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Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower
<br />Lender may agree in writing that interest shall he paid on the Funds. Unless an agreement is made or applicable able l w
<br />requires interest to be paid. Lender shall not be required to PP d
<br />Shall give to Borrower, without charge, an annual accounting of he Funds showing credits and debits ottah Funds. Lender
<br />Purpose for which each debit to the Funds was made. The Funds arc pledged as additional security for the sums secured the
<br />by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, payable prior e,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthI the excess shall be,
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due, y payments of Funds. If the
<br />amount necessary to makeup the deficiency in one or more mower shall pay to Lender any
<br />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 t
<br />receipts evidencing the payments. P Y o Lender
<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 see forth above within IO days
<br />of the giving of notice. Y
<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 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 promp
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. t notice to the insurance
<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 riot economically feasible or Lender's securty would he lessened, the insurance proceeds shall he
<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 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 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 I and 2 or change the amount of the payments. If
<br />under paragraph i9 the Property is acquired by Lender, Borrower's right to anti 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 />h. 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 instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title t
<br />fee title shall not merge unless Lender agrees to the merger in writing. o the Property, the leasehold and
<br />7. Protection of Lender's Rights in the Property; Mortgage insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Secunty 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 glad Lender's rights
<br />in the Property. I..ender's actions niay include paying any sums secured by a lien which has priority over this Security
<br />instrument. appearirig in court, p;iying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take rctc.�rn Wider this paragraph 7, Lender does not have to (lie so.
<br />Any anxOunts disbursed by Lender under this paragraph 7 shall become additional .icht tit i3urrowc�r' secured by this
<br />Security of dish eiat. t'nless Borrower grid [,ender agree to other terms of avment, t.,ese amounts,hall bear interest frorn
<br />the date t f disbursement at the Note rate and shall be payable, with int'crest, upon "tIce frt>m Lender to Horro%%er
<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 terminate% in accordance with Borrower's and Lender's written agreement or applicable law.
<br />R. Inspection. Lender t)r its J ent may make reasonable entries upon and inspections owl° the Property, [_.r..ndcr
<br />shall give B rr1)`v r ilea €ce at the time of car prior to an inspection specifying reasonable cause fair the ire he Peon.
<br />9. C:'tinderranatiarn. I he I,r< eeris lst any award or claim for damages. direct or
<br />consequential, in connection Gvith
<br />any condcmnaritan or ether taking of any part ref the Property, or for cimveyanee in lieu of medal, iflat itrri, ;err hear,. °h%
<br />assigned and,hall pai41 to) l..encler
<br />In the
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