S6 • 100014
<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, Lenderl 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 to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrument.
<br />If the amount of 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 Bixrower'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 suficient 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 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. Applicauoit o(Paynteau. ' 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, fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2. or if not paid in that scanner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all 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: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender. (b) contests. 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 lien which may attain priority over this Security Instrument. Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against toss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall he maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subtect to Lender's 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 hold the policies and renewals. if Lender requires. Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss. Borrower shall p%e prompt notice to the insurance
<br />carrier 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 he applied to restoration 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 10 -day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal s} all not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and Z or chance the amount of the payments. If
<br />unaer paragraph 19 the Property is acquired by Lender. Borrower's right to any 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 />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Properly, 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 title 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 io enforce laws or
<br />regulations). then Lender may do and pay for whatever is necessary to protect the Value of the Property and Lender'; rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority oler this Securit%
<br />Instrument, appearing in court. paying reasonable attorneys' fees and entering on the Property To make repairs. Although
<br />Lender may take action under this paragraph'. Lender does not have to do so
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured b% this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these 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 ioan secured by this Security Instrument.
<br />Borrower shall pay the premiums, required to maintain the insurance in effect until such time as the requirement for the
<br />insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law.
<br />S. lttspectian. Lender or its agent may make reasonable entries upon and inspections of the Property LcndrT
<br />shall give Borrower notice at the lime of or prior to an inspection specifying reasonable cause for the inspection
<br />9. Condemnation. The proceeds oi'any award or claim for damages, director consequential, in connection with
<br />any condemnation or other taking of any pan of the Property. or for conveyance in lieu of condemnation, are hereb,
<br />assigned and shall be paid to Lender.
<br />In the event of :i total taking of the Ptoperty, the proceeds %hail he applied to :he tom, :e;urrti r,% chi% Secant,
<br />Insirument, whether or not then due. with any excess paid to Brirrowcr in the event ,t s i:.rt:.ii ikintt ,,I the Pmrt:r,.
<br />unless lJot %c-it and lender otherwise agree ui writing. the •,umt, se;.ured ti% !hi% 1e,uw% ln,tr;itirnt tltaii i�c tesi,;,vd ',,
<br />the Amount cif the pr(a:ree,- multiplied by the following fractvui jai the vial .im:uini •t .iii din, •.eciarrd .rnn:resiuteh
<br />!s tr,re. the faking'. ,:r hied !w 01 i thu till market value m 'hr Prat�etr, .m• -.f . , ., !!° P i!:r .,K �r, +,+„ al.;n.:.F.t!! ',
<br />paid I" H ..f!;•.6rt
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