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Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C.
<br /> 2601 et seq. ("RESPA"), unless another taw 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 emount. Lender may estimate the amount of funds due on the basis of current data
<br /> and reasonable estimates of expenditures of tuture Escrow Items or otherwise in acco�dance with appiicable lew.
<br /> The Funds shail be held in en institution whose deposks are insured by a federal agency, hstrumentality, or entity (including
<br /> Lender, 'rf Lender is such an institution) or in any Federai 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 analyzing the escrow account, or veri(ying 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 on�time charge for an indep�dent reai estate te�c reporting service used by L�der in connectbn with
<br /> this ban, unless applicable law provides othenvise. 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, wkhout charge, an annual accounting of the Funds, showing�
<br /> credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as addkanal
<br /> security for ell sums secured by this Security Inshument. �.,►
<br /> If the Funds held by Lender exceed the amounts permitted 4o be held by applicable lew, Lender shall account to Borrower for the F�
<br /> excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time is not iV
<br /> sufficient to pay the Escrow Items when due, Lender may so noti(y 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 discretion. �
<br /> Upon payment in full of all sums secured by th�s Security Instrument, Lender shali prompty refund to Bortower any Funds held by
<br /> Lender. If, under paregraph 21, Lender shell acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall
<br /> appy any Funds held by Lender at the time of acquisition or sale as a credk against the sums secured by 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 charges due under the Note; second, to amounts payable under paragraph 2; third
<br /> to interest due; fourth, to principal due; and last, to any late charges due under the Note.
<br /> 4. Charges; Liens. BoROwer 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, ff any. Borrower shall pay these
<br /> obligations in the manner provided in paragraph 2, or if not paid 'n that manner, Borrower shaN pay them on time directly to the person
<br /> owed payment. Borrower shall promptly fumish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes
<br /> these payments dKecty, Borrower shall prompty fumish to L�der receipts evidencing the payments.
<br /> Borrower shall prompty discharge any lien which has priority over this Securiry Instrument unless Borrower: (a) agrees h wrkhg to
<br /> the payment of the obligatbn secured by the lien in a manner acceptable to Lender; (b) contests in good faRh the lien by, or defends
<br /> against enforcement of the lien in, legal proceed'ngs which in the Lenders opinion operate to prevent the enforcement of the lien; or (c)
<br /> secures from the holder of the lien an agreement satisfactory to L�der subordinating the lien to this Security Instrument. If Lender
<br /> detertnines 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 ident'rfying the lien. Borrower shall satisry the lien or take one or more of the actions set forth above wRhin 10 days
<br /> of the giving of notbe.
<br /> 5. Hazard or Property Insurance. Borrower snau keep the improvements now eX�sc�n9 or nerearcer erecced on cne
<br /> Property insured against bss by fire, hazards included wkhin the term "extended coverage" and any other hazards, including floods or
<br /> fboding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods thet Lender
<br /> requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br /> unreasonaby withheld. If Borrower fails to maintain coverage descr�ed above, Lender may, at Lender's option, obtain coverage to
<br /> protect Lender's rights in the Property in accordance wkh paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to L�der and shall include a standard mortgage cisuse. Lender shall have
<br /> the right to hold the policies and renewals. If Lender requires, Borrower 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 mede prompty by BoROwer.
<br /> Unless Lender and Borrower otherwise agree in wrking, insurance proceeds shall be applied to restoration or repair of the Property
<br /> damaged, if the restoration or repa'r is economicaly feasible and Lender's security is not lessened. If the restoration or repeir fs not
<br /> economicaly feasible or Lenders security would be lessened, the insurance prxeeds shall be applied 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 caRier has otfered to settle a ciaim, 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 oth�wise agree in wrking, 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 resuking from damage to the Property prior
<br /> to the acquisition shall pass to Lender to the ext�t of the sums secured by this Security Instrument immediately prior to the
<br /> acquiskion.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br /> Application; L@88@hO1d8. Borrower shall occupy, establish, and use the Property as Borcower's principal residence within sbdy
<br /> days atter the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at
<br /> least one year a(ter the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonaby
<br /> withheld, or unless extenuating circumstances eocist which are beyond Borrowei's cont�ol. BoROwer shall not destroy, demage or knpair
<br /> the Property, albw the Property to deteriorate, or commit waste on the Property. Borrower shall be in default 'rf any forfeiture action or
<br /> proceeding, whether civil or criminal, is begun that in Lenders good fakh judgment could resuR in forfekure of the Property or otherwise
<br /> materialy impair the lien created by this Security Instrument or Lenders security interest. BoROwer may cure such a defauR and
<br /> reinstate, as provided in paragrapn 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good fakh
<br /> determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the li� created by this
<br /> Security Instrument or Lenders security interest. Borrower shall also be in default M Borrower, during the loan application process,
<br /> gave materialy false or inaccurete information or statements to Lender (or failed to provide Lender with any material informatbn) in
<br /> connection wkh the ban evidenced by the Note, including, but not limited to, rep�esentatbns conceming Bo►rower's occupancy of the
<br /> Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shali comply with ali the provisions of the
<br /> lease. If Borrower acquires fee title to the Property, the leasehold and the fee titls shall not merge unless the L�der agrees to the
<br /> merger in writing.
<br /> Form 3028 B/YO
<br /> F1029.LM0(10/99) Paps 2 of 5
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