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<br />85- 003385
<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 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 beto
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall ,
<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 tinder 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' 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 ' 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 />$. 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 earner 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 prompt notice 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 w•nting, insurance proceeds -,hail 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 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 abapdcns the P mveriv. or dues not answer within =0 days a notice from Lender that the insurance earner has
<br />offered to settle a claim, then 1_ender m av coiiect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay 'ums secured by rills Secunty Instrument, whether or not then due. The +0 -,Say period wits begin
<br />when the notice is riven
<br />Unless Lender and Borrower utherwtsr agree in writing, any application of proceeds to principal ,hall 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 N 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 sum secured by this Security
<br />Instrument immediately prior w the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. B ,)rrower shall not destroy, damage or substantialiv
<br />change the Property, allow the Property to deteriorate or commit waste. If this Secunty Instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to
<br />fee title shail not merge uttless Lender agrees to the merger in writing. 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 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 paying any sums secured by a lien which has priority over this Secur;t%
<br />Instrument• appearing nt court, paying reasonable attorneys' fees and enten' 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 !s Unless disbursed this r shall on'tn oSts untIns-, umen Borrower and Lender to other tents f pavrneti•se amounts shall bear !rom
<br />the date of disburumnt at the Note rate and shall be payable, with interest. upon notice from Lender to Bor(,sser
<br />requesting payment
<br />If Lender required mortgage insurance as a condition of making Ine roan secured by this Security Instrument,
<br />&-)rrower -,hail pay the premiums required to maintain the insurance in effect until such time as the requirement for the
<br />insurance term =hates in accordance with Borrower's and Lender's written agreement or applicable law•.
<br />S. inspection. Lender or its agent may make reasirnabie entries upon and inspections of the Property Lender
<br />shall give B 3rr�r)wcr n,uice at the time of or prior io an inspection specrfying reasonable cause for the inspection
<br />9- t-'rindemtnatiOn. The proceeds of any award or claim for damages• dtrect or consequential, in connection tyith
<br />any c:cst and h as ra r ,ether taking : >f any pan of the Property, or for conveyance in lieu of eandenntation. are fiere(,v
<br />assigned and *till � , ii:iF tri 1 ender
<br />In the tl r ., -ta) i zking :,f the Property. the prr:cceds shill he applied t(' the Burns secured by this set'un:
<br />r a -iwr en due 4nh any rxcess tad t;:, IlErtower !n tic e4
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