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85, 003766
<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 requited to pay Borrower any interest or timings 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 to
<br />the cite 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 optical, 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 maize up the 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 i teiy prior to the sale of the Property or its amuisition 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 Payiarents Una applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges die under the ]vote: 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 />i. 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 evil= -ncirg 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 lieu by. or defends against enforcement of the lien in, legal proceedings which in the Lenders opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Properly: or t_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 grower a
<br />notice ideritifying 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 />' 5_ Hazard Insurance_ Borrower shall keep the improvements new existing or hereafter erected on the Property
<br />insured against .oss by re, 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 arrer providing the insurance shall be chosen by &grower -subject to Lender's approval which shall not be
<br />unreasonably withhe:d-
<br />All insurance policies and renewals shall be acceptable *o Lender and shall include a standard mortgage clause.
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<br />Lender shall have the right Io 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 nonce 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 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 secunnI is not lessened. If the
<br />restoration or repair is not economicalh feasible or Lender's security would be 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 _10 days a notice from Lender that the insurance c arrtr. 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 Propene or to pay sums secured by ihrs Security instrument, whether or not then due. The 30-day period will bcgm
<br />when the notice IS gayer.
<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 1 and 2 or chance the amount ;?f the payments. If
<br />under paragraph 19 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 t,o the extent of the sums secured t,% this Security
<br />Instrument immediately prior to the acquisition.
<br />6 and Maintenance of Property; Leaseholdsi. Borrower shalt 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 />Ek- irrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title Mull not merge unless Lender agrees to the merger in writing.
<br />7. Preftotion of Leader's Rights is the Property; Mortgage Insurance. If Borrower fails to perform the
<br />coverants and agreements contained in this Security Instnrnrent, or there is a legal procerding that may significantly affect
<br />Laider*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 pnortty over this Security
<br />Instrumen=t, appearing in court. paying reasonable attorneys' fees and entenng on the Property to make rep;srrs. Although
<br />Lender may take action under this paragraph. Lender does not have to do so.
<br />Ariy amount, disbursed by Lender under this paragraph' shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, ti ese amounts shall bear interest from
<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 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 terminates it, accordance with Borrower's and Lender's written agreement or applicable law.
<br />L & Inspection. Lender or its agent may make reasonable entries upon and inspections of the Propery. Lender
<br />shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br />9. Condemnation. The proceeds of any award or claim for damages. director consequential, in connection wish
<br />any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby"
<br />assigned and shall be paid to Lender.
<br />In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security
<br />Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property.
<br />unless Borrower and Lender otherwise agree in writing. the sums secured by this Secant} instrument hail +e reduced b>
<br />the amount of the procee& multiplied by the following fractic- tai the total amount of the sums secured ,mmediatei%
<br />before the *akin¢. dnided by (bi the fair market value of the Property immediately before the takine..4nti !,a:ance shall he
<br />' paid to Borrower
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