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Lender pays Borrower interest on the Fu ids 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 he 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 />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 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 />3, Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which mac attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall nap :hrsc obl'gadons in the manner provided in paragraph 2, or if not paid in that manner. Borrower shall
<br />pay them on time d!: golly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this ^aragraph If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts e%;denctog the payments.
<br />Borrower :ha„ promptly discharge any lien which has priority over this Security Instrument unless Borrower: fat
<br />agrees in writing :.:the ;, .meat of the obligation secured by the lien in a manner acceptable to Lender; fb) contests in
<br />good
<br />faith the lien by. ar def:,nds against enforcement of the lien in, legal proceedings which in the Lender's opinion
<br />operate to
<br />prevent the ent,rc: -.neat of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien
<br />an
<br />agreement saiisia ti r% :o Lender subordinating the lien to this Security instrument. If Lender determines that any pan of
<br />the Property is subsea to a lien which may attain priority over this Securitv 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 la „s by tire, hazards included wnhm the term "extended coverage” and any other hazards for which Lender
<br />requires insurance. This mwrance shall he maintained In the amounts and :'or the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably 'withheld
<br />All insurance poucies and renewals shall he acceptable to Lender and ,hall include a standard mortgage clause.
<br />Lender shall have the right it, hold the policies and renewals. If Lender requires, Borrower shall prompny give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss. Borrower thail give prompt notice to the insurance
<br />earner and Lender Lender mac make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in u r!tmg, , .,urance :oceeds shall be applied to restoration or repair
<br />of the Property dannaged. :1 the restoration or repair Is economically fear oie and Lender's security' Is not lessened if the
<br />restoration nr repair a ni)t ••alnornlcally feasible or Lender's see m'. would be lessened, the insurance proceeds shall he
<br />applied re the su t.s cuitd ',y :his Sccuniy Instrument, whether (ar not :hen due, with any excess paid io Borrower. If
<br />Borrower abanduts tic P-npcli!v ..,r d()es nor answer •.vlthin ',0 dacs a notice'rom Lender that the Insurance earner has
<br />offered to ser[le a claim. Ihcn I_c•ndc- may ;oiled the insurance proceeds Lcnuer may use the proceeds to repair or restore
<br />t:ie Property •.)r:(,')ay `,urrts `.ecureV ; ^,v' !his Sccurlt\- lnsirun'.c•nt, Isrelh.er or it(,[ then due The '0-dav' period will hegin
<br />when the notice is _tycn.
<br />Unless Lender and Born,uer otherwise agree m wr Ing• anv aPpilcallon of pro cis to pnnc:pai shall riot extend or
<br />postpone the due date of the monthiv payments referred ii i para_ iaphi i and = �_)r tat gc t: ^.e amount „ f the patmcnis. If
<br />under paragraph is the Property Is acquired by Lender, &grower's right to anv insurance pnhc;es and proceeds resuinnc
<br />from damage u) the Property prior lo'tie acquisition shall pass u, Lender to the extent of the sums secured by this Securl:y
<br />instrument Immed'ateiy prier u) the acquisition.
<br />h. Preservation and lfaintenance of Property; Leaseholds. Borrower shall not destroy, damage or ubsiantiaily
<br />change the Property', allow the Property to deteriorate air commit waste. If :his Security Instrument !s .m a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee Wile !o the Property, the leasehold and
<br />fee title shall riot nierge unless Lander agrees to the merger :n writing
<br />?. Protection of Lender's Rights in the Property; Mortgage Insurance. if Borrower fails ro perform the
<br />covenants and agreements contained in this Security Instrument. or there Is a legal proceeding that may significantly adec:
<br />Lender's rights in the Properiv !such as a proceeding In bankruptcy, probate, for condemnation or to enforce law's ;a
<br />regulations). then Linder may do and pay for u haiev'er Is necessary to proles: the value of the Property and Lender' r,chts
<br />+.n the Property. Lender's ;act':ms may Include paring any sums secured by a hen which has pnunry over Il:is Se,ur:iv
<br />Instrument, appearing in court. paying reasonable attorneys' fees and entering on the Properly to niake rrpans Altht ueti
<br />Lender may lake ac:;; >n unc.cr this paragraph -. Lender does not ha,c to dt, so
<br />Alit amounts duhu sed h: Lender under this paragraph i shall hCLOMC additional debt vi Horc+wrr,ccured by
<br />Security Instnnncn, Unless Borrower and Lender agree to other terms (,f payment. these amounts shall hear :nrere,t Irani
<br />the date of disbursement at the Note rate and shall he payable. N!th Inleresi. upon notice from Looder io Rorr, ,c-
<br />requesting payment
<br />if Lender required mortgage insurance as a condition of making the loan secured by this Security insirurncni.
<br />Borrower shall pay the pr' nllims required to maintain the msura^cc in et%cr until such tittle' as the requirement sex the
<br />insurance r •rmin n is In ace _rd ince with Borrower's and Lender's written agreement or apphrabic law
<br />N
<br />8. Inspection. Under or its agent may make reasonahle enines upon and mspecttons ,,I the Pr „piety 1 rider
<br />>
<br />,hail ;;ti t• Borrnrye u,t:ee at the tirne of nr prior tit an inspectunt specifcmg reasonable cause for the Inspection
<br />�'�4
<br />.f
<br />y Condemnation. I t a tna.eeds of any guard .r cratrn for damages direct (,r ronsequent•a), in : ric•rn( t vy,u,
<br />are :or m. ❑ni n r weer grim, of any part r,f ' ie Property. )r for comr:ance In hew at ordvlrlrut r,. as .u`c•-•.
<br />(0i
<br />a .igit u a ilia. k ;::,id 1 ,•'ales
<br />a • •il- • ".,.w .i a !A "AmL, •. :f the Prnpertv, the pr°�T:.eeds Oiail! nr ',it'Dlird :n•. .. 11 inured „v ••,,, ``(•. n�,.,.
<br />�yi!h ens zx: e.. , dlii ' B(i 1111' ••a: ... ;!i, .,I ;a6i�i a.
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