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<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 pav 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 />t—^ purpose forwhich each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured by
<br />I 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 die 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 pr.ority over this Security instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the iien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the Len 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 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 acrd 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 insurao:t: ;proceeds shall be
<br />applied to the sums secured by this Security Instrument. whether or not then due, with any excc�,s Maid ro 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 30 -dav period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree tit writing. any ,application of pricc_ds to principal shall not extend or
<br />postpone the due date oft he monthly payments referred to fn paragraphs I and 2 or change the amount of the pa) nttenis. If
<br />older 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 thee xtent oft he 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 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 Bot rower acquires fee title to the Property, the leasehold and
<br />fie title shall not merge unless Lender agrees to the merger in wrung
<br />7. Protection of Leader's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there via legal proceeding that ma) sigmticantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or u) enforce laws ,:,(
<br />regulations), then Lender may do and pay for whatever is necessary to proicet the value of the Property and Lender's i il:his
<br />in the Property. Lender's actions may include paying any sums lectired by a Gen which has priority ,suer this Security
<br />Instrument, appearing to court, paying rcasonable attorneys' fees and entering on the Property to tnakc repairs. Although
<br />Lender may take action under this paragraph 7. Lender does not have m do so
<br />Any amounts disbursed by Lender under this paragraph %hail hec,,mc additionai debt ul It„r rowel secured by 1!11,
<br />Security Instrument. Unless Borrower and Lender agree to other term, of paynicnl. these atnounis shall hear rtitcre.t oni
<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 titan secured by this Security Instrument,
<br />Dwrower shall pay the premiums required to maintain the insurance tit Ofert until such time as the requirement for life
<br />insurance terminates m accurciance with Borrower's and Lendcr's wrutest agreement of applicable law
<br />LLg. Inspection. Lender or its agent may make reasonable: envies upon and inspcenons of the Property Lendc:
<br />shall give Borrower notice at the time of or prior to an InSpCCUUn s),ecitymg re.rsonahle cause tier the inspection,
<br />9. Coadamnation. T"he proceeds of any award or claun tier damages, dIIcct or cunscquent [it l, of rortnectiIII with
<br />any condemnation or other taking of any part of the PtopCrty, Of flu conveyance in lieu of condcmnauon, ,tie heict,v
<br />assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall hr applied to the stints secured by this Nr,. unt
<br />Instrument, whether or nett then due, with any excess paid to Burrower In the t:vent of a parmal I.II,I!q ,'1 flit, 1'i:,i,cii,
<br />unless Borrower and Lender otherwisw agree in %ruing, the • IMIs scturcd by ibis Security Instrimirm ,hall 1w ;,*oa,;,7 •,
<br />the atnetunt ••1 ih. ;n, „,, l h•: ,F.." ri. .
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