|
005684
<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 wnting 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 dehit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />{— this Security Instrument.
<br />1 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 Furds 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 L. ender, 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 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 aitnbutable 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 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 priority over this Security Instrument unless Borrower: (a)
<br />agrees in wnting to the payment of the obligation secured by the hen 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 hen 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 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 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 or hereafter erected on the Property
<br />insured against toss by fire, hazards included within the term "extended coverage "' and any other hazards for which Lerider
<br />requires insurance This insurance shall he maintained in the amounts and f,ir the periods 0,ar Lender requires. -The
<br />insurance carrier providing the insurance shall be chosen by Borrower tiublect :o Lender', approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall he acceptable to Lender :ind ,hall :nrlude a srar,dard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals If Lender requires_. Borrenyer ,hail prornptl% give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shai! i•,c prompt notice to the insurance
<br />carrier and Lender Lender may make proof of loss if not made promptly h} Borrower
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shat! he applied to restoration or repair
<br />of the Property damaged, if the restoration or' repair is economically feasible and Lender's securit.. is not lessened- if the
<br />restoration or repair is not economically feasible or Lender' security would he !emened. the insurance proceeds shall ire
<br />applied to the sums se -cured by this Security instrument, whether or not then due. Nvnth any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 0 days a nonce from Lender that the insurance career has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender inay use the p rocecds to repair or restore
<br />the Property or to pay sums secured by this Secuniv Instrument, whether or not :hen due The ?0 -day period will heeir
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing. Jlny applicanon of proceeds to principal shall not extend or
<br />Postpone the due date of the monthly payments referred to to paragraphs i and 2 ,ir hartcc the amount of the payments. if
<br />under paragraph IQ the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the esrettr .;f the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Burrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security imtrumenr is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold anti
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; 1*11ortgage Insurance. If Horrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding th ray ay significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate. for condemnation or to enforce laws or
<br />regulationsi, then Lender may do and pay for whatever a necessary to protect the value of the Property and !_ender'% tights
<br />in the Property. Lender's actions may include paying any sums secured by a hen which has prwrtr, ;tier this Security
<br />Instrument. appearing in court, paying reasonable attorneys' fees and enrenng on the Property to maisc ret):rirs ;',ithou¢h
<br />Lender may take action under this paragraph', Lender does not have to di, so
<br />Any amountsdisbum-d by Lender under this paragraph 7 shall hecome ady;uuin,ii.feM 1 li „rtrwet ,cyI red by this
<br />Security instrument. Unless Borrower and Lender agree to other terms of payrnenf. these anu,unis shall bear s le rj front
<br />the date of disbursement at the "yore rate and shall he payable• w•tih interest. upon notice 1'10111 Lender to Botnowe-
<br />requesting payment.
<br />If Lender required mortgage insurance as a condition of making the loan secured by this Security lnsUUrocni.
<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 accordance with Borrower's and Lender's written agreement or applicable law
<br />S. tnspectlon. Lender or its agent may make reasonable entries u1+on and inspections Of 'tic Property l.cmici
<br />Lshall give Borrower notice at the time of sir pnor to an Inspection specifying reasonable cause eo, the uisMll'in
<br />9. Condersinetion, the proceeds of any award or claim for damages• direct or consequential, in connection wish
<br />apy coed- mnation or other faking cif any part of the Property, or for conveyance in lieu „f condcnmannn, slit hem,,
<br />assigned and shall to paid to [.endev
<br />In the event of a total taking of the property, the pnx.eeds shall he applied in the %orris se,urcd ! +y Ott% se, 11111,
<br />Instrument. whether ,r w t then due, with any excess paid to Borro-Art In the .yen, .,i ,i ;,nrt:11 ,ikmi: h, 1'r,y,
<br />unless [ksrr„wcr and l ender „Iherwme agree in writing. Olt' •01111% ux:urctl 1,, !his tir,uni• !;,,; i,•,,! ,!, ��!,,,• rr,iu,c,l ! ,
<br />the amount ( ,he pl ,ceri's inuttiplied h,% the 1nU„wuig Fla,u,ai ra itie ,:,sal .0 n,n:rt h.• ,r. •,,n•d tn,.iur,.ti,it, ^h
<br />hafar - the !ak ng... vulea] t,v thi the fiul aiaikrt ,uLx• „(;hN l'r „rcn� - me,r,h,n.•I, ,�- ,. y „ • ,il,iri.r .hap' �,
<br />,lt:d t„ 11r•r
<br />11
<br />
|