty
<br /> days after the euecution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at
<br /> least one year atter the date of occupancy, unless Lender oth�wise agrees h writing, which consent shall not be unreasonaby
<br /> withheld, or unlass extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damege or impair
<br /> the Property, allow the Property to deteriorate, or commk waste on the Property. BoROwer shall be in defauR if any forfekure action or
<br /> proceeding, whether civil or criminal, is begun that in Lenders good faith judgm�t could resuR in forfeiture of the Property or otherwise
<br /> materialy impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a defauR and
<br /> reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good fekh
<br /> determination, precludes forfeiture of the Borrower's �terest in the Property or other material impairment of the lien created by this
<br /> Securiry Instrument or Lenders security interest. Borrower shall also be in defauft 'rf Borrower, during the ban application process,
<br /> gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in
<br /> connection with the loan evidenced by the Note, including, but not limited to, representations conceming Borrowe�s occupancy of the i
<br /> Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall compy wkh all the provisions of the
<br /> lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless the Lender agrees to the
<br /> merger in writing.
<br /> Form 3028 B/BO
<br /> F102B.LMa(10/9B) Pags 2 of 5
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