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87- 102985
<br />2. Funds for Tit s and Insurance. Subject to applicable law or loo written wnivrr by IA41111 -l'. Borrower shat In
<br />"tipdaylliodl
<br />lenderon pall
<br />ypaymentsaredueundertheNob• ,untiltheNoteispaidbtfull,asumt "Funds "Ioyuoltuuno•twelftI& nf:
<br />Ia)yearly taxes aI'll assessments which
<br />may attain priority overt It is Security Instrument: Myearly leaschold paymentsor go nand
<br />rental on she Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance I) rendunis, if any. 'I hese
<br />items are called "escrow items," lender may estimate the Funds due on the basis of current lists and rt'as(niuble
<br />future escrow items. eshnuttes of
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state
<br />agency tincluding tender if (ender is such an institution). IAUU[er shall apply the Funds to pay the escrow items. Lender may not
<br />charge for holding still applying Ilia Funds, analyzing the account or verifying the escrow items, unless Lender pays Borrower
<br />interest on the Funds and applicable law Lander
<br />permits to make such a charge. Borrower and Lender stay agree in writing that
<br />interestshall be paidon the Funds. Unlem an agreement is made or applicable law requires iolerest toile I
<br />paid, endershall not be
<br />required to pay Borrower any interest or earnings on the Funds. Loader shall give to Borrower, without charge, an annual
<br />accountingof the Funds showing credits anti debits to the Funds and the porpoise for which each debit to the Funds was made, The
<br />Funds are pledged as additional security for the sums secured by this Security Instrument.
<br />If the itmuunt of the Funds held by Lender, together with [lie future monthly paymentsof Funds payable prior to the due dales
<br />of these escrow items. shall exceed the amount required to pay the escrow items when due, the excess shall be, at Borrower's
<br />option, either promptly repaid to Borroweror credited to Borrower on monthly payments of Fund;. If the atilount of the Funds
<br />held by IA rider is not sufficient to pay lheescrow items when line, Borrowershall pay to lender any amount necessary to snake up
<br />the deficiency lit tine or sore payments as required by Lender.
<br />[)poll payment in fullof ull su ilia secured by this Security Instrument, Iendershall promptly refund to Borrower any Funds
<br />held by Lender I f under paragraph 19the Property is sold of acquired by lender, Lender shall apply, no Inter than immediately
<br />prior to the sale of the Property ur ita acquisition by Lender, any Funds held by I ender at tine time of upplienlion as n credit against
<br />the sums secured by this Security Instrument.
<br />' 3. Application of l'aymtvtts. l )n[ess applicable law provides othrrivise, all payments rvevived by lender under paragraphs
<br />1 and 2 shall he applied: first, le amounts payable under paragraph 2; second, to interest due; anti lust, to principal due.
<br />i. Chargrs: Liens Borrower shall pity ail Loxes, assessments, charges, fines and impositions attributable to the Property
<br />which ?tiny nitam pronty over this Security Instrument, and hvemrhohl payments or ground rents, if any. Borrower shall psy these
<br />obligations in the manner provided in paragraph 2, or if tint psid in that manner. Borrower shall pay them nn title directly to the
<br />per-mm owed payment lorrower shall promptly furnish to lender till notices of amounts to be plod under this paragraph. If
<br />t
<br />Burrower makes these payments directly, Borrower nhall promptly furnish to lender receipts evidencing Ihr puymenL3.
<br />Borroter shall promptly disrharge any lien which has priority over this Security Instrument unless Borrower: (A) agrees in
<br />I Ivritsix to Ifie payntetu of the oldigution secured by Ilie Be•n In it mail ner acceptable to l•Vader: (I)) coral ests in good faith the lien by,
<br />s
<br />or drfvntit agslnst enforcement of the ben in, legal prot•crdisign which in the lenders ill) intots nperalr In pre renl the enforcement
<br />limn
<br />of the or forfeIIitre of any (tart of tite Prolxrty: or (c) secures from the holder of the lien an agreement satisfactory to lender
<br />nuhordinaling the lien to this Security Inntrurnent If I.rndrr tirtrrminrs That any part of the Property is subject [n a lien which
<br />may stlatn prinrtty over this Security Instrument. Lender may give Borrower a notice ulenlifymg the lien Borrower shall satisfy
<br />the lien or take olio ..r more of the actions set forth above within Ill days of the giving of notice.
