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99 1120 ?�4
<br /> • Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally related mo�tgage
<br /> loan may require for Borrowers escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to
<br /> time, 12 U.S.C. 2601 et seq. ("RESPA"), unless another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time,
<br /> collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of funds due on the basis of
<br /> current data and reasonable estimetes of e�enditures of future Escrow Items or otherwise in accordance with applicable law.
<br /> The Funds shall be held in an institution whose deposks are insured by a federal egency, instrumentality, or entity (includinq Lender, if
<br /> Lender is such an institution) or in any Federal Home Loan Bank. Lender shali apply the Funds to pay the Escrow Items. Lender may not
<br /> charge Borrower for holding and applying the Funds, annualy analyzing the escrow account, or veriying the Escrow Items, unless Lender
<br /> pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. However, Lender may require Borrower to
<br /> pay a one-time charge for an independent real estate tex reporting service used by Lender in connection with this ban, unless applicable law
<br /> provides otherwise. Unless an agreement is made or epplicable Isw requires interest to be paid, Lender shali not be requ'red to pay
<br /> Borrower any interest or eamings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds.
<br /> Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose
<br /> for which each debit to the Funds was made. The Funds are pledged as additional security for ail sums secured by this Security Instrument.
<br /> If the Funds held by Lender exceed the amounts permitted to be held by applicabie law, Lender shall account to Borrower for the
<br /> excess Funds in accordance wkh the requirements of applicable law. If the amount of the Funds held by Lender at any tirne i� not sufNcient
<br /> to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borcower shall pay to Lender the amount
<br /> necessary to make up the deficiency. Borrower shall rr�ke up the deficiency in no more than twelve monthy payments, at Lenders sole
<br /> discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall promptiy refund to Borrower any Funds held by
<br /> Lender. If, under paragraph 21, Lender shall acquire or seli the Property, L�der, Prior to the acquiskbn or sale of the Property, shall appy
<br /> any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Secur'ity Instrument.
<br /> 3. Application of Payments. Unless applicable law provides othervvise, all payments received by Lender under paragraphs 1 and
<br /> 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third to interest
<br /> due; fourth, to principal due; and last, to any late charges due under the Note.
<br /> 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property whfch may
<br /> atta� priority over this Security Instrument, and leasehold payments or ground rents, ff any. Borrower shall pay these oblipetions in the
<br /> manner provided in paragraph 2, or 'rf not paid in that menner, BoROwer shall pay them on time dKecty to the person owed payment.
<br /> Borrower shall prompty fumish to Lender ait notices of amounts to be paid under this paragraph. If Borrower makes these payments
<br /> d�ectly, Borrower shalt prompty fumish to Lender receipts evidencing the payments.
<br /> Borrower shall prompty discharge any lien which has priority over this Security Instrument unless BoROwer: (a) agrees in writing to the
<br /> payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends agahst
<br /> enfo�cement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from
<br /> the holder of the lien an agreement satisfectory to Lender subordinating the lien to this Security Instrument. If Lender determines that any
<br /> part of the Property is subject to a lien which may attain prioriry over this Security Instrument, Lender may give Borrower a notfce tdentifying
<br /> the lien. Borrower shall satisy the lien or take one or more of the actions set forth above wkhin 10 days of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall ksep the improvements now existing or hereaR� erected on the Property
<br /> insured against loss by fire, hazerds included within the term "extended coverage" and any other hazerds, including fbods or fboding, for
<br /> which Lender requires insurance. This insurance shall be maintained in the emounts and for the periods that Lender requires. The insurance
<br /> carrier provid'mg the insurance shall be chosen by Borrower subject to L�der's epproval which shall not be unreasonaby wfthheld. If
<br /> Borrower fails to mainta� coverage descr�ed above, Lender may, at Lender's option, obtain coverage to protect Lender's riahts in the
<br /> Property in accordance with paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lend� and shall include a standerd mortgage clause. Lender shall have the
<br /> right to hoid the policies and renewals. If Lender requires, Bonower shall prompty give to L�der all receipts of paid premiums and renewal
<br /> notices. In the event of loss, Borrower shail give prompt notice to the insurance carrier and Lender. Lender may make proof of bss if not
<br /> made prompty by Borrower.
<br /> Unless Lender and Borrower otherwise agree in wrking, insurance proceeds shall be applied to restoration or repair of the Property
<br /> damaged, 'rf the restoration or repair is economically feas�te 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 Security
<br /> Instrument, whether or not then due, with any excess paid to BoROwer. If Borrower abandons the Property, or does not answer wkhin 30
<br /> days a notice from Lender that the insurance car�i� has offered to settle a claim, then Lender may collect the insurance prxeeds. Lender
<br /> may use the proceeds to repair or restore the Property or to pey sums secured by this Security Instrument, wheth� or not then due. The
<br /> 30-day period wili begin when the notice is giv�.
<br /> Unless Lender and Borrower otherwise agree in wrking, any application of proceeds to principal shell not extend or postpone the due
<br /> date of the monthly payments refened to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the Property
<br /> is acquired by Lender, BoROwer's right to any insurance policies end proceeds resufting from damage to the Prop�ty prior to the acquiskion
<br /> shall pass to Lender to the extent of the sums secured by this Security instrum�t immediately prior to the acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br /> Leaseholds. Borrowar shall occupy, establish, and use the Property as Borrower's principal residence within sixty days a(ter the executbn
<br /> of this Security Instrument and shall continue to occupy the Property es Borrower's principal residence for at least one year aiter the date of
<br /> occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonaby withheld, or unless extenuating circumstances
<br /> exist which are beyond Borrowers control. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorete, or
<br /> commR waste on the Property. Bonower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is bepun that in
<br /> Lender's good faith judgment could resuk in forfeiture of the Property or othervvise materialy impair the lien created by this Security
<br /> Instrument or Lenders security interest. Borrower may cure such a defauR and reinstete, as provided in paragreph 18, by causing the action
<br /> or proceeding to be dismissed with a ruling that, in Lender's good fakh determination, precludes forfeiture of the Borrower's fnterest in the
<br /> Property or other material impairtnent of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be h
<br /> defauR 'rf Borrower, during the ban application process, gave materialy false or inaccurate information or statements to Lender (or failed to
<br /> provide Lender with any materia� information) in connection with the ban evidenced by the Note, including, but not limked to, representations
<br /> conceming Borrower's occupancy of the Property as a principal residence. If this Secur'ity Instrument is on a leasehold, Borrower shall i
<br /> comply with all the provisions of the lease. If Borrower acqu'res fee title to the Property, the leasehold and the fee tRle shall not merge �
<br /> unless Lender agrees to the merger in wrking.
<br /> Form 3028 B/90
<br /> F4009.LM0 (11/99) Paps 2 ot 5
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