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85-78 000556
<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 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 arc pledged as additio,ial security 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. 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 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 1 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 manner, 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 in 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 />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 terra "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 lie chosen by Borrower subject to Lender's approval which shail not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall he 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 hall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give 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 tc 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 suers secured by this Security instrument, whether or not then duc. The 30 -dav period will begin
<br />when the notice is given.
<br />Unless Fender and Borrower otherwise agree in writing, any application of proceeds to principal shall :tot extend or
<br />postpone the due date of the monthly payments referred to in paragraphs i and ' or change the amount of the payments If
<br />under 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 substannally
<br />change the Property, allow the Property to deteriorate or commit waste If this Security Instrument is tin a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acgtnres fee title t,t the Proprrty, the leasehold arr.l
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's !Fights in the Property; Mortgage Insurance. If Borrower laik to I•ciform ;hc
<br />covenants and agreements contained in this Security instrument, or there is a legal P,rorrcdnt_ that ntati siwnincant;y alts.:
<br />Lender's nghrs in the Property (such as a proceeding in bankruptcy, probate. fof omdeninarion ,ir: ,o rnfoice Ltws or
<br />regulations), then lender may do and pav for whatever is necessary io rrotect the s aLrr c; itr (' -rt-rty .ind i ondcr's
<br />in the Property I erider's actions may include paying any sums securest by a Len which has rnonty , per ttms
<br />Instrument. ;rppeartng In court, paying reasonable attorneys' fees and entering -ii ii the Prc:periy to make It.-Pal's : \!thous h
<br />Lender ma% take action under this paragraph 7. Lender does not have to do so.
<br />Any amounts dishurscd by Lender under this paragraph 7 shall become additional debt of Borrower secured by !hit
<br />Security l:asrrument Unlesv Borrower and Lender agree to other terms of payment, these amounts shall heat uu re,t fr um
<br />the (late of disbursement at the Note rate and shall he payable, with uuerest, upon notice from 1 ender to
<br />requesting payment.
<br />If Lender required mortgage insurance as a condition of making the roan scoured by this Security Insirurtarmt.
<br />Borrower ;hall pry the premiums required to maintain the insurance in effect until soc) time as the regcuremeol hit the
<br />insurance icrnnnaies in acxeardance with Borrower's and Lender's written agreenienr rr ar ncw�ahle lays.
<br />A. Inspection. Lender (ir its argent may make reasonable entries upon and rasp s.tons „1 the 1'ro1)ett,: L.cmic,
<br />shall give Borrower notice at the tune o,'or prior to an inspection specifying reasonable cause loi the inspection.
<br />9. Condemnation. The proceeds of any award or claitn for dvnares, direct or onscquennal, tit corutectana with
<br />any condemnation or (alter taking of any part of the Property, or for convevance tit lien of condcnrnution, air
<br />assigned and shall br paid tt) I render,
<br />in the event of it total taking of the Proprrty, the proceeds shall Vr- :irplird tit the suns; s,�colcki I,`, this �ecuiu,
<br />Instrument. .whether r,r pert then due, with any excess raid to llorrowcr i i the event „f ,: ram,d taking „1 +h,• I'rol"O t.
<br />unleys Dorrnwrr:tr0 f.�,n ]cr, =thvi vise agree in wntrnf; the sums secured by iii. `••curl!•, In,ui,mcni Juill N,
<br />it.h;cr,1
<br />ttte arrimmi (,f " u' ntultirhed by the cnlloyving frnctwn ia) the r,>tal "I'll ,!r.r ,t :he •gums scuresl�zPauiac�lt,nr.,
<br />Pp',src the �,� :n., - t ; f,,9 !,v (hl She: lair m milet vslur r,t Ill(.I'r,t,eYrt„ nr r. , 1,.,1•,,te ,I;: ,.,'huut \n !_rl,ur� r ..ha;l '
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