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<br />..
<br />84--.
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<br />005415
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<br />Lender pays Borrower interest on ti.e Funds and applicable law permits Lender 10 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, withoul charge, an annual accounting of the Funds showing credits and debits 10 the Funds and the
<br />purpose for which each denit to the Funds was made, The Funds are pledged as additional security for the suins secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly paytpertts 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 10 Borrower or credited to Borrower on monthly payments of Funds, Ifthe
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay t6 Lender any
<br />amount necessary to r1:'iake 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 refuncltoBorrower
<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 atthetirneof
<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 Lenderuncