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85-- 000623
<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 he 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 />F(" 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 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 if, 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 attnbutable 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 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 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 promptiy zi%e to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the instrance
<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 be 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 he
<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 earner 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 hegln
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, arty application tit p ro ceeds to principai shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and Z' or change the amount Of the payments P
<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 (,f the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not drstro} , damage or subsiannaiiy
<br />change the Property, allow the Property to deteriorate or commit waste. If thy, Security Instrument rs on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee tale!,) the 11forerty, ;he leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />?. Protection of Lender's Rights in the Property; Mortgage Insurance. if I3orrovver iaals to pertorn1 the
<br />covenants and agreements contained in this Security instrument. or there %,,.I Iegai p rocceding that tn:ay signific:anily affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate. for condemnation t r to entorce taw% or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender', npthls
<br />m the Property. Lender's actions may include paying anv balms secured by a lien which has pnority ,%er tilts Se,currn
<br />instrument, appearing in court, paving reasonable attorneys' fees and entering on the Properiv to make repair% AIlhouaia
<br />Lender may take action under ihls paragraph ?. Lender does not have to do so.
<br />,Any amounts disbursed by Lender under this paragraph ' shall hecorne additional dcht opt Horrtwyer 0ccuied he Alts
<br />curlty Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts 01;111 hear interest (min
<br />the date of tdishursemeni at the Note rate and shall he payable, with interest, upon notice trom Isendet to Itotr,tt��t
<br />requesting payment
<br />If Lender required mortgage insurance as a condition of making the loan 0ecured by this Security Instrument,
<br />lorrower w,hall pay the premntnns required to nialtit.nn the insurance In elfect until such little as the requirement for the
<br />insurance terminates In accordance with Borrower',, and Lender'~ wtntten agreement or ,ipplic: able Law .
<br />g, inspection, Lender or its agent may make reasonable entries upon and Inspections of the Propene Lender
<br />hail give Borrower notice at the tine of or prior roan inspection apecrfving reasonable cause for the inspection
<br />9. Condemnation. i'he proceeds of any inward or clantl lilt datnagcs, i irtct or consequential, iii coniieclion will
<br />any conileninatlon or niher, taking of any, part oI the Protw•rty. or for convevancr m iteu „t condennnatlon, .tie herein
<br />assigned and Oiall he pauf to Lender
<br />in the event r,( ,I total taking lit the Property, the proceeds 0111fl be ,apl�led Io the 0un1•. 'ecuteri t,v IhI. St -t unly
<br />in'truniew, Whether r-I not then .due, with any excess paid to Hoilowet In the event of a pmttal IaAntv t the I'ropert%.
<br />inle%N ftorrowe^r and I.cudet -0I rwase Agree rn willing, the 0Iltm "ecured thv Ibis `pro :unla Instnttnvut .hail 1'r u- diked l,a
<br />911 mt-wrr of the mulitplirrd hV the Inllowiritt traction ?.It rile 1-1.11 imomit ,I the 0Ijitw cnir,! ,imnt•tlmta ',
<br />,ee'. tt t' r>,e r,a p,itl �, -t r.+alerl h, t,t ihr Ialr rnvr Ail. ;lima i�t rho_ Prat,rrt� nnvne�ilnit•lo: hrt,nr the �.it,nti;, Ln '•a i,ui� r ,!tar'
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