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85-= 005281
<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 iaw
<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 arc 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 />;\lone 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. Borrowef shall
<br />pay them on time directly to t.V 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 Secunn" Instrument unless Borrower: (a i
<br />agrees in writing to the payment of the obligation secured by the lien in a mariner 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 to secures from the holder of the 'lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any pan of
<br />the Property is subiect 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 abose within i0 days
<br />of the giving of nonce.
<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 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. T-he
<br />insurance carrier providing the insurance shall be chosen by Borrower subiect to Lender's approval which shall not be
<br />unreasonably withheld.
<br />.Ali insurance policies and :criewals shall be acceptable to Lender and shall :nclude a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals If Lender requires. Borrower stiaii ^r: m ti }' crce :e Lender
<br />ail receipts of paid premiums and renewal notices. In the event of loss. Borrower shall ere prompt, nonce :o ,he insurance
<br />gamer and Lender. Lender may make proof of loss if not made promptly by Borrower.
<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 and Lenders security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's secant. would x iessened. the insurance proceeds shall be
<br />applied to the sums secured by this Secunty 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 pas
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or nor then due. The ?0 -day period will begin
<br />when the norce:s graven.
<br />Unless Lender and Borrower otherwise agree in w rating, any applicanon of proceeds ; , prmcipai shall not extend Jr
<br />pmTpone the dire date of the monthly payments referred tom paragraphs 1 and 2- or ,: ^,ante the amount of :he pa} ments if
<br />under paragraph 19 the Property is acquired by Lender. Borrower's right to any insurance policies a: d proceeds resuli;nz
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Secunn
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy. damage or substannaily
<br />change the Property. allow the Property to deteriorate ,.r comma waste. if this Security Instrument is on a irasehoid.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Pr ^pert. the ieasehoid and
<br />fee *isle shall not merge unless Lender agrees to the merger to writing.
<br />,. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borr, ^wer Tanis to perform. ;lie
<br />covenants and agreements contained in this Security Instrument, or there is a !egal proceeding that may signiricantic affect
<br />Lender's rights in the Property (such as a proceeding in bankruptc% 1. probate. fcr condemnation or tc enforce iaw, -r
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Properts and Lender', i�his
<br />in the Property Lender's actions may include paying aiiy sums secured hs alien which has pr!or.t; %rr tnis rcur t;
<br />Instrument. appearing to court. paying reasonable attorneys" fees and entering on the Property ter make repairs Aithouch
<br />Lender may take action under this paragraph ". Lender does not have to do so
<br />Any amounts disbursed by Lender under this paragraph' shall become additional jest of Borrower secured ^s : ^:s
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment. these amounts hail her; interest
<br />the date of disbursement at the Note rate and shall he payable. with interest. upon rirtice from Lender !.• B.,rraaer
<br />requesting payment.
<br />If Lender required mortgage insurance as a condition of making the loan secured by this `;rcur,t Instrurreni.
<br />Borrower shall pay the premiums required to mamiain the : nsurance in effect until such time as the reuuirement for the
<br />insurance terminates in accordance , with Bonclower's and Lender's written agreement r applicable law
<br />L S. Inspection. Lender or its agent may make reasonable entries upon and inspections of The Property Lcndcr
<br />sla l give Borrower notice at the time Of OT pnor to an inspection specifying reasonahle : ause for the inspection
<br />9. Condemnation. The proceeds of any award or claim for damages. direct c,r consequrnuai. :n : rrinr, non .s W:
<br />any condemnation or other taking of any pan of the Property. sir for m lieu r,f �ondcmnantin, are her&%
<br />r
<br />assigned and shall tv paid to Lender
<br />a
<br />Tn the event of a total taking of the Property, the proeeds Shall be applied i" ihr •unis ,rcisrno ,% :his �rc.uit•.
<br />Instrument. whether rir not then due, with any gaga,, paid t,: Bee -,. wrr !n 'he e,enr "i .1 he 1 ,•ter .
<br />riles% Hotrower and I.eridcr raherwise agree iii writing, the ,isms ,ecured "v phis t -a i tic t purrs '
<br />the smounr of the pnxcecs rnultipited by the €,illciwinF fraLin,ri ,a; ! it r ,eta; a.n. tin: awn" n :......,
<br />efae trig ak +nx. ..idcu'v ,i,i!?ic f it rri2,rkrt -aiur •t ihr P t'r ^.
<br />ire u: •., 11 *rr - "•w (•!
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