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85-- 00532
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender =.o 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 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. I£ 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 male 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 />anv 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.
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<br />3- ication of Paytaents. Unless applicable Law provides otherwise, all payments received by Lender under
<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 />!. Charges: Lien& Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and Ieasehold 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 furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has pnonty over this Secur iv Instrument unless Borrower: fa)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, fbj 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 ic; secures from the holder of the lien an
<br />agreement ;atisfactory :o Lender subordinating the lien to this Security Instrument. If Lender determines that any pall . of
<br />the Property is subiect to a lien which may attain priority over this Security Instrument. Lender nay give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the acnons set forth above within l0 days
<br />of the giving of notice.
<br />S. Hazard insurance. Borrower shall keep the improvements now existing or hereafter erec :ed on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazards fir which Lender
<br />requires !risurance. This insurance shah be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carver providing the insurance shall be chosen by Borrower ,ub)ect to Lender's apprc%ai 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 Wight to hold the policies and renewals. If Lender requires. Borrower snail prnmptiv gave to Lender
<br />all recc:pis of paid premiums and renewal notices. In the event of loss. Borrower shall g:ve prompt nonce to the Insurance
<br />carrier and Lender Lender may make proof of'loss if not made promptly by Ber-ctwer.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ,)r r epatr
<br />of the Property damaged, if the restoration or repair is economically fean:,ie ar,c Lender's ,ecuri,% is nor ;rssened. If the
<br />restoration or repair is not econo• tally feasible or Lender's secunty wouid be lessened. the :nsurarce proceeds snail ise
<br />appliect to the sums secured by t .s _,)ecuriry Instrument. whether or not then due, with arty excess paid to Bor -ewer. If
<br />Borrower abandons the Proper ;. or noes not answer within 30 days a notice from Lender that the insurance carrier ii; s
<br />Offered to settle a Maim. then Lender may collect the insurance proceeds. Lender tnav use the proceeds tc repair er restore
<br />the Proper.., or pay Sums secured by this Security Instrument. whether ;-r not t.,.n due The 0-dac period will begin
<br />when the nonce is given.
<br />Unless Linder and Borrouer otherwise agree in writing, an% application of proceeds io principal shall not extend •r
<br />postpone the due date ofthe monthly payments referred to in, paragraphs f and = or :harre the amours of the payments. If
<br />under paragraph 1,1 the Property is acquired by Lender. Borrower's right to ant insurance policies and rrnacreds rLsuiinnz
<br />from damage u? the Property prior to the acquisition shall pass to Leri &r to the extent of the sums se :urrd i+y this Secur :v
<br />Instrument immediarcly prior to the acquisition.
<br />b. Preservation and 'Maintenance of Property; Leaseholds. Borrower shall not destrov, damage or substanrnaliv
<br />change the Propery, allow the Property to deteriorate or commit waste. If his Security Instrument is on a leasehoid.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to rite Property. the leasehold 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 Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that ma sngnthcantiy affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate. for condemnation or' enforce lams :,r
<br />regulations), then Lender may do and pay for whatever is necessa:3 to protect tine value of the Property and Lcnder's rights
<br />in the Property. Lender's actions may include paying any sums secured by alien which has p norit% ,tier this Secuni%
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Properry I,, make repairs Aithoueh
<br />Lender may take action under this paragraph Lender does not ha. c to do .,
<br />Any amounts disbursed by Lender under this paragraph , shall become addrnonai Licht ol- Bcx-ower secureu by this
<br />Security Instrument Unless Borrower and Lender agree to other terms of payment, these amounts shall bran interest frrm
<br />the date of disbursement at the Note rate and shall be payable. wnh interest, upon rwii,e Ciotti '.ender to Borrower
<br />requesting payment.
<br />if Lender required mortgage Insurance as a condition of making me Loan secured by this Security Instrument.
<br />Borrower shall pay the premiums required to maintain the insurance in effect until such time as the requirement for the
<br />insurance terminates in ar,ordance with Borrower's and Lender's written agreement or applicable law
<br />S. Inspection. Lender or its agent may male reasonable emries upon and mspections of the Property lender
<br />,,hail give Borrower nc,tice at the tame ofor prior io an inspection specifying reasonable cause for the inspection
<br />p. Condeauaation. The PTmeeds of any award cr claim for damages, direct or :onsequentiai. In :onnWI0n w trh
<br />any ;; ondemnation or oilier taking of any part of the Property. or for conveyancr ;n it.0 :,I _ondeninanon, ate here' -v
<br />a%vigncd and shall be paid to Lender.
<br />In the evert , *f tritai faking of the Prnperty. the proceeds shall he applied t, the wms secured 1,% :his Srruri'
<br />lnvtr:imcnr who neI t-„n !hen due. wail ,any t�c°ss paid io horrOwet Ire the e%eni l a T ar:i:ri Ii ,: p.,-T!,
<br />atae•s 14r. >rt : ;we, a.,c I_... -�.r ..ri}e•.x- Laeartier „i writing. ' ^e wms.ecure1 ^...his 'NC.t;:jT1 'r.�r;rt,r. .t,w ;: 1
<br />..,.,.:..Itiied i,� hr '�.ul�,u -.r :g 'i;aan,n �a: !he ;a+ , .•
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