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<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such ch00 53� 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 dehit 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 t he 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 riot 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 pan 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 he 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 nonce 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 secunty 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
<br />the Property or to pay sums secured by this Security Instrument, whethe: or not then due. The 30 -day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in wnting, any application of proceeds to principal shall riot 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 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 subsrantiaily
<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 Borrower acquires fee title ro 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 falls to perform the
<br />covenants and agreements contained in this Security Instrument, or there Is a legal proceeding that may significantly affecr
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate• for condemnation or to enforce laws cr
<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 sums secured by a hen which has pnonty o%er this Secur;ts
<br />instrument, appearing In court• paying reasonable attorneys' fees and entering on the Property to make repairs. Althou4n
<br />Lender may take action under this paragraph 7. Lender does riot have to do so
<br />Any arnnvnts dishursrd by Lender under this paragraph 7 shall become additional debt cif Borrower secured by this
<br />Security 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 he payable. with interest, upon notice from Lender to Borrower
<br />requesting payment.
<br />If' Lender required mortgage Insurance as a condition of making ine loan secured by this Security Instrument.
<br />W)rrower shall pay the premiums required to inauitain the Insurance it, effect until such time as the requirement for the
<br />Insurance terminates In accordance with Borrower's and Lender's written agreement or, law.
<br />A. Inspection. Lender or Its agent may make reasonable entries upon and uispecuun1s 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 anv award or claun for darnages. direct or consequential, In connection wtth
<br />any condemnation or other faking of any part of the Property, or for conveyance in lieu of rundemn:ttron, are herchv
<br />assigned and shall be paid to Lender
<br />in the event of n total taking of the Property, the proceeds shall he ;ipplicd to the sums secured by this Sctiurlt%
<br />in'lrument. Ahe!fiet or not ;hen due, with unv excess paid to Borrower in (tie event 11 1 partial lakinp, ref the 1'mscrn.
<br />urdets Horrower and I curler 'vlterwwe .18rer in writing, [lie sums secured by I, Is tiecunr• lnstrumew shall he redut d hs
<br />!he art aunt ,f !lie ;,r� >�eri's Il ulllpilcol by file hollowing fraction «ai Ihr, trilal altiount i�l ;he sir is •ccurril limo :rd;alei\
<br />efore floc !aka ,Iris it Ir4rd� 01i !tie lair niirket value. <,I the I'roprrtss nrrnrdlatelv I,rl� ire the aklne Inv i• :Ilan�r shill
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