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85- 003348
<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
<br />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 interest
<br />any 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 are
<br />this Security Instrument. 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 to
<br />the due data of the escrow items, shall exceed the amount
<br />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
<br />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
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<br />secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Propert
<br />y 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
<br />Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />y
<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
<br />'Vote,
<br />under the Note; second, to prepayment charges due under the
<br />third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charges; Liens.
<br />Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument,
<br />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
<br />Pay them on time directly to the
<br />shall
<br />person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these
<br />receipts evidencing the payments.
<br />payments directly, Borrower shall promptly furnish to 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
<br />a manner acceptable to Lender; (b) contests in goad
<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
<br />of any pan of the Property; or ic) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. if Lender determines
<br />the Property is subject to
<br />that any pan of
<br />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
<br />of the giving of notice. one or more of the actions set forth above within 10 days
<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
<br />coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the
<br />amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shalt be chosen by Borrower
<br />unreasonably withheld. subject to Lender's approval which shall not be
<br />Ali 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
<br />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 />carrier and Lender. Lender may make proof of loss if
<br />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
<br />economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is riot economically feasible or Lender's security would be lessened, the insurance
<br />applied to the scans secured by
<br />'
<br />proceeds shall be
<br />this Security Instrument, whether or not theft due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days
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<br />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
<br />r to pay sums
<br />the Property oice
<br />secured by this Security or restore
<br />notice is given.
<br />when the n instrument, whether or nor then duc. The 30 -day period will begin
<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
<br />paragraphs 1 and - or :hinge the amount of the payments. if
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to anv insurance policies and
<br />from damage to the Property
<br />proceeds resulting
<br />prior to the acquisition shall pass to Lender to the exten
<br />Instrument immediately prior to the acquisition. t of the sums secured by this Security
<br />b. Preservation and Maintenance of Property; Leaseholds Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit
<br />waste. If this Security Instrument is on a leasehold.
<br />B grower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold
<br />fee title shall not merge unless Lender
<br />agrees to the merger in writing. and
<br />7• Protection of Leader's Rights in the Property;
<br />Mortgage 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
<br />Leader's rights in the Property (such
<br />affect
<br />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
<br />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 lien which has prionty over this Security
<br />Instrument, appearing in court, paying reasonable
<br />attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under this paragraph 7, Lender does not have to do so.
<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
<br />of payment, the a amounts shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable, with interest,
<br />requesting Payment. upon notice from Lender to Borrower
<br />If Lender required mortgage insurance as a condition of making Inc loan secured by this Security Instrument,
<br />Borrower shall pay the premiums required to maintain the insurance
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<br />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 />S. Inspection.
<br />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
<br />specifying reasonable cause for the inspection.
<br />9. Condernsation. The proceeds of any award or claim for damages,
<br />direct or consequential, in connection with
<br />any condemnation or ether taking of any part of the Property, or for
<br />conveyance in lieu of condemnation, are hereby
<br />,Migned and shall be Patti to Lender_
<br />In the event &,t 14>ta1 taking r,f ihe Property, file pr K-ceds shall be applied to fire suits secured by ibis tie unt.
<br />Itisvurtrnt whcrhr,r or ri„t then due, with any excess to. (Iorrowrr
<br />p;eul Ir, the rvenr of a parual takmk of the Psectot�.
<br />File, A I3 i care araif l erode :thcrwtse egret vi writing, the sums set :u: ecl',v this Sccuntp Instrumcin � >ha!j he rr,1u� c,l ht
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