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Lender pays Borrower interest on the Funds and applicable law permits Lender to makes suich 44 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 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 />:fan immediately prior to the sale of the Pr„ perty 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 _ 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 pnority 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 />5. 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
<br />unreasonably withheld. Lender's approval which shall not be
<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 shall promptl% 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 />3PPlied 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 %0 -dav period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />Postpone the due date of the monthly payments referred to in paragraphs I and 2 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 thr 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,
<br />Borrower shall com z!low the Property to deteriorate or commit waste. if tilts Security Instrument is on a leasehold,
<br />Ply 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 />%•
<br />Protection oP fender's Rights in the Property; Mortgage Insurance, !f Borrower falls to perform the
<br />covenants and agreements contained in this Security instrument, or there is a legal proceeding that may significantly affect
<br />Lc!r ;er's rights in the Property (such as a proceeding in bankruptcv, probate, for condemnation or to enforce laws or
<br />regulations). then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any surns secured by a lien which has pnonty user this Stcurtty
<br />Instrument, appearing in court, paving reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under this paragraph 7. Lender does riot have to do so
<br />Any arnour's disbursed by Lender under thus paragraph ' .hall hecorne additional dept of Borroacr secured by ibis
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall hear curedsr frrtn
<br />the date of disbursement at the Note rate and shall he payable. with fructesr, upon notice mo Tram Lender in Bra 'I'lo"
<br />t eyuesting payment.
<br />If Lender required mortgage insurance as a condition tit making the loan secured 1y this Security Instrument,
<br />Borrower shall pay the premiums required to maintain the insurance ,n effect until such time as the requirement t„r the
<br />insurance ternunates in accordance with Borrower's and Lender's wntten agreement or applicable lau
<br />R, Inspection. Lender or its agent tnay make reasonable entries upon and inspections of 'fie Property Lender
<br />shall give Brirrnwer notice at the time of or prior to an inspection specdving reasonable cause for the inspection,
<br />9, f'ondemnation, The proceeds of any award or claim for damages, direct or ronsecluential, :n connection will,
<br />any coodemnarion or other taking of any Part of the Property. or for conveyance 11, lieu „f .ondtnnnation, ,ire herehv
<br />.icsigned and shall he paid to Lender
<br />In !tie event of a total taking If the Prop"ty, the proceeds shall he :ti,plict, r,, the 0ums ucure,.l by ills Set:nnn
<br />fnsirnroeot. whether or not then due. with why excess Paid to Borrower In 'he :vent ,qf a i,a tail r »kinpt ,,1 the , set,t•ris.
<br />riles fiarrruwer and Lender roe -were: agree its writing, the sums xvurril 1, ;his Secuntp instri nicnl 01,111 he r tiuretl hr
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