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Lender pays Borrower interest on the Funds and ooioO84 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 />r shall give interest to
<br />Borrower, paid
<br />without charge, an antnualraccounl accounting pay f t Borrower F nds showing or earnings
<br />and debits to the Funds and the
<br />1 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 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 pnonty over this Secunty, Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided m 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 />E receipts evidencing the payments.
<br />{{ Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />I agrees in writing to the payment of the obligation secured by the bruin' a manner accepta
<br />faith the lien by. or defends against enforcement of the h ble to Lender; (b) contests in good
<br />en .n. legal proceedings which in the Lender's opinion operate to
<br />Prevent the enforcement of the hen or forfeiture of any part of the Property; or Ic) 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 hen 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 (or 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 />h unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and %L.ill Include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promntly 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 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 be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Bortower. 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-day period will begin
<br />when the notice is given.
<br />Unless Lenderand Borrower otherwise agree in writing, any application of prtxcrds to principal shall no. extend or
<br />postpone the duedate of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Properly 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 Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold.
<br />Borrower shall comply with the provisions ol'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 fads 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 Proper:_ (such as a proceeding to bankruptcy, probate, for condemnation or to enforce laws ar
<br />regulations), then Lender may du and pay for whatever is necessary m proteet the value of the Property and Lender's rights
<br />in the Property. Lender's actions may Include paying any scans secured by a lien which has pnont)' os er this 5rcur.ts
<br />Instrument, appearing m court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take xenon under this paragraph 7. Lender does not have to do sit
<br />Any amounts disbursed by Lender under this paragraph 7 shall become addmunal debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other Icons of pay merit• thew anmunis %ban bear unercq'tnvri
<br />the date of disbursement at the Note rate and shall be payable, with interest, upon nonce Imm l ender to Borrower
<br />requesting payment.
<br />If Lender required mortgage insurance as a condition tit making the loan secured by Ibis Svru my Instrument,
<br />Borrower shall pay the premiums required to mountain the !Insurance in effect until such time as the requirement for the
<br />Insurance tentiniates In accordance with Borrower's and Lenders written agreement or applicable law.
<br />8. Inspection. Lcndcr or its agent may make reasonable eruncs upon and Inspections of tile Properly Lender
<br />shall give Borrower notice at the lime ofor poor loan mslxcuon specdymg reasonable cause for the mslxCnon.
<br />9, Condemnation. The proceeds ol'any award or elann for damages. direct or conscqucnual, m connection with
<br />any condemnation or other taking of any part of the Prorerty, or for corn eyance in lieu of condenmanon, arc hro•hs
<br />usvgned and shall be paid to Lender
<br />In the event of a lutat taking of the Propermv, the pnxeeds shall he ,q.pl!ed In the sums secured by 11, %Sat unfw
<br />Inyinmicrit, whether or not then duc, with any excess paid W Borrower hi the rscol of .i pnru:J Liking pi the Ps, um
<br />unless Boinrwer and I. ender otherwise ugren m -Hong, the sums seaucd by this 5ecurns hniriimrm sn, 1; be !educc,i !�
<br />the amount a( the pna'ca's multi Phed by the I: dlowmg fla[IIOn !.i! file !nLd amount of !hr sums se.un•J ;nu ned!a!rlw
<br /><(nre Ihr raking, all viJ!d by !hf the lint ruai kCt snlur. ul ibe Pnlpern nnmrdruelw haMrc the Iak!og \nN h,i aro r shell !••
<br />pnul f.., Burr „w er
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