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<br /> 94-104705
<br /> The Funds !,hall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
<br /> (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the
<br /> Escrow Items. Lender may not charge Borrower for holding and applying the Funds. annually analyzing the escrow account, or
<br /> verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such
<br /> a charge. Howeve=r, Lender may require Borrower to pay a one-time charge for an independent real estate tax reporting service
<br /> used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or
<br /> applicable law requires interest to be paid. Lender shall not b,- required to pay Borrower any interest or earnings on the Funds.
<br /> Borrower and Lender may agree in writing, however, that interest shall be, paid on the Funds. Lender shall give to Borrower,
<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 Funds was trade. The Funds are pledged as additional security for all sums secured by this Security Instrument,
<br /> If the Funds held by Lendcr exc=eed the amounts permitted to be held by applicable law, Lender shall account to Borrower
<br /> for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any
<br /> time is not sufficient to pay the Escrow Items when due. Leader may so notify Borrower in writing, and, in such case Borrower
<br /> shall pay to Lender the amour.: necessary to make up the deficiency. Borrower shall make up the deficiency in no more than
<br /> twelve month!v 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 heir' by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Under, prior to the acgtrtsitien or sale
<br /> of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by
<br /> this Security Instrument.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments ;ectived by Lender under paragraphs
<br /> 1 and 2 shall bA applied: first, to any prepayment charges due under the Note; second, to r_.naunts 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 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, 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 ow,-4J payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph.
<br /> If Borrower makes these payments directly. Borrower shall promptly furnish to Lender receipts evidencing the payments.
<br /> Borrower shrill promptly discharge any lien which has priority over this Security Instrumenr unless Borrower: (a) agrees in
<br /> writing to the paymem of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in goad faith the lien
<br /> by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the
<br /> enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory 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 a notice identifying the lien. Borrower shall satisfy the lien or take one or
<br /> more of the actions set forth above within 10 days 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 loss by fire, hazards included within a.,e term "extended coverage' and any other hazards, including
<br /> floods or fioodins;. f )r which Lender requires insurance. This insurance shrill be maintained in the amounts and for the periods
<br /> that Lender rcqui:es. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval
<br /> which shall not be unreasonably withheld. If Borrower fails to maintain covet-age described above, Lender may, at Lender's
<br /> option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgagc cause. lender
<br /> shall have the right to hoid the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of
<br /> paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender.
<br /> Lender may make proof of loss if riot made promptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the
<br /> Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If tite restoration or
<br /> repair is not economically feasible or Lender's security would be lessened, the insurance procecAs shall be applied to the sums
<br /> secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the
<br /> Property, or doer; not answer within 30 days a. notice from Lender that the insurance carrier has offered to settle a claim, then
<br /> Lender may colivo 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 proceeds to pri-~7ipal shall not extend or
<br /> postrutne the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payntcuts. If
<br /> under paragraph ?.1 the Property is acquired by Lender. Borrower's right to any insurance policies and procceds resulting from
<br /> damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument
<br /> immediately prior, to the acquisition.
<br /> b. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds,
<br /> Borrower sh=ill occupy. establish, and use the Propetty as Borrower's principal residence within sixty days after the execution of
<br /> this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after
<br /> the deic of occupancy, unless Lender otherwise agrees in writing, which consent shalt' not be unreasonably withheld, or unless
<br /> extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or umpair the
<br /> :Topers, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any forfeiture
<br /> act on or proceeding, whether civil or criminal, is begun that in Lender's gcxul faith judgment could result in forfeiture of the
<br /> Property or olhervisc materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may
<br /> cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling
<br /> that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or other material
<br /> impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if
<br /> Borrower, during the loan application process, gave materially false or inaccurate information or, statements to Lender (or failed
<br /> to provide LerdGr with any material information) in connection with t;te loan evidenced by the Note, including, but not limited
<br /> to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security instrument is cot a
<br /> leasehold. Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the
<br /> leasehold and the fee title shall not merge unless Lender agrees to the merger in writing.
<br /> 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreetnems contained in
<br /> this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a
<br /> proceeding in bankruptcy, prorate. for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and
<br /> pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may
<br /> include paying any sums secured by a lien which has priority o%,cr this Security !nstrumcnt, appearing in court. paying
<br /> TcLuonable attorncys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph
<br /> 7, Lender does not have to do so.
<br /> Any atrtsrunts disbursal by Lender under this paragraph 7 shall become additional debt of Borrower sect-ed by (Iris
<br /> Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear int. from the
<br /> (late of disbursrrncnt at the Note rate and shall be payable, with interest, ulKm notice from Lender to Borrower requesting
<br /> payment.
<br /> 8. Alrrtgage Insurance. Ir Lender required mortgage insurance as a condition of making the loan secured by this Security
<br /> Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If. for any reason, the
<br /> mortgage insurance coverage required by Lender lapses or (cases to be in effect. Borrower shall pay th~~ premiums required to
<br /> obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the
<br /> cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If
<br /> Rape 2 of 4 Form 3028 9!90
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