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<br />24<- 004644
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<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 law
<br />requires interest to be paid, Lender shall not be required to pay Borrower eny interest or earnings on the Funds, Lender
<br />shaJl give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to Ihe 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 paYl)lents of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required 10 pay the escrow items when due, the excess shaJl 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 10 pay the escrow items when due, Borrower shaJl pay to Lender any
<br />amount nece'5ary to make up Ihe deficiency in one or more payments as required by Lender,
<br />Upon payment in fuJl 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. Uniess 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 aJllaxes, assessments, charges, fines and imposiJions attributable to the
<br />Property which may attain priority over this Security Inslrument, 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 Instrumenl 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 good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedi'lgs whicc in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Prop~rty: '. < (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien ,0 this Secur tnse ".ment, If Lender determines thai any part of
<br />the Property is subject to a lien which may attain priomy over thi, "ccurity Instrument. Lender may give Borrower a
<br />notice IdentifYing the lien, Borrower shaJl satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the glving of notice,
<br />5, Hazard Insurance. Borrower shall keep the improvements now exisnng or hereafter erecled 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 carner proVIding the Insurance shall be chosen by Bocrower subject to Lender's approval which shall not be
<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 nght to hold the poliCIes and renewals. If Lender requires, Borrower shaJl promplly give to Lender
<br />all receIpts of paId premIUms and renewal notices, In the event ofloss, 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 wnting, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the reslOralion or repair is economically feasible and Lender's security is not lessened, If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied 10 the sums secured by this Security Instrument, whether or not then due. Wilh any e"cess paid to Borrower, If
<br />Borrower abandons the ProperlY, or does not answer within 30 days a notice from Lender that lhe insurance carrier has
<br />offered to settle a .:131m, then Lender may collect the insurance proceeds, Lender may use the proceeds lO 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 nOtlce IS gIven.
<br />Unless Lender and Borrower otherWISe agree in wnting, any application of proceeds to pnncipal 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 ProperlY IS acqUIred by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property pnor lO the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument ImmedIately pnor to the acqUIsition.
<br />6, Preservation and :\laintenance of Property; Leaseholds, Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to delenorate or commit waste. If thIS Security Instrument IS on a leasehold,
<br />Borrower shall comply with the prOVIsions uflhe lease, and if Borrower acqUIres ree title to the Property, the leasehold and
<br />fee tille shall nOl merge unless Lender agrees lO the merger In wriung.
<br />7. Protection of Lender's Rights in the Property; \Iortgage Insurance, If Borrower fatls to perform the
<br />covenants and agreements contained in this Security Insuumenl. or there IS a legal proceeding that may significantly affect
<br />Lender's rights ill the Property {such as a proceeding In bankruptcy, probate. for condemnation or to enforce h1\\'5 or
<br />regulatlons), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by J lien \\-hich has prionty L)\'ef this Secunty
<br />Instrument. appeanng in court. paying reasonable attorneys' fees and cuteflng on the Property to make repaIrs. Although
<br />Lender may t.Jke a~tlon under thiS raragraph:. Lender doc:$ not have to do so.
<br />Any amounts disbursed by Lender under thIS paragraph '7 shall become J.Jdltlonal debt of Borrower secured by thiS
<br />Security Instrument. Unless Borrower and Lender J.gree to other terms 0fpayment. these amounrs shall bear mterest frl)!TI
<br />the date of disbursement at [he Sote rate J.nd shall be paj3blc. with [rHerest, upon IW[h.::e from Lender !iJ Uorrl.1\\e:--
<br />requestmg paymtnt.
<br />If Lender required mortgage insurance as a condition of mak.mg ttIe IO,.u~ secured by thiS Secunty Instr~ment.
<br />Borrower shaH pay the premiums reqUIred tu mallllalll the U1SUran(c Iii cffe,,:t until ::lu..:h um..:: J.S the rcqulrem~nt ter the
<br />insurance termmates in accordanc.: with Borrower's and Lender's written agreement or applicable law.
<br />8, Inspection. Lender or lls agent may make reasonable entnes upon and Illspectluns of the Property. LenJer
<br />shall give Borrower notice at the time of or prior to an inspet:tion specifying reasonable cause for the inspection.
<br />9. Condemnation. The proceeds of any award or claim for damages. direct or cUllsc-qllCntlaJ, \I1 connectlon wilh
<br />any condemnation or other taking of any part of the Property, or for con...-eyann: m lit:u l'f condemn-:.ltlOJ1. are hercb~,
<br />assigned and shall be paid to Lender.
<br />In the evenl of a tOlal taking of the Properly, the proceeds shall be applted t<l the sums secured by <hIS Seeunt'
<br />InslrUITlcnt. \vhether or not then due. with any excess paid to Borrower. In the event ~)f a partial wkmg of the Prl)perty.
<br />unless Borrower and Lender otherWise agree m writing, the sums ~ccurcd by thIS SecurIty Instrument ~hall be reJuct'u by
<br />the amount of the proceecs multIplied by the !{JllowlOg fral.:tion. (al the total amount l,r the ~ums ';.ecureJ ImmedIate!:
<br />before [he taking. divl(jed by (b) the faIr markt:t vaiue tifthe Property lmmelhardy b~fiJre the tak\Ilg Any ba1ail":c ,:-hal! t,t.:
<br />paid to Borrower
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