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<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 all 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 he,
<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 a% 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 />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, Burrower 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 anv 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 />S. 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 co%eragc" and any other hazards for which Lender
<br />requires Insurance. This insurance shall be maintained tin the amounts and for 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 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 />311 receipts of paid
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<br />premiums and renewal notices. In the event of loss, Borrower shall 91 %c prompt nonce to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrrver.
<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 arid Lender's security is not lessened. If the
<br />restoration or repair Is not economically feasible or Lender',; county would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, %nether or riot then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or dues not answer wlthny30 days a notice from Lender that the insurance earner has
<br />otTered to settle a claim, then Lender may collect the Insurance proceeds. Lender tray use file proceeds to repair or restore
<br />the Property or to pay sums secured by tills Security lustrunlent, w)icfher or not th
<br />when the notice a given. en due Tile
<br />e 30 -day period will begin
<br />Unless Lender and Borrower otherwise Agree in writing. any application of proceeds to principal shall [lot extend or
<br />postpone the due date of the monthly Payments re'fe'rred to In paragraphs I .rill ? or :hanLe file 'mount of the payments. B
<br />under paragraph 19 the Property is acquired by Lender, Borrower's fight 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 sums secured by this Security
<br />Instrument Immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate ar coninrt waste. If Ihls Security Instrument is on a lusehuld.
<br />Borrower shall :ornply with the provisions of the lease, arid if Borrower acquires fee title to the Property• the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage insurance. If Burrower falls to perlOrin the
<br />covenants and agreements contained in this Security Instrument, or there is a legal procceduig tJiat relay vgnuicantly aifecn
<br />Lender's rights In the Property (such as a proceeding it hankrupicy, probate, for condrnouuon or to enf)C3J Jews ,,r
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Properry and Lender's tights
<br />In the Property. Lender's actions may Include paying any sunis secured by a hen ,shlch has prionls ,),cf this Security
<br />Instrument, appearing Ill court. Paying feasonable 111101" ey's' feel arid entering tin the Pioperiy to make repots Although
<br />Lender may take action under this paragraph 7, Lender does not have to dr so
<br />Any amounts dis,hursed by Lender under it
<br />us paragraph 7 shall hecurue additional deFn Of Borrower secured by. tills
<br />Security Instrument. Unless Borrower and Lender agree to other terms ofpaynient, these arluunts shall bear Interest troni
<br />the date of disbursement at the Note rate and shall be payable, with niteresl, upon nmuce Inmi Lender to Borrower
<br />requesting payment.
<br />If Lender required mortgage insurance as a condition of making Inc loan secured by this Security Insirx[tnenf,
<br />Borrower shall pay file prennurns required to maintain file insurance in elrect until such time .1s the regturenielli for ttie
<br />insurance terminites in accordance With Borrower's and Leisder'y wmicii agreement Of apPllL:IbIC 1:1,1
<br />S. Inspection. Lender or its agent may slake reasonable entries upon and inspecti,ns of the Property Lender
<br />shall give Burrower notice at file time of or prior to an inspection specifying reasonable cause fur the Inspect on
<br />9. Condemnation. The proceeds U1 ally award or claitl) for damages. direct or conscqurntial, In connection with
<br />any condctnnation or other taking of any part of the Property, or for conveydncc In Ilea of .undemriation. lie hcict)v
<br />assigned arid shall be paid it) Lender.
<br />In c the event of a. total taking of the Property, the proceeds shall be applied to the sU1115 ',ccllred by II115 sccunty
<br />inslrurnent. whether or not hen due, with any excess paid to Borrower In the c,erit ,ri a partial faking of the 1'ny)rrt,.
<br />unless Boff —er end Lender otherwse agrce or writing,. the .urns seuircd Dy th:s �ccunr. inst:un)rnl ;hell Fo re,f tit e ;i rn
<br />the --oo of the procrvO% nndlll,lled by the kdhl%w,nl• (raru� +n
<br />:ak rg..Er.;dcd by dt)i Ihr l;ur nl.ukrI value „I tt., 1'- `cll`.
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