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<br />84 -- 0047~j,
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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 wrillng 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 dehitto 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 payr,nents 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 atlhe 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 />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 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 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 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 Prop" ';; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordir:ating the lien to this S 'tit:. "tfument. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priority ove: tillS Security Instrument, Lender may give Borrower a
<br />notice identifying lhe 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 />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 malUtained in the amounts and for the periods that Lender requires, The
<br />insurance carrier providing the insurance shail be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withhe1d,
<br />All tnsurance 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 notices. 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, IUsurance 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 repUlr is not 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 Property, 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 restore
<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 1 and 2 or change the amount of the payments, If
<br />under paragraph 19 the Property IS acquired by Lender, Borrower's righl to any insurance policies and proceeds resultmg
<br />from damage to the Property prior to the acqutsItion shall pass to Lender to the e,<rent of the sums secured by this Security
<br />Instrument immediately prior to the acqUIsition,
<br />6. Preservation and Maintenance of Property; Leaseholds, Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commIt waste. If this Security Instrument IS on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee mle to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in wnting.
<br />7, Protection of Lender's Rights in the Property; :Vlortgage Insurance, If Borrower fatls to perform the
<br />covenants and agreements contained in thIS Security Instrument. or there IS a legal proceeding that may SIgnificantly alfect
<br />Lender's rights in 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 rights
<br />in the Property, Lender's actIons may mclude paying any sums secured by J lien whIch has pnonty over thIS Secunty
<br />Instrument, appearing in court, paYIng reasonable attorneys' fees and entering on Ihe Property t<J make repairs. Although
<br />Lender may take actIOn under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become addlllOnal debt of Borrower secured by thIS
<br />Security Instrument. Unless Borrower and Lender agree to other terms ofpayrnenr. these amoums shall bear {merest from
<br />the date of disbursement at the Note rate and shall be payable. with Interest, upon notIce from Lender to Borro\\'d
<br />requestmg payment.
<br />If Lender required m('r~gage insurance as a condition of makmg tne loan secured by thIS Secunty 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 accordance with Borrower's and Lender's writtt:n agtt:::t:rnenl or appiil:able law.
<br />8, Inspection, Lender or its agent may make reasonable enrnes upon and inspections of the Property. Lender
<br />shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection.
<br />9, Condemnation, The proceeds of any award or claim for damages, direct or consequential, in connectIon with
<br />any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnallon, are hereby
<br />assigned and shall be paid to Lender.
<br />In the evelll of a total taking of the Property, the proceeds shall be applied to the sums secured by this Secunty
<br />Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property,
<br />unless Borrower and Lender otherwise agree in wriling, the sums secured by this Secunty Instrument shall be reduced by
<br />the amount of the pfOceecs multiplied by the following fraction: (a) the total amount of the sums secured Immedlalely
<br />before the taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be
<br />paid to Borrower.
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