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<br />8G-- 100945
<br />Lender pays Borrower interest on the Funds and applicable law perm :ts Lender to make such a charge. Borrower a,-,d
<br />Lender may agree in venting that interest shall be paid en the Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower. without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit ra the Funds was made. The Funds are pledged as additional secur it1 for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due. the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. I£ the
<br />amount of the Funds field by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary to makeup the deficiency in one or more payments as required by Lender_
<br />Upon Payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note. second. to prepayment charges due under the
<br />Note. third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes. assessments, charges, tines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if an}.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2. or if not paid in that manner. Borrower sha.il
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish tci Lender ail notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower; iai
<br />aerees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender: (b) contests to good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a Gen which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the Iien. Borrower shall satisfy the lien or take one or more of the actions set torth above within 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire• hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lenders approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hole the policies and renewals. If Lender requires. Bi?rrocvcr ,hail promptiy give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss. Borrower shall : prompt notice io the insurance
<br />earner and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restorati on or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened. the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument. whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect_ the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. The period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal ;hall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs i and 2 or :hange the arnoup.t of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to an_v insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured 'by this Security
<br />Instrument immediately prior to the acquisition.
<br />`. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquires fee title to the Property, the leasehold and
<br />fee tide shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Properry and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by alien which has pnor »y oser this Security'
<br />Instrument, appearing in court. paying reasonable attorneys' fees and entering on the Property tip make repairs. Although
<br />Lender may take action under this paragraph 7. Lender does not have re do so
<br />Any arnounts disbursed by Lender under this paragraph .. shall beco me additional deht of Burrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree io other terms of payment, ihese amounts shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable, with interest. upon notice From Lender to Borrower
<br />requesting payment.
<br />If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument.
<br />Borrower shall pay the premiums required to maintain the insurance in effect until such time is the requirement for the
<br />insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law
<br />S. Irapeetion. lender or its agent may make reasonable entries upon and inspections of the Property. Lender
<br />shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br />9, Condemnation. The proceeds of any award or claim for damages, direct or :onsequeritial. in cnne:ti 'n wilt,
<br />any condemnation or other taking of any par. of the Property. or for conveyance in lieu of condemnation, are .'iere.,y,
<br />assigned and shall be paid t) Lender
<br />In the event of a total taking tf the Property, the ; roce -ds shall It+e appiiect to the e,lme ;ei tired by :has Se^ uru.
<br />Instrument, whether of not then dim with any earns {'rid c. B1,rr wrr In he rent t s rh, P
<br />untess 130TT"wer an"' Len -let ,thcrwlsr ag l�e n w t it{. 'r.r a .s 4 t red `s i h s S .,. c ~i !-C
<br />the am,.,unt •i .tie i?r <n: P1: is •Ti li.ii.ilyd h^ ,.:�1 „w,r,& lira t _.. „ ..�, a i ,,. .i c •a: i.i
<br />)er'tre the tak. ng, ;t dCd i'.V Ir 1:if7 .4, Kt •,31t1Y ,:{ tt• it
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