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85- 004217
<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 to
<br />the due 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 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 />f anv 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 sate 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 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, fires 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_, or if not paid in that manner. Borrower shall
<br />pay them on time directly M the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to he 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; ib) 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 satisfac :ory 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 giving 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 ;or which Lender
<br />requires insurance. This insurance shall be maintained in the amounts :ind for the periods that L:;nder requires. The
<br />Insurance carrier providing the :nsurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonabiv withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard morteaec clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires. Borrower shall p rornpriv give [v Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrow shall give prompt nonce u> the insurance
<br />carrier and Lender Lender may make proof of loss if not made promptly by B<!rower.
<br />Unless Lender and Borrower otherwise agree in writing, Insurance proceeds shali he ;tnni}ed it), csloranon or repair
<br />of the Property damaged, if the restoration or repair is economically feasihie ind Lender , security ;, n , lessened if the
<br />restoration :,r repair is not ,crmomically feasible or Lender's security wcruid he k. crrC ; he ins r u:a• ; r; . eeds shall be
<br />applied to the urns secured by this Security Instrument, whether or nor ;hen duc, with ;utt <xcess pauj to Borrower If
<br />Borrower aband „m the Property, (Jr does not answer within 30 days a noucc from I erdcr liar the msur-rtes --arner has
<br />offered it, settle a ;;aim, then Lender may collect the insurance proceeds. Lender mac use ! hit ptnreeds to repair or restore
<br />the Property or u, pav sums secured by this Security Instrument, whether -:+r not trier: due i he n_d n perrai viii begin
<br />when the noticeu.tiven. r
<br />Unless I. enuer and Borrower otherwise agree Ili writing, any application of prn,c, ^_ds n, principal .hail nor extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and _ or.hanee the amount of the payments if
<br />k under paragraph is the Property is acquired by Lender, Borrower's right ro any insuran•ee policies and pro ecds resti!ting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent i,f the sums secured by !fits Securtte
<br />Instrument immediately prior to the acquisition.
<br />ti. 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 />&,rrnwer shall c;,mph with the provisions of the lease, and if Borrower acquires fee title to rtre Property. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />E 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 proccedmg that mac significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate. for condemnation or to enforce taus ,,r
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rit.hts
<br />in the Property. Lender's actions may include paying any sums secured by a hen which has ptionly ever this Securlrc
<br />Instrument, aprrcanng m court, paying reasonable attorneys' fees and entering cut the Property tee milks rer,a ;rs. :11th :,itch
<br />Lender may rake action under thi, paragraph 7, Lender does not have to do so
<br />Any amounts dnshursed by Lender under this paragraph 7 shall become addrtuulal ,tent ,,f ltorn,vvrr s cured
<br />Security Instrument, Unless Borrower and Lender agree to other terms of paymenr. these aniounrs shall 1) Interest (1,111
<br />the date of disbursement at the Note rate and shall be payable, with intcrc,t, upon notice from Lender u, H,,rr:,wct
<br />requesting payment.
<br />If Lender required mortgage insurance as a condition of making the loan secured b% this Security Instrument.
<br />Borrower shall pay rile prernturns required to maintain the insurance m effect until such time as the equoement f,.• the
<br />msurance terminates m accordance with Borrower's and Lender's written agreement or applicable law
<br />L A. Inspection. Lender or its agent may make reasonable entries upon and inspccuoris of the flwper ;ti Lrn,Ir;
<br />shall give Bort„wer ru,ince at the time )f,,r prior to an inspection specifying reasonable cause for the inspecta,m
<br />9, Condemnation. The pressed, otany award or claim for damages, direct or consequential, ,n ri,nnc.:uem teat,
<br />any condentrtatuin or other taking ol• any part of the Property, or fur corrvevance stn loco of ;;:netrmnatt ,n, sir !ic•i ;rr.•,
<br />assigned and shall be paid w Lender.
<br />In the e"t tit M a e; ral laking Uf the Property, the nrocreds shall he the c r•. .r r, ! !,< i, s- t :., ;�
<br />it -, I t urtirn r w ho. i I e, r T t•i Iitrn elite with ally r<crss paid to Borrower In the event ,I i t ,.,; ;• , , : I
<br />unlr"s f) a .wet iu i r endear �tiir. wisc agrre! ui %& r10118. the ,urns securest by rho tieciinn I. ; :tiro
<br />he ,Hirt, in f 'h ..,', ntu;rt,hrd h ,.
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