|
� 99 11203 �
<br /> Lender may, at any tme, collect and hold Funds in an amount not to euceed the meximum amount a lender for a federaly related mortgage
<br /> loan may require for Borrowers escrow account under the federal Rsel Estate Settl�nent 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 estimates of expenditures of tuture Escrow Items or otherwise in accordance with applicable law.
<br /> The Funds shall be held in an institution whose deposits are insured by a federai agency, instrumentality, or entity (including Lender, if
<br /> Lender is such an institution) or in any Federal Home Loan Bank. Lender shall appy the Funds to pay the Escrow Items. Le�der may not
<br /> charge Borrower for holding and appying the Funds, annualy anayzing the escrow account, or verifying the Escrow Items, unless Lend�
<br /> pays Borrower interest on the Funds and applicable law p�mits 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, unlesa applicable law
<br /> provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay
<br /> Borrower any interest or eamings on the Funds. Borrower end Lender may agree in writing, however, that interest shall be paid on the Funds.
<br /> Lender shall give to Bonower, without charge, an annual accounting of the Funds, showing cred'Rs and debits to the Funds and the purpose
<br /> for which each debk to the Funds was made. The Funds are pledqed as additional security for ail sums secured by this Security Instrument.
<br /> If the Funds held by Lender exceed the amounts permitted to be heid by applicable law, Lender shall account to Borrower for the
<br /> excess Funds in accordance with the requirements of applicable law. If the amount of the Funds he�d by Lender at any time is not sufficient
<br /> to pay the Escrow Items when due, Lender may so notity Borrower in writing, and, in such case Borrower shall pay to Lend� the amount
<br /> necessary to make up the deficiency. Borrower shall meke up the deficiency in no more than twelve monthy payments, at Lenders sole
<br /> discretion.
<br /> Upon payment in (ull of ell sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by
<br /> Lender. If, under paragraph 21, Lender shall ecquire or sell the Property, Lender, Prior to the acquisition or sale of the Property, shall apply
<br /> any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument.
<br /> 3. Applicat�on of Payments. Unless epplicable law provides otherwise, 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 eny late charges due under the Note.
<br /> 4. Charges; Liens. Borrower shali pay all taxes, assessments, charpes, fines and impositions attributable to the Property whfch may
<br /> attain prioriry over this Security instrument, end leasehold payments or ground rents, if eny. Borrower shall pay these obligatbns in the
<br /> manner provided in paragraph 2, or if not paid 'n that manner, Borrower shali pay them on time directly to the person owed payment.
<br /> BoROwer shall prompty fumish to L�der ali notices of amounts to be paid under this paragraph. If Bonower makes these payments
<br /> directy, Borrower shall prompty fumish to Lender receipts evidencng the payments.
<br /> Borrower shali prompty discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the
<br /> payment of the obligation secured by the lien in a menner acceptable to L�der; (b) contests in good faith the lien by, or defends against
<br /> enforcement of the lien in, legal proceedings which in the Lenders opinion operate to prevent the enforcement of the lien; or (c) secures irom
<br /> the holder of the lien an agreernent satisfactory 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 priority over this Security Instrum�t, Lender may give Borrower a notice identi(ying
<br /> the lien. Borrower shall satisfy 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. sorrower shan keep the improvements now eocisting or nereatter erected on the Property
<br /> insured agahst bss by fire, hazards included within the term "eoctended coverage" and any other hazards, hcluding fbods or floodhg, for
<br /> which Lender requires insurance. This insurance shall be meintained in the amounts and for the periods that Lender requires. The insurance
<br /> carrier providing the insurance shall be chosen by Borrower subject to Lende�s approval which shall not be unreasonaby withheld. If
<br /> Borrower fails to maintain coverege desc�ibed above, Lender may, at Lender's option, obtain coverage to protect Lenders rights tn the
<br /> Property h accordance with paragraph 7.
<br /> All insurance policies arsd renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the
<br /> right to hold the policies and renewals. If Lender requires, Borrower shall prompty give to Lender all receipts of paid premiums and renewal
<br /> noC�ces. In the event of bss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of bss if not
<br /> made prompty by Borrower. �
<br /> Uniess Lender and Borrower otherwise agree in wrking, insurence proceeds shall be applied to restoration or repair of the Property
<br /> damaged, 'rf the restoration or repair is economically feasi�le and Lender's security is not lessened. If the restoration or repair is not
<br /> economically feasble or Lende�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, wkh any excess paid to Borrower. If Borrower abandons the Property, or does not answer wfthin 30
<br /> days a notice firom Lender that the insurance caRier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender
<br /> may use the proceeds to repair or restore the Properry or to pay sums secured by this Security Instrument, whether or not then due. The
<br /> 30-day period will begin when the notice is given.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to pnc�ipal shall not extend or postpone the due
<br /> date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the Property
<br /> is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition
<br /> shall pass to Lender to the e�ct�t of the sums secured by this Security instrument immediatey prior to the acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application;
<br /> Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sbcry days after the execution
<br /> of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after 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 Borrower's control. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or
<br /> commit waste on the Property. Borrower shall be � defauk 'rf any forfeiture action or proceeding, whether civil or criminal, is begun that in
<br /> Lender's good fakh judgment could resuft in forfeiture of the Property or otherwise materialy impair the lien created ,by this Security
<br /> Instrument or Lender's security interest. Borrow� may cure such a defauk and reinstete, es provided in paragraph 18, by causing the action
<br /> or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Bonowers interest in the
<br /> Property or other material impairtnent of the lien created by this Security Instrument or Lenders security interest. Borrower shall also be in
<br /> defauR 'rf Borrower, during the ban application process, gave materiely false or inaccurate information or statements to Lender (or failed to
<br /> provide Lender with any meterial information) in connection with the ban evidenced by the Note, including, but not limited to, representatbns �
<br /> conceming Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall i
<br /> compy wkh all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge
<br /> unless Lender agrees to the merger in writing.
<br /> Form 3028 B/BO S
<br /> .1,,,,',,.
<br /> F400B.LMO(11/99) Paps 2 of 5
<br />
|