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<br />03-- 002343
<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. 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 arc 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 t 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 to 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 />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 gavtng 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" .end any other hazards for which Lender
<br />requires insurance This insurance shall he 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 •hall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. if l.xnder requires. Borrower shall promptly live to Lender
<br />ail 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 writing, insurance proceeds shall he applied to restoration or repair
<br />of the Property damaged. if the restoration or repair is economically feasible and Lender's wcurtty 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 Borrower. If
<br />Borrower abandons the Property, or does not answer within '10 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 Lender and Borrower otherwise agree in writing, any application (if proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and M or change the amount of the payments. If
<br />under paragraph IQ the Property is acquired by Lender. Borrowers right !o any Insurance policies and proceeds resuiitns
<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 deterwrafe or :onlnllI waste. If this Security Instrument rs on :I ieasehold,
<br />Burrower 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 writing.
<br />7. Protection of Lender's Rights In the Property; Mortgage Insurance. if Borrower 'ails to perforin the
<br />covenants and agreements contained in this Security Instrument, of there v, a legal proceeding, that may significantly affec!
<br />I.,cndef s nit in the Property (snGh as a proceeding In hankrupicy, probate. !(,r condemnation • r- to crilorce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value „f the Propene and Lenders rights
<br />in the Properly. Lender's actions may include paying any surf» secured by a lien which has priority o, er this Securiti
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering can the Properly io make repairs : rhouah
<br />Lende€ may take action under this paragraph Lender does not have to do sum
<br />Any amounrs dishursed by Lender under this paragraph ' shall hca erne additional debt of liorro%%er scLur ed by :!,,is
<br />Security Instrument, U mess Borrower and lender agree tit other items of pay rn,'!I1, 0 !No trnoutlts ,hal! hear rilerest front
<br />the date of drshursetncnt at the Note rate and shall he parable, wtth interest, upon nonce ;'rorrl I.crnder t" Ilrrro%kv-
<br />requesting paynmcng
<br />If Lender required mortgage Insurance as a condition of making time wan secured by this Security lnstruinent,
<br />Mirrrrwer shifil par the premiums required h7 maratain the insurance in effect until such intle as the requu'ement for ti:e
<br />insurance tr•rrrtirtates m accordance with Borrower's arud Lender s written agrecmcm nor ap ph:able law
<br />M. litspectilon. Lender (it Its .agent stay make reasirnlatile entries upon and tnsliectums of the Property Lendei
<br />shall give Etorrowcr ncruce at Itic time of i,r prior Ica air msl ection sperifymg reasonable cause fix the inspection.
<br />9, f' n"llemostion, fire prmeeds 0 f ;atmy award of c:Iaim felt damages. direct or ronsequeniial, in :tinfieOwn u'tih
<br />any -ondettinatlon or ""her taking of any part of the Property. or for conveyance In heu of ,ondenlni.%n !n, .ire herrhv
<br />as Igned and shall fir paid to Lrntder
<br />In file event r,f a !r,ful t,,;„Ing of The Pr,iperrv. ahe ('rr�erds shall rt. nwplirrd It, ;tie eums ,r( :kllVd by Ibis securuc
<br />lrtsrri,rnent, whcthet . +r u„i the +r ,!uci, wniti any eXCCSS paged I.. Burrower !n the e° rw if a parnal Iaktnk ;,f the I'iolvrto
<br />st'el<"i<5 Fk,f -weir trn(.6 I , :v,lor thcrivisct igiv,? in wrrrng. the surn't ec7cttrrd f,v this histrnntent Ovid he ieitttcckl I .
<br />!tie .tmia,um If '°z. g.r +,t..mrt`s multiphrd by the GilJowrng if:a:,It-,rt silt ,he !Ot:ai ,totem, I the -,wnr �., .�ir(1 nn11wolaw!y
<br />f per fIje !,akin f t• ". ' hi rile lmr market ,Out• (,f the Atit hak:uit,
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