|
F
<br />'86--.101577
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower anv 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 to the Funds was made. The Funds are pledged as addinonal secunry for the sums secured by
<br />thisSecunty Instrument.
<br />If the amount of the Funds head 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 Borrowei s option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due. Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one or more pavrnents as required by Lender.
<br />Upon payment in full of all sums secured by this Sec.inty Instrument, Lender shall promptly refund to Borrower
<br />any Funds herd by Lender. If under paragraph 19 the Prope y is sold or acquired b)' Lender, i_ende -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 fourth, to interest due; and last, to nrncipal due.
<br />4• Charges Liens. Borrower shat] ti
<br />av all taxes, assessments, charges, tines and imposinons annbutable to the
<br />Property which may attain priority over this Security Instrument. and leasehold payments or ground rents, if anv.
<br />Borrower shall pay these obligations in the manner arovided in paragraph 2, or if not paid in that manner. Borrower shah
<br />pay them on time directly to the person owed payment. Borrower shall prompt]% furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shat; 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. fat
<br />agrees in writing to the payment of the obligation secured by the ilea in a manner acceptable to Lender: (b) contests in good
<br />faith the lien bv, or defends against enforcement of the lien in, legal proceedings which in the Lender's ,pinion operate to
<br />Prevent the enforcement of the lien or forfeiture of any part of the Properly; or tc) secures from the holder of the lien an
<br />agreement satrsfaciory to Lender subordinating the lien to this Security Instrument. If Lender determines that any pan of
<br />the Property is subject to a lien which may attain pnority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or Take one car more of the actions set forth abOv2 within id days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now esisring or hereafter erected on the Property
<br />insured against loss by fire, hazards included wrthrn the term "emended coverage • and any other hazards for which Lender
<br />requires insurance. This insurance shall .)e maintained in the amnun,s end t :he per'ods Thai ;_ender requires. T-he
<br />insurance carrier providing the insurance shall be chosen by Born,wer >ubtecr t,:, Lender'; app -n•ai which shall .of be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall :nciude a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires. Bor, osier ;hail pr mpti ,ive to Lender
<br />all receipts of paid premiums and renewal notices. la the event or loss. Borrower shall _i.e prompt nr,tice ;c ?he insurance
<br />carrier and Lender. Lender may make proof of loss ;f not made promptly by Borrnuer.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shah be appiied to restoration or repair
<br />of the Propenv damaged, if the restoration or repair ;s economically feasible and Lender's secure ;% is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's secure would be lessened, the insurance proceeds shaiI be
<br />applied to the sums secured by this Securty Instrument, whether or not then due, with an excess ;aid to 3e rower. if
<br />Borrower abandons the Property, or does not answer :vithm 0 days a nonce from Lender that the insurance career has
<br />offered to settle a claim. then Lender may coiled the insurance proceeds. Lender mac use the proceeds io repair, nr. restore
<br />the Property or to pay sums secured by this Securttc Instrument, whether or Tot hen ,ae Tree _ Cav mod will begin
<br />when the notice is given.
<br />Unless Lender and Borrower, otherwise agree in writing, ant' application f�f roceeds ;.c. pr;n' ;p shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and =sir : hanee the amount of the payments. If
<br />under paragraph 119 the Property is acquired by Lender, Borrower's right to anv insurance poilc;cs and
<br />from damage to the Property prior to the acquisition shall pass to Lender to the ea ;eni c:f the sum pr seeds resulting
<br />s scoured ; this Security
<br />Instrument immediately prior to the acquisition.
<br />6. 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 Secunty Instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquires fee vile to The Property, the leasehold and
<br />fee titleshall 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 ma., signiticantiy affect
<br />Lender's rights in the Properly (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 Property and Lender's rights
<br />in the Property. Lender's actions may include paying any surns secured by a lien which has pnrrit% over this Security
<br />Instrument, appearing in court, paving reasonable attorneys' fees and entering on the Property re, make repairs. Although
<br />Lender may take action under this paragraph 7. Lender does not have to do so
<br />Any amounts disbursed bv Lender under this paragraph "shall become addir;oriai dent -ti Borrnuer secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of pa%mer.t. these amounts shalt bear irrrerest from
<br />the date of disbursement at the Note rate and shall be payable, with interest. upon non„ ''eon; Lender to Bi ?FiQwer
<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 erne as the requirement for the
<br />insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law
<br />S. Inspection. Lender or its agent may make reasonable enines upon and mspeciwns of the Prapert% Lei;der
<br />shall give Borrower notice at the time of or prior to an inspection specifving reasonable cause for the ;nspecr,on.
<br />4. Condemnation. The pr<x Beds of any award or claim for damages. direct or conseq uen tiai, in .on net:, ion .4ith
<br />any condemnation or other taking of any pan rf the Property, or for convoance in ,feu cu deninan;. >n, are here -,
<br />assigned and shall be paid tc, Lender
<br />In the event of a total taking M the Pr,,per.v -he _r,, .ds s1, al! nr ,pt:i
<br />Instrument, wheifcr c,r t then due. with any excess paid t., 13f. iC
<br />t _ ' C Sr 11 f t
<br />I
<br />nless 130r I,wer an(" Lender therwise aprer vt ;tin
<br />u rc c
<br />tbt amc,uni nF the r .:e%`t rn, iler
<br />i
<br />_ ^gar' i ante lei• r..
<br />pa.�7 n, K wr,
<br />and
<br />R
<br />
|