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85- 005282
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower
<br />and
<br />Lender may agree in venting 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,
<br />an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which dehit
<br />each to the Funds was made. The Funds are pledged as additional secuniv 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 />Note;
<br />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, leasehold
<br />and payments or ground rents, if am'.
<br />Borrower shall pay these obligations in the manner in 2,
<br />provided paragraph or if not paid in that manner. Borrower shall
<br />pay them on time direct!% t6 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 furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Secunty Instrument unless Borrower (a i
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender: (bl contests m 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 Secunty Instrument. If Lender determines that any par 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 Dr hereafter erected on the Property
<br />insured
<br />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 earner providing the insurance shall be chosen by Borrower subject to Lender's appro%al which shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall mciu ie a standard mortgage clause.
<br />Lender shall have the right to hold the
<br />policies and renewals. If Lender requires, Borrower shah prompt y give ;n Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall
<br />gtse prompt -once io the ; nsurance
<br />carver and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in venting, insurance proceeds shall be applied to restoration or repair
<br />of the Property damages, if the restoration or repair is -
<br />economically :asible and Lender s security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's secunly would be lessened. the Insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with arty excess paid to Borrower. If
<br />Borrower abandons the Property. or does
<br />not answer within 30 days a notice from Lender that the insurance earner has
<br />offered to settle a claim, then Lender may collect
<br />the insurance proceeds. Lender mar use the proceeds to repair or restore
<br />the Propery or to pay sums secured by this Security Instrument,
<br />whether or not then due The ?0 -das period will berm
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree to writing, any application of
<br />proceeds to p rtnctpai shall ;tit extend or
<br />postpone the due date of the monthly payments referred to in paragraphs +. and 2 or hangr the amount of the payments. If
<br />under paragraph 19 the Property Is acquired by Lender, Borrower's right to any insurance pofi ties and proceeds resuhmc
<br />from damage to the Property prior to the acquisition shall Lender
<br />pass to to the extent of the sums se: ured hr this Secunty
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shail not destroy, dartaee or substannaily
<br />change the Property, allow the Property to deteriorate
<br />or commit waste. if this securit Instrument Is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title tci the Pmperry, 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 Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument. or there Is a legal proceeding that may signifcanny affect
<br />Lender's rights in the Property (such as a bankruptcy,
<br />proceeding in probate, for condemnation -or t, enforce ;aws or
<br />regulations). then Lender may do and pay for whatever is necessary to protect the vaiur of the Properry and I. ender's rights
<br />in the Property Lender's lotions may include paying any sums secured by a lien winch has nriorrrs ,,s er this sc.: tj.
<br />Instrument. appearing m court. paying reasonable attorneys' fees
<br />and entering on the Property to make repairs :Aithuugit
<br />Lender may take action under this paragraph 7. Lender does not have to dc, so
<br />Any amounts disbursed by Lender under this paragraph 7 shall hcconic additional idcht of Borrower secured ),)% ilia
<br />Security Instrument. finless Borrower and Lender agree to other terms
<br />i>f payment. these am,>unts shall hear ;merest frr1ni
<br />the date of disbursement at the Vote rate and shall he payable, with iwere•st, upon mince `rotn Lender Rr,rrr,t.cr
<br />in
<br />requesting payment.
<br />If Lender required mortgage insurance as a condition of making the loan secured by this Secunty Instnumenl.
<br />Borrower shall pay the premiums required tp maintain the Insurance In effect until such time as the requirement for the
<br />l_ insurance terminates in accordance with Borrower's and Lender's written agreement or applicable raw
<br />E. inspection. Lerida
<br />ilti
<br />or Its agent may u
<br />make reasonable entries upon and ;nspecons 'f the Properry Lenoir
<br />,hall give Borrower rriiice at the time of or prior to an inspection specifying reasonable came Gov the inspc�tiofl
<br />9. Condemnation. The prtkcedsof any award or clairn for damage!,, duect cr;onsequcndal, n ;onr tenon u111;
<br />r.
<br />any condemnation .,r other taking „f any part of the Property, or fill conseyun:e Ir ilea :�i nndenuiau.n. arc lien h,
<br />34iigned and ,ha.i he pail it: 1. ender
<br />in the cvCnt of a total taking of the Pr>;icrty. the pr, +coeds shall be .epplie.l '.+ 'he ,urns ,r.'urc,i ',s ih,s Berl, .;
<br />Instrurt:eiii,
<br />whe!hcr q +it,[ !hen due, with aric eat :css ;,aid to Hutrower In -tic .tent :,i a ;,all;,,! ai tits ( the
<br />i3otr;rner
<br />:zilic',s and Lender + :.ther•atsc agree in wt:tul;t, the 'urns st.ured �% ,f:a Sr.urlt� 1n.;; :rncrl .h,o: be
<br />the :Im"unt ,:f c ^_c.'s multiplied 61% the !ullowutFt !'ra,_tuvi I:r+ !it,. 'e tal .I:nuuilt •i •hc Sul :i,
<br />.r' YP! :kad i:rd' �7lhe ,,Ir '1Litk�.i ,all/•.';I IheE "t'eit.. !':. i., :�V, t!r,i ,. 'hr '.t� :., \: .ii.. ..: +.
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