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u5- 005180
<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 pnor 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 Secunty Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender undo-
<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, tines and impositions attributable to the
<br />Property which may attain pnority 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 ; "urnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Secure% Instrument unless Borrower eai
<br />agrees in writing to the payment of the obligation secured by the lien m a manner acceptable to Lender. i b! contests in good
<br />faith the lien by, or defends against enforcement of the lien !n. legal proceedings which in the Lenders opinion operate !o
<br />prevent the enforcement of the lien or forfeiture of any part of the Proper or icl secures from the :,older of the 'lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that am pan of
<br />the Property is subiect to a lien which may attain priority over this Security Instrument. Lender mac give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions Net forth above within :0 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Proper%
<br />insured against loss by fire, 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 camer providing the insurance shall be chosen by Borrower subject to Lender S appro,ai which shall not be
<br />unreasonably withheld.
<br />All insurance poiicies and renewals shall be acceptable to Lender and shall inciude a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires. Borrower Snail pr „mp!ly gnC !o Lender
<br />ail receipts of paid premiums and renewal notices. In the event of loss, Borrower shall zi%e prompt nonce !o the :nsurancc
<br />earner and Lender Lender may make proof of loss if not made promptly by Borrower
<br />Unless Lender and Borrower otherwise agree in wnt!ng, insurance proceeds shall be applied to restoration or repair
<br />of the Proper damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security' would be lessened, the insurance proceeds shall be
<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 30 days a notice from Lender that the insurance earner has
<br />offered to settle a cia!m, then Lender may collect the insurance proceeds. Lender may use the proceeds io repair or restiire
<br />the Proper or to pay sums secured by this Security Instrument, whether or not then due The 30 -day period will he,-nn
<br />when she notice is given.
<br />Unless Lender and Borrower otherwise agree m writing, any application r)f proceeds ro princ!pai shall not extend :•r
<br />postpone the due date of the monthly payments referred to :n paragraphs i and ::;r .hange the amount of the payments if
<br />under paragraph 19 the Property Is acquired by Lender, Borrower's right to any insurance pol!cle% and proceeds resuitint:
<br />from damage to the Property prior to the acgwsition shall pass to Lender to the extent of the Sums SC :cured by !.his Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and 1laintenance of Property; Leaseholds. Borrower shall not destroy, damage or .ubs:aniiaii%
<br />change the Property, allow the Property to deteriorate or commit waste. if this Secunry Instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquirCS "CC titie !o the Pr fern'. the ieasehoid and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />%. Protection of Lender's Rights in the Property; Mortgage Insurance. If Bornlwer fails to perinrm he
<br />covenants and agreements contained in this Security Instrument, or there is a iegai proceeding t ?car may ven!iiicanl!y a;7ec!
<br />Lender's rights m the Property fsuch as a proceeding in bankruptcy, pmbaie. 4ir :Oridemnatwn 'u to ,nforc: laws :•r
<br />regulations). then Lender may do and pay for whatever is necessary to prorect the value of the Pmperr% and Lcrider'S nehi
<br />in the Property Lender'; actions may include paying any urns secured �� alien which
<br />Instrument, appearing in coup, pay reasonable attorneys' fees and entering on the i'roper!y to make repairs Aithc ugii
<br />Lender may take ac!!on under this paragraph 7, Lender does not have To do No
<br />Any amounts disbursed by Lender under this paragraph 7 shall hecc•me addluonai debt of Borrower Sccurcd bo tius
<br />Security Instrument Unless Borrower and Lender agree in other terms of payment. 111CIC .itr! •tints ?!.ill he r :nr reSt t r ti
<br />the date of disbursement at the Note rate Lind Shall he payable. wuti intrre•t. uprn allure i,�rn render !r i3rr r -�wc'
<br />requesting payment.
<br />If Lender required mortgage insurance as a condition of rnakmg !ne loan secured by this Security In%iruinCr,
<br />Borrower shall pay The premiums required !o maintain the insurance in effect until uch !Ire as The rcquuement fi•t the
<br />usurancC rerrrtnatcs in aecordaricC with Borrower'%anti Lender'% writ ten agreement -or applicable law
<br />13. Inspection. Lender nr its agent may make reasonable entries upon and inspections ,f :hc I'* •per.. 1 r ride:
<br />hail give Borrower nonce at the time of or prior to an In%pecucni Spm if%rng reasonahle cause !ni ;hc r Spey uclri
<br />9. Condemnation. The proceeds of an} award IT ;artn for damages. direct Ir ImSequc•nt ai.:n ;,v :neon :•n '411th
<br />anti umdcrr,nat;on :,r c,thcr taklniT of any part :•! the Propert_y. „r for ,,rlye>ance :n .ICU •J _•�ndtmnan, n. et!• :i :eTe "�
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