<br />U. Ilazurd Insurance. Itnrrowt•r shall keep the improvements now existing or hereafter erer!ed on the Properly insured
<br />against loss by fire, hazards included within the. terin "extended coverage" and any other hazards for w hich Lender requires
<br />insurance. Thus insurance shall la• ntatntatned it the itinounts and Inc the ptcriesls that Lender requires. The insurance carrier
<br />providing the insurance shall he chosen by Borrower subjec( to I etider's approval which shall not be unreasonably withheld
<br />All insurance Indic lea and renewals shall be acceptable to IA•n ter and shall include n standard innrtgage clause. Lendershall
<br />have the right to hohd for psobrtes and renewals. If leode•r r•.puu es, Borrower shall promptly give to IAmder all receipts of paid
<br />premiumsundnnwalooticl•s lit theeventoflo— Borrow!.. nha llgivepromptnoticelo theinsurancecarrieranti Lender. (.ender
<br />may retake 11rikaf of loss of tint made promptly by Borrower
<br />Unlrvs Lrn.lrr land lorrower otherwise agree in writing, insurance proceeds shall Ile applied to restoration or repnir of the
<br />Property damaged, If the restoration or repair is economiraily feasible and Lenders security is not lessened, if the restoration or
<br />repair is not economically feasible or lender's security would be lessened. the Insurance proceeds slinil be applied tl! the Burns
<br />secured by ilia, Security Instrument, whether or not then doe, with any excess paid to Borrower. If Norrower abandons the
<br />Properly, or does not answer within all days a nutire from [A'Nler that ilia- Insurance carrier has offered to settle a claim, then
<br />1Amder may collect the Insurance proceeds. tender may time the proceeds to repairor restore the Property or to pay sums secured
<br />by this Security Instrmnent, whether or not then due. The Wrday period will begin when file notice is given.
<br />Unless lender and Norrower otherw ise agree rn writing, stay application of proceeds to princ opal shat l not extend or postpone
<br />the due dale of the monthly payments referred to in paragraphs 1 and 2or change the urnnunl of the puynuvlLS. I f under paragraph
<br />19 the Property is acquired by !.ender. Itorrower's right to any insurance policies and proceedings resulting from damage to the
<br />Property prior ill the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately
<br />k prior to the acquisition.
<br />6. Preservation and SlalntenanceofI"roperly: Leaseholt ls. Borrower shall notdeshny substantially change
<br />,d;unagror
<br />the Property, allow the Properly to deteriorate or commit waste. If this Security Instrument is on a leasehold. Borrower shill[
<br />comply with the provisions of the lease, and if Borrower acquired fee title to the Property, the leasehold and fee title shall not
<br />merge tiniest IAnder agrees to the merger in writing.
<br />7. Prolectiort of Lender's Ilighis In the l•rolrerly; Mortgage Insurance. If Borrower fails to perform the covenants and
<br />agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect lender's rights in
<br />ttie Properly (suet) as a proceeding in bankruptcy, probate, for condemnation or to enforce In%via of regulations), then Lender stay
<br />do and psy 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 over this Security Instrument, appearing in court, paying
<br />reasonable attorney's fees and entering on the Property to make repairs. Although Lender cony tske actiun under this paragraph
<br />7. Lender dos tint have to do no.
<br />Atsy arnuorels dtwbursed Uy Lender this 7 become
<br />under paragraph shall additional debt of Borrow er secured by this Security
<br />lnatrutnsnt. llnlesx lhirrower and Ixtoictr agree to other terms of payment, these amounts shall bear interest front the date of
<br />IlhilniferFtirtil at the flute rate and shall lie payable, with interest. Upon notice from Lender to Borrower requenling payment
<br />If I A ndcr requnrevl mortgage insurance as a eonditmn of inaking Lite Mall "retired by this Security I flail runiunt, Borrower shall
<br />pay the preirunms required to maintain the insurance in effect until such tittle as the requirement for the lo• orange Lernaosle`s In
<br />ft cordanrr N etit Marna.rr's and bender's written agreerent or upplicable law
<br />N . Itigrre'I ions . 1,ender or its agrnt may intake reasonable rnirles ul'on Rod mspccti.o v. of Ibe I'l,ya rte Lender !;Hall give
<br />B.;rrmwrr e,:.tta r at loo, till-,, of or prior In nu uispeelion sper4ving rrawtnlbte caove for the I —jr , I not
<br />eons I'll .•., s.,.., n
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