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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 tray agree in wrtnng 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 />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 />Mote; third. to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />S. 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 (o 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 it) 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 ,uhordinating 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 Idennfytng the lien. Borrower shall satisfy the hen 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 tire, hazards included within the term "extended coyeraee" and any other hazards for which Lender
<br />requires Insurance. This Insurance ,hall he maintained in the amounts and for the periods that Lender requires. The
<br />insurance cannier providing the Insurance 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 ,hall Include a standard mortgage clause.
<br />Lender shall ha ye the right to hold the policies and renewals. If Lender requires, Borrower shall promptly grce in Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender Lender may snake proof of loss If not made promptly by Borrower
<br />Unless L ender and Br,rrowcr otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Prorc•rty larnaged. ;d (lie restoration or repair Is economtcalty (easrnde and Lender', security is not lessened. If the
<br />restoration or reran , n•a <.,..,•,mi: ;dly �easlble or Lender's security would be lessened, the insurance proceeds shall be
<br />applied t,• vtr sun:, need ''. 'his Sccur:ry instrument, whether .)r not :hen due• with any excess paid to Borrower. If
<br />Borrowe ah •!d „rte - i' I << ,. :71 ales no! answer within 30 clays it nonce front Lender that the insurance earner has
<br />ud•ered f ,eulr hen I crloe( nay :-ilea the Insurance proceeds. Lender may use the proceeds to repair or resrore
<br />the Proper[`. It, ray •.um, thus Security instrument, wftether rr riot ?hen due The 10 -day period will begin
<br />when :he
<br />nrt :c i, yin
<br />L: nles'. 1 ender and Burn,uer •rthctwisC agree in wnnng..ulj eppiirtunn ,rf pn?ceeds to principal shall not extend or
<br />postpone the dre ua :e c,f the rnonthly payment, rr,-lel led To ui paragraphs 1 .end - or :hange the amount of the paymenis. if
<br />under paragraph !' -I Itie Pr,,perty is :i gtttred by Lender. Borrower' right !n :ill% insurance rolicle, ar,d pr „ceeds resulting
<br />from dainage to the Property prior to ;he acquultio.n shall pass to I ender ;u (iii , atent , f the sums ecured by !his Sccuntti
<br />Instrument nnmedcatcly prior to the acqutsmi;n.
<br />6. Preservation and 'Maintenance of Property: leaseholds. Borrowcr shall not de,rrc;v, damage or substantially
<br />change the Property. ailuw' (he Property to dc(enc,rate or :nmmi( wa,ic 11 this S”: inty lmtrumcni is on a leasehold.
<br />Borrower shall comply with the pmvisums of the lease. and if ilorr:,wer acquires fee title to the Property, the leasehold and
<br />fee title shah not merge unless I ender agrees to the rrierger in venting
<br />1. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fills to perhxtr the
<br />:covenants and agreements t :onianted In ;fits Security instrument• or there is a Icgal procceding that may significantly affect
<br />Lender's rnthD tit the Property (such as a proceeding tit hankruptcy, piohate. for condemnation or t., enton:e laws .,r
<br />regulations), then Lender [nay dc, and pay for whateier Is necessary to protect the yaluc'of the Property and Lrndet', riche,
<br />in the Prapvty. Lende'r's actions may utcludc paving ally sums secur'cd by a !ten which has pnonr•, ,,ycr !ht, �erur n
<br />instrument. appcantit in .curl, paying reasonahle,utorncys' fees and entiertng on the Properly lo make rrp.urs Alth, 11011
<br />Lcndcr may iake gets ,n miller this jmraeraph ”. I antler ,foes no( have in do so
<br />Any arornnir, dr,hursed by Lrndet under (ills paragraph " shall hecxunc adtilhonal .tebi ..f B;'r•owcr scc;ueii hi I his
<br />Security lnsrr; :ncnt L nlcs, Borrower and Fender agree to other trims ,',t r.iymem. these amount, sh.lii heal :nietr,i G ;;i
<br />the date of <ll,nvr,erncnr at the Vote rate and shall he payahle. with lnteiesi. uron nonce froth lender t,` Hru� „y r-
<br />requesting payment
<br />If Lander required mortgage :tr urance is a condition of making itic loan secured by this Svcutiry in,inimcni.
<br />harrower Sh;di nay the prerri required lo maintain the insurance to ofi'ect Lentil such tittle as the requirement !i,r the
<br />n,ur iC rrliimllcs it con ! u it a tih li,irrowc('s and Lender's written agiecinew or appli . ihle !aw
<br />14 Inspection ' c rice ,r ii, agent m iy make reasonable entries upon and nupcuuats „I' ncc Pr shit <• 1 : .t•,
<br />snail fl ,.. -••.a• r i, .. sir the it t „r I,twr to an lnspectu,n speci fying re.tsonahIC cause or the iris; e, rwit
<br />9. (orictcmnaunn. f l,r ;:!r,i 11T&, it any award .,i lain h,r damages. 1111CO nr ,•unsequrnna;..n c I'1111t% ii!lii
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<br />.,ane<i ,,I:
<br />II..I , 6. •i 1; -1 the Prnrerry th' ,�ruc reds ,hall i., in(,hq•d .c` •etc ,.u•,...., nisi '`, ii, tin,; �, ,:,
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