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85 I
<br />Lender pays pa on ,he Funds and applicable law
<br />Lender may agree in writing that interest shall be paid on the FundsttUnl Lener ss antagreementc s maderor applicable law Borrower and
<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 add
<br />this Security Instrument. itional 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 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 a the Funds held by Lender is not in on eor 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 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges dire 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 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 set forth above within 10 days
<br />of the going 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 amount
<br />unreasonably withheld. s and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shalt be chosen by Borrower subject to Lender's approval which shall not be
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<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 ;o Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carnet 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 security would be lessened, the insurance proceeds shall he
<br />Borrower r la sans secured be this Security Instrument, whether or not then due. with any excess paid ;o Borrower. If
<br />offered e olio ^cam the Pr .pe ?,%. o does nor answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to sr' le a c zi, : he ri Lender rray collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />then the re or i; ay sums secured ny this Security Instrument, whether or not then due. The 30 -day period will begin
<br />when the no ice is ..;;
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due dare of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender. Borrower's right to am 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
<br />Instrument immediately prior to the acquisition. this Security
<br />6• Preservation and :Maintenance of Property; Leaseholds Borrower shall not destroy, damage or substantiail%
<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 acquits fee title to the Property. the leasehold and
<br />fee title steall rot 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 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 ,%er this Sec
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<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property ro 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 additio 'al debt of Borrower secured by this
<br />Security Instrument. unless Borrower and Lender agree to other terms of payment, these amounts shall bear intere,r requesting
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<br />the date of disbursement at the Note rate and shall be payable, with interest. upon notice from Lender to Borrower
<br />requesting payment.
<br />If Lender required mortgage insurance as a condition of making the loan secured b% this Security Instrument.
<br />Borrower shall pa; the premiums required to maintain the insurance in effect until such time as the requirement for the
<br />L insurance terminates m accordance with Borrower's and Lender's written agreement or applicable law
<br />R. Inspection. Lender or its agent may make reasonable entries upon and Inspections of the Property. I_endcr
<br />shalt give Borrower notice at the time of or pnor to an inspection specifying reasonable cause for the inspeciton.
<br />9. Condemnation. The proceeds afany award or claim for damages, direct or consequential, in connection utrh
<br />any condemnation or other taking of any part of the Property• or for conveyance in lieu ., }' condemna u,n, are herehc
<br />assigned and _ hall be paid, I rider
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<br />1n the r eni t i trtal taking of the Property, the proceeds %hail he applied to the sums sec:.ired hN iius tierunn
<br />I strung: i riot i i,r due, uu},
<br />tiny excess paid to &irrrow• =r In i e coat f a �,arsru Ito - °iti !,r Pmprr
<br />pie- lir,r u snc t r.ir: `i ..vise agree u, ur;nng, the %urns s,., tired h� i,,• tie;
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