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<br />Lender pays Borrower interest on the Funds and applicable law permits Lender make such a charge. Borrower and
<br />85-- 00147?
<br />z Lender may agree in wasting that interest shall be paid on the Funds. Unless an to 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 a
<br />this Security Instrument. re pledged as additional security for the sums secured by
<br />the due dates of the ese oweit ro Funds
<br />re exceed the amount required o pay the escrow items when due
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on of Funds payable prior e, to
<br />amount ne the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay o L nderlany
<br />amount necessary to make up the deficiency in one or more Y Payments of Funds. If the
<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 Lender.
<br />than immediately prior to the sale of the Property or its acquisition by Lender
<br />application as a credit against the sums secured by this Security Instrument. any Funds held by Lender ap[he time of
<br />t 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I a n d 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 amoun s
<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
<br />prevent the enforcement of the lien or forfeiture of an y,
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any to
<br />y part of the Property; or Ic) secures from the holder of the lien an of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may
<br />nonce 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. Y give Borrower a
<br />5• Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by tire, hazards included within the term..
<br />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 rom tl
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carner and Lender. Lender may make proof of loss if not made promptly by Borrower. P P y give to Lender
<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 t
<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 Borrower. the
<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 r
<br />the Property or to pay sums secured by this Secunty instrument, whether or not then due. The 30 -day period will s
<br />when the notice is given. P restore
<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 month)
<br />Payments referred to in paragraphs 1 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 the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6• Preservation and :Maintenance of Pro
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security instrument is can a leasehold.
<br />Perty; Leaseholds. Borrower shall not destroy, damage or substantially
<br />Borrower shall comply 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 wasting.
<br />7. Protection tit Lender's Rights in the Property; Mortgage insurance. if 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 />Lender's rights in the Property (such as a proceeding in bankruptcy, probate• for condemnation ur 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 pay appearing in court . paying reasonable attorneys f es and entering on the Property priori"
<br />tmakr repairs. iAlthough
<br />Lender may take action under this paragraph ', Lender does not have a re so
<br />Any amounts disbursed by Lender under tins paragraph 7 shall become additional debt of Borrower secured by tills
<br />Secunty Instrument. Unless Borrower and Lender agree to other terms of payment. these amounts shall bear Interest from
<br />the date of disbursement at the Note rate and shall be payable, with interest, upon
<br />requesting payment. notice from Lender to Bon'o«er
<br />If Lender required mortgage insurance as a condition of making the loan secured by tills Security instrument.
<br />Borrower shall pay the premiums required m maintain the insurance in effect until such time as the requirement for the
<br />L ginsurance terminates in accordance with Borrower's and Lender's wntten agreement or applicable law.
<br />. Inspection, Lender or its agent may make reasonable enines upon and Inspections of the Property, Lender
<br />shall give Borrower nonce at the time of or prior to an
<br />9. Condemnation. 'Pile proceeds of inspection specifying reasonable cause for the inspection.
<br />any award or claim for damages, direct or Consequential, in connection with
<br />any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are her'chv
<br />assigned and shall he paid to Lender. n
<br />In the event of a iota) taking of the Property, the proceeds shall tx applied to the sums secured h
<br />Instrument, whether or not then due, with any excess paid to Borrower In the event of a
<br />artless Iorrower and I.cndrr otherwise ague ui wrnmg, the sums secured by Y tills Sccunh
<br />rile arnourit of the pnneec's irtulnplied by the following fraction (a) rite total amount .,f ; hirr `uirltisa�rieurcd��rnmrd�ueli
<br />this Secunty Irislrurnutf .hall he redniCd hi
<br />before she r ikink.:irvidad iy ih) the fair market value of the I'rolaerty immeduuelc i,rlurr rile raking Inv 1-
<br />p�aid ro IhirrnWrr
<br />il:oirc• shall !,c. _�
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