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99 111832 :
<br /> Borrower's escrow account under the federal Real Estate Settlement Procedures F�ct of 1974 as amended irom time to tima, 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 tirne, collect and
<br /> hold Funds in an amount not to exceed the lesser amount. Lender mey estimate the amount of funds due on the basis of current data
<br /> and reasonable estimates of expenditures of future Escrow Items or otherwise tn accordence with applicable lew.
<br /> The Funds shall be held in an instkutbn whose deposks are insured by a federal agency, instrumeniality, or entfry (including
<br /> Lender, 'rf Lender is such an institution) or in any Federal Home Loan Bank. Lender shali appy the Funds to pay the Escrow Items.
<br /> Lender may not charge Borrower for holding and appying the Funds, annually anayztng the escrow account, or verifying the Escrow
<br /> Items, unless Lender pays Borrower interest on the Funds and applicable law pertnits Lender to make such a charge. However, Lender
<br /> may require Borrower to pay a one-time charge for an independent real estate tex reporting service used by Lender in connectbn with
<br /> this ban, unless applicabie law provides otherwise. Unless an agreement is made or applicable law requires hterest to be paid, Lend�
<br /> shall not be required to pay Borrower any interest or eamings on the Funds. Borrow�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 debRs to the Funds and the purpose for which each debk to the Funds was made. The Funds are pledged as additbnal
<br /> securiry for all sums secured by this Security Instrument.
<br /> if the Funds he�d by Lender eocceed the amounts permitted to be held by applicable law, Lender shall account to Borrower for the
<br /> excess Funds in accordance wkh the requirerr�ents of applicable law. If the amount of the Funds held by Lender at any th�e is not
<br /> sufficient to pay the Escrow Items when due, Lender may so notiy Borrower in wrking, 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 than twelve monthy payments, at
<br /> Lenders sole discretbn.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall prompty refund to Borrower any Funds held by
<br /> Lender. If, under paragraph 21, Lender shall ecquire or sell the Property, Lender, prior to the acquisitbn or sale of the Property, shall
<br /> appy any Funds held by Lender at the time of acquisition or sale as a credit againsC the sums secured by this Security Instrument.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, ail payments received by Lender under paragraphs
<br /> 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third
<br /> to interest due; fourth, to principal due; and last, to eny late charges due under the Note.
<br /> 4. Ch8rge8; Liens. BoROwer shall pay all taxes, assessments, charges, fines and impositions attributable to the Property
<br /> which mey attain prbrity over this Securky Instrument, and leasehold payments or pround rents, if any. Borrower shall pay these
<br /> obligations in the manner provfded in paragreph 2, or M not paid in that menner, 8orrower shall pay them on time directy to the person
<br /> owed payment. Borrower shall prompty (umish 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 /> Borrow� shall prompty discharge any lien which has prbrity over this Security instrument unless Borrower: (a) agrees h wrking to
<br /> the payment of the oblipation secured by the lien in a menner 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 Lenders opinion operate to prevent the enforcement of the Ilen; 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 attain priority over this Security Instrument, Lender may give
<br /> Borrower a notice identiyhg 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 against bss by fire, hezsrds included wkhin the term "extended coverage" and any other hezards, hcluding fbods or
<br /> flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the perbds that Lender :
<br /> requires. The insurance caRier provid'ng the insurence shall be chosen by BoROwer subject to Lender's epproval which shall not be
<br /> unreasonaby withheld. If Borrower feils to maintain coverage descr�ed above, Lender mey, at Lender's option, obtain coverage to
<br /> protect Lender's rights in the Property in accordance wkh paragreph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a stendard mortgage clause. Lender shall have
<br /> the right to hold the policies and renewals. If Lender requires, Bonower shall promptly give to Lender all receipts of paid premiums
<br /> and renewal notices. In the event of bss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make
<br /> proof of bss if not made prompty by Borrower.
<br /> Unless Lender and Borrower otherwise egree in writing, insurance proceeds shall be applied to restoretion or repair of the Property
<br /> damaged, if the restoration or repat is economicely feasible and Lender's security is not lessened. If the restoration or repair is not
<br /> economicaly feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this
<br /> Security Instrument, whether or not then due, with any eoacess peid 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 prxeeds 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 ghren.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shail not extend or postpone the
<br /> due date of the monthy payments referred to in paragraphs 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 damage to the Property prior
<br /> to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the
<br /> acquisrtion.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower'a Loan :
<br /> Application; Leaseholda Borrower shall xcupy, estabiish, and use the Property as Borrower's principal residence within sbcty
<br /> days after the eocecution of this Security Instrument and shall continue to occupy the Property as Borrowe�s prncipal residence for at
<br /> least one year after the date of occupancy, uniess Lender otherwise agrees in writing, which consent shall not be unreasonably :
<br /> withheld, or unless extenuating circumstances exist which are beyond Borrowers cont�ol. BoROwer shali not desVoy, damage or knpair
<br /> the Property, albw the Property to deteriorate, or commR waste o� the Property. Borrower shall be in defauR 'rf any forfeiture actbn or
<br /> proceeding, whether civil or criminal, is begun that in Lender's good faith judgm�t cou�d resuft in forfeiture of the Property or otherwise
<br /> materially 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 Le�der's good fakh :
<br /> determination, precludes forteiture of the BoROwer's interest in the Property or other material impairment of the lien created by this :
<br /> Security InsWment or Lenders security interest. Borrower shall also be in default ff Borrower, during the ban application process,
<br /> gave materiely talse or inaccurate informetioA or statements to Lender (or failed to provide Lender with any materiel information) in :
<br /> connection with the ban evidenced by the Note, including, but not limited to, representatbns conceming Borrower's xcupancy of the
<br /> Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply 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 /> F�029.LMQ(10/9B) Pape 2 of 5
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