|
85 005096
<br />Lender pays Borrower interest on the Funds and applicable taw 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 />r purpose for which each dehit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />Ithis 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 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 />d. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority uver 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 riot paid in that manner, Borrower shall
<br />pay them on time directly taothe person owed payment. Borrower shall pi ompily 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 wnting 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 trom 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 giving of notice.
<br />5, Hazard Insurance. Borrower shall keep the improvements now crostme or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coserage" 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 carrier providing the insurance shall be chosen by Borrower subject to lender's approsai 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 gi%e to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt nonce to the nnurance
<br />carrier and Lender Lender may make proof of loss if not made promptly by Burrower.
<br />Unless Lender and Borrower otherwise agree in writing, Insui lice proceeds shall he applied Io 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 econoimcally feasible or Lender's security would he lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or riot then due, with any excess paid to Borrower. if
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the Insurance carrier has
<br />offered to settle a claun, then Lender may collect the Insurance proceeds Lender may use the proceeds tin repair or restore
<br />the Property or to pay sums secured by this Security instrument, whether of nut then due The 30 -.jay period will begin
<br />when the notice is given.
<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 ul paragraphs I and ? or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrow'er's rlgh! to am insurance policies and proceeds re,ulling
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this SeCnflty
<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 oil a leasehold.
<br />Borrower shall comply with the provisions of ille lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee tide shall riot merge unless Lender agrees to the merger tit writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Burrower falls to perform the
<br />covenantsand agreements contained in this Security Instrument, or there is a legal proceeding that may significantly' atfect
<br />Lender's fights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws nr
<br />regulations), then lender may do and pay for whatever is necessary u) protect the value of the Properly and Lender's rights
<br />in the Property. Lender's actions may Include paying any sums secured by a lien which has pronty oscr Ihts Securtry
<br />Instrument, appearing tit court, paying reasonable attorneys' fees and entering on the Property In make repairs : \Ithnutih
<br />Lender may take action under this paragraph 7. Lender Lines not hate to do so
<br />Any amounts dishursed by Lender under this paragraph 7 shall become addtlonal debt of Bor rower secured by. Oils
<br />Security Inslruntenl. Unless Borrower and Lender agree to other terms of payment. Ihcse amounts shall bear interest from
<br />the date of disbursement at the Note rate and shall be puyahlc, wltll interest, upon notce Irmo Lender to liollImel
<br />requesting payment.
<br />If Lender required mortgage insurance as a condition of making isle wan secured by this Security Instrument,
<br />Borrower shall pay the premiums required to maintain the Insurance in etfert until such tune as the requirement fill the
<br />insurance terminates tit accordance with Borrower',, and Lender's written agreement or applicable law b
<br />L 8. inspection. Lender or its agent may make reasonable entries upon and Inspections oI the Property. I cede;
<br />shad give Burrower nonce at the torte of or prior loan inspection specifying reasonable cause for the inspection Nil
<br />9, Condemnation. fhe procecds of any aw'ar'd ur clam, for damages, direct or oonsrquclitI'll, rut connccrtnn w th
<br />anv condemnation or other taking of any part of the Property, or for comcyaIIO. Iii Ilcu of ,.on,Irnnlatlon, arc heicb%
<br />its
<br />assigned and Shall be paid IU Leridef .
<br />In the went ,+f a n,ctl taknig of the Pt„periy, the proceeds shall he .tpt'hed II, the suns, .ecuir,l by Ihls �crull ,
<br />Instrument, w'huihcr of not then due, with any t.xress t:atd to Buoow,'r In Ili,- r,u ^Ir .,I ,I { ,u n. :l t.tklnR ''1 the
<br />unless (jutruwcr ,tail I ender iherwisc iigirc tit writing. Ill,- sums second h� this 1r1Ur11v hi,tt ulnrnt ,hell he Iruu,r,l n,
<br />the amotlitl ul the ldnicv,'s nnllut,llcd by ill" li �lluw nog 11.1, 11''l, 1.11 the I „tel All” 'It" .d ihr -.unr_ nunnit,th
<br />hett re rite t,tkulg. �II,ulr:1 !,, Ili) Ihv tau In :ukct ,alur ,It the 1'r� {,errs inn .III It, i, b. 1, Ir tl�, nI)t \I :. •.ILI ,,, h.:l: ' .
<br />pcud it Iron, — I
<br />
|