|
<br />I
<br />
<br />,
<br />84--1 004616
<br />
<br />r
<br />
<br />Lender pays Borrower inlerest 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 Ihe Funds, Unless an agreement is made or applicable law
<br />requires inlerest to be paid, Lender shall not be required to pay Borrower any interest or earnings on Ihe Funds, Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credils and debits to the Funds and Ihe
<br />purpose for which each dehit 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 pay~enls 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 promplly repaid to Borrower or credited to Borrower on monthly payments of Funds: Ifthe
<br />amount of the Funds held by Lender is not sufficient to pay Ihe 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 Ihis Security Instrument, Lender shall promptly refund wBorrower
<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 againsl 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 underthe
<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, fines and impositions allributable to the
<br />Properly which may attain priority over this Security Instrument, and leasehold paymenlS or ground' rents, if any,
<br />Borrower shall pay these obligations in the manner provided in paragraph 2. or ifnot 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 ofamounlS
<br />to be paid under this paragraph, If Borrower makes these payments direclly, 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 to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in g9Qd
<br />faith the lien by. or defends against enforcement of the lien in, legal proceedir'~ which in the Lender's opinion operilteto
<br />prevent the enforcement of the lien or forfeiture of any part of the Prot"';~y: ": (c) secures from the holder oflhe lien an
<br />agreement satisfactory to Lender subordinating the lien to this Securi : llstr:,mem, If Lender determines that any part of
<br />the Property is subject to a lien which may anain priorilY over this Security Inslrument, Lender may give Borrower a
<br />notice idenufymg the lien, Borrower shaH satisfy the lien 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 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 carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall nOlne
<br />unreasonably withhe1d,
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause,
<br />Lender shall have the right to hold the policies and renewals, If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal nOllces, In the event of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof ofloss 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 Lender's security is not lessened. If the
<br />restoration or repair is nOI economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower, If
<br />Borrower abandons the Properly, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim. then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or reslore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due, The 30-day period will begin
<br />when the notice is given,
<br />Unless Lender and Borrower otherWISe agree in writing. any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments, If
<br />under paragraph 19 the Property IS acqUIred by Lender, Borrower's right to any msurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition,
<br />6, Preservation and Mainlenance of Property; Leaseholds, Borrower shall not destroy. damage or substantially
<br />change the Property, allow the Prop~rty to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the leas~, and tfBorrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing,
<br />7, Protection of Lender', Rights in the Property; :\1ortgage Insurance. If Borrower falls to perform the
<br />covenants and agreements contained in this Security Instrument, or there IS a legal proceeding that may significantly affect
<br />Lender's rights m the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's nghts
<br />in the Property, Lender's actions may include paying any sums secured by a lien which has prionty Over this Security
<br />Instrument, appearing m court, paying reasonable attorneys' fees and entering on the PrOp~rty to make repairs. Although
<br />Lender may take acUon under thIS paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additIOnal debt of Borrower secured by thIS
<br />Security Instrument. Unless Borrower and Lender agree to other terms ofpayrnc-nt. these amounts shall bear interest fn.1m
<br />the date of disbursement at the Note rate and shall be payable. I,\:ith interest. upon noti~~ from Ll:'nder to Borro\\;er
<br />requesting payment.
<br />If Lender reqUIred mortgage Insurance as a condllion 01 makmg tile loan secured by thts Secunty Instrument,
<br />Borrower shall pay the premiums reqUIred to mamtain the insurance in effect unul slIch tIme as the requIrement for the
<br />insurance terminates in accordance with Borrower's and Lender's written agreement or applicable la\\-;.
<br />8, Inspection. Lender or Its agent may make reasonable elllnes upon and Inspections of the Prop~rty. Lender
<br />shall give Borrower notice at the time of or pnor to an inspectlon speCifying reasonable cause for the lOspeclton.
<br />9. Condemnation. The proceeds, of any award or claim for damages. direct or ..:onsequential. in i..:onnection with
<br />any condemnation or other taking of any part of the Property, or for conveyance in lieu cl cnndemnatlonf Jrc hereb:-r
<br />assigned and shall be paid to Lender.
<br />In the event of a total takmg of the Prop~rty, the proceeds sh,ll be apphed to the sums secured by tillS Seeuntv
<br />Instrument, wheth~r or not then due, with any e~cess paId to Borrower. In the event <,I' a partial t,king of the PropcflY.
<br />unless Borrower and Lender otherwise agree in wrltmg, the sums \ccured by thiS Secunty Imarument '.,hali b~ rcdlJ..:~~J h~
<br />the amount of the procee(l~ muluplied hy rht;' followmg fraC.lion: (a} the total amOl.,lnt df the "'lUllS 'il:i;UrcJ ,mmedw.tc,h
<br />before the taking, dlvtded by (h) [he fall' market vaJue of the Property immeJuHcly hcforc the takmg. '\ny b:.ltan":t~ .::.hal1 1'(
<br />paid to BOffl.)W.er.
<br />
<br />
<br />
<br />L
<br />
|