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<br />93- 110865
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<br />The Funds shall he held in an institution whose d~posits arc insured hy a federal agency, instrumentality, or entity
<br />'(including Lender. if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall ~pply the Funds to pay the
<br />Escrow hems, Lender may not charge Borrower for hotding and applying the Funds. annually analyzmg. the escrow aeconnt, or
<br />'verifying the Escrow hems, unless Lender pays Borrower interest on the Funds and 11pplicable law penmts Lender to .make su.ch
<br />:} charge. However. Lender may require Borrower to pay a one-time charge for an independent real estate t11X rcpo~\I1g service
<br />u<>ed by Lendcr in connection with this loan, unless applicable law provides otherwise. Unless an ag,rcl:l\\cnt IS made or
<br />applicable law requires interest to be paid. Lender shall not be required to puy Borrower any interest or eamin~s on the Funds.
<br />Borrower and Lender r <l)' agree in writing. however, that interest shall be paid on the Funds. Lender shall give to B~rrower.
<br />without charge. an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each
<br />debit to the fOunds was made. The Funds arc pledged as additional security for all sums secured by this Security Instrument.
<br />If thl': Funds held by Lender exceed the amounts permitted to be held by applicable law. Lender shall account to Borrower
<br />for the excess Funds in accordance with the requirements "f applicable law. If the amount of the Funds held by Lender at any
<br />timc is not sufficient to pay the Eserow Items when due, Lender may so notify Borrower in writing, and, in :;uch case Borrower
<br />shall pay to Lender the amount necessary to make up the deficiency. Borrower shaH make up the deficiency in no more than
<br />twelve monthly payments. at Lender's sole discretion.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any
<br />Funds held by Lender. If. under paragraph 21, Lender shall acquire or sell the Property. Lender. prior to the acquisition or sale
<br />of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit ugainst the sums secured by
<br />this Security Instmment.
<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;
<br />third. to interest due; fourth, to principal due; and last, to any late charges due under the Note.
<br />4. Charges; LIens. Borrower shull puy all taxes, assessments. charges, fines and impositions attributable to the Property
<br />which may altain priority over this Security Instrument, and lea<;ehold payments or ground rents, if any. Borrower shall pay
<br />these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly
<br />to the person owed payment. Borrower shall promptly furnish to .Lender all notices of amollnts to be paid under this paragraph.
<br />If Borrower makes these puyments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which ha<; priority over this Security Insl'Ument unless Borrower: (a) agrees in
<br />writing to the payment of the obligation secured by the lien in a manner acceptable to Leno~r; (b) contests in good faith the lien
<br />by. or defends against enforcement of thc lien in, legal proceedings which in the Le.: r's opinion operate to prevent the
<br />enforcement of the lien; or (c) sccures from the holder of the lien an agreement satisfactOlJ to Lender subordinating the lien to
<br />this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over
<br />this Security Instrument. Lender may give Borrower u notice identifying the lien. Borrower shall satisfy the lien or take one or
<br />more of the actions set forth ubove within 10 duys of the giving of notice.
<br />5. Hal.ard or Property Insurance. Borrower shall keep the improvemenls now existing or hereafter erected on the
<br />Property insured ngainst loss by fire. ha7..ards included within the term "extended covenlge" and any olher hazards. including
<br />floods or flooding, for which Lender requires insurance. This insurance shan be maintained in the amounts and for the periods
<br />that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subjecl to Lcnder's approval
<br />which shall not be unreasonably withheld. If Borrower filils to maintain coverage described above. Lender may, at Lender's
<br />option. obtain covemge to protect Lender's rights in the Property in accordance with paragraph 7. .
<br />All :nsurance policies and renewals shall be acceptable to Lender and shall include a sta'ldard mortgage clause. Lcnder
<br />shall havc thc right to hold the polkies and renewals. If Lender requires, Borrower shall promptly give to Lender illl receipts of
<br />p,Iid premiums and renewal 'loticcs. In the event of loss. Borrower shall give prompt notice to the insurance carrier and Lender.
<br />Lender may make proof of los~' if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurancc proceeds shall be applied 10 restoration or repair of the
<br />Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. 'fthe restorillion or
<br />repair is not ecollomically feasible or Lender's security would be lessened, the insurance proceeds shnll be applied to the sums
<br />secured by this Security Instmment. whether or not then due, with any excess paid to Borrower. If Borrower ab:\Ildons the
<br />Property. or docs not answer within 30 days a notice from Lender that the insurance carrier has offered to seltle a claim, lhen
<br />Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums
<br />secured by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of procel'ds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or chunge ~he amount of the puyments. If
<br />under paragraph 21 the Property is acquired by Lender. Borrower's right to uny insurance policies and proceeds resulting from
<br />damage to the Property prior [0 the acquisition shall pass to Leuder to the extent of the sums secured by this Serurity Instrument
<br />immcdiillely prior to [l1e acquisition.
<br />6. ()ccu"anc~.. Preservation, I\falntenance and Protl'Ction of the Prnperty; norrower's Loan Application; Lellscholds.
<br />Borrower shall occupy. establish. and use lhe Property as Borrower's principal residence within sixly days after the execution of
<br />this Security Instrument amI shall cOlVinue 10 occupy the Property as Borrower's principal residence for al leasl one year after
<br />tile date or occupancy. unless Lender otherwise agtees in writing, which consent shall not be unreasonahly withhcld, or unless
<br />ntenuating ci rcumstances exist which are beyond Bofrower's control. Borrower shall not deslrt1y, damage or impair the
<br />Property, a:low thc Property 10 deterior:t!.:, or commit waste on the Property. Borrower ~hall he in default if llllY forfeiture
<br />action iH proceeding. whether ci~i1 or criminal, is hegun lhat in Lcnder's good faith judgmcnt could resull in forfeiture or thc
<br />Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may
<br />cure such ,1 default and reinstate, as provided in paragraph 18, by causing the action fJr proceeding to be dismissed with a ruling
<br />that. in Lender's good failh determination. precludes forfeiture of the Borrower's intere~t in the Property or other material
<br />impairment of the lien created by thi,,~ Security Instrumcnt or Lender's security interest. Borrower shall also he in dcfuult if
<br />Borrower. during (he Joan applicarion process, gave materially false or inaccurate information or stlllements to Lender (or failed
<br />!o provide Lender with any material informution) in connection with the loan evidenced hy the Note. including, hut not limited
<br />to, representations l'OnL'erning Borrower's occupancy of the Property as a principal rcsidence. If this Sccurity Instrument is on a
<br />Icasehold. Borrower shall l'OlTlply with till the provisions of the ICllse. If Borrower acquires fee tille to lhe Property, the
<br />Icasellllld and the fee tillt: shall not merpe unlt:ss Lender agrees to the merger in writing.
<br />7. Protection of I ,ender's Rights In the Property. If Borrower fllils to perform the covenunts and agreemellls contained in
<br />this Secllri!y lnslnllllclll, or there is a It:gill proceeding that may significantly IIffect Lender's rights in the Property (such liS II
<br />prlll'eedillg ill hankrupl<:Y. prohate. for cOlldemnation or forfeiture or to enforce IlIws or regulutions), then Lender muy do IInd
<br />pay for whalevn is necessary to prolect the value of the Property amI Lender's rights in the Property. Lender's actions nHlV
<br />illL.ludc payill}C ;1l1Y sums sl'cured hy a liell which has priority over this Security Instrument, appearing in l'ourt. paying
<br />lC;ISOIl:lhlc attorIlL'Ys' fel's and entering Oil the Property to make repairs. Allhough Lender may take action under this parugraph
<br />7. I.endn dIlC" nol have tl/ do so,
<br />, AllY ,Irnl/Unt.s disbllrsl'd hy Lemler under Ihis paragrarh 7 shall h.ecome mlditional debt or Borrowcr secured hy this
<br />SL'L.llr;:y Instrurnl~nt, Unless (lorrower and Lender llgree 10 other lerms 01 paymelll. these umount<; shall hear ir:terest from the
<br />d;llc Ilf dishllrselllenl at Ihe Note rate and shall he payable, with interest, upon notice from Lender to Borrower requesting
<br />pdynlellt ,
<br />R. i\1.ortgHgl' Insurance. If Lendcr required n](~rtgage insl,Jr:lIlee as n condition of lllHking lhe loan sccured hy this Security
<br />IlIstrlIIIIl'nt. Bprrowcr ,hall pay thl' 11I"l'1I11l11ll'. reqUIred to maintain thc, mo~!gage ilburance in efft,cl. If, for illly reason. the
<br />11l<lrlgagc InSllralll'e CI)\Tr<lge reqlll[ul hy Lender lapses (~r ceases to be ,lJ1l'1le~1. B~)rrower shall pay the premiullls required If
<br />obtain l'over:igl' sUhSt,1I111;Iily l'qulvalclll 1<' the mO,rlgage ."lsu~ance ~revtnusly In effect, at a cost substantially equivalent to the
<br />cpsl 10 Bor(ower oj the rll'ltlgage IlIsurance preViously III effect. from an alternate mortgage insurer approved hy Lender. If
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<br />I\IU'" :' 01 .1
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<br />Form 3028 9/90
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