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I
<br />85- .001495
<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 Unles
<br />requires interest to paid. Lender shall not required s an agreement is made or applicable law
<br />ay Borrower any interest or earnings on the Funds. Lender
<br />purpose for r
<br />shat! give Borrowerer, , without charge, an annual accounting p . g of the Funds showing credits and debits to the Funds and the
<br />this Security instrument. which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured by
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior o
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall bte,
<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 I 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 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 toss by tire, 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
<br />insurance cam and for the periods that Lender requires. The
<br />unreasonably withheld. er providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<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 />earner and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in wnting, insurance proceeds shall be applied to restoration or repair
<br />re the Property damaged, if the restoration si repair is economically feasible and Lender's security is not lessened. If the
<br />restoration he 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. 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 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 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 1 and 2 or change the amount of the payments.
<br />Instrument immediately prior to the acquisition ments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrows right to any insurance policies and proceeds
<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 />.
<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 I
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee nstrument is on a leasehold.
<br />title to the Property, the leasehold and
<br />fee title shait not merge unless Lender agrees to the merger in writing, 7. Protection of Lender's Rights in the Property; "vtortgage Insurance. If Borrower fails 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 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 paving any sums secured by a lien which has priorit over this Security
<br />Instrument, appeanng in court, paying reasonable attorneys' fees and entering on the Property to make
<br />Lender may take action under this paragraph 7. Lender does not have to do sr, repairs. Although
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. unless Borrower and Lender agree to other terms of pay merit. these amounts shall bear Interest from
<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 loan secured by this Security Instrument,
<br />Borrower shall pay the premiums required to maintain the insurance in effect until such time as the requirement for the
<br />insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law.
<br />g. Inspection, Lender or its agent may make reasonable entries upon and inspections of the Property. Lender
<br />shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the Inspection.
<br />9. Condemnation. The proceeds of any award or claim for damages• direct or consequential, in connrc bolt with
<br />any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby
<br />assigned and shall he paid to i.cnderr
<br />In e the evens of a not taking of the Property, the procceds %hail he applied to the sums secured t,v this sev riry
<br />Instrument, whether or tat thin dui, with any excess paid to Borrower In the event of a partial aihu,Q of the i'rnperiv,
<br />the as Borrower and lender otherwise agree in wnting, the suits secured by this Security Instrument shall he reduced hti
<br />the amount < +f the prtncec'% muftiphed by the following fraction: (it) the total amount .if the sums secured tit mcdc I h
<br />before the t tkinit d1vuted by rh) the t:air market value of the Praperiv untnediate)y hefnre the iekmu cu halanrc ,talc :,.,
<br />pattl to Borrower
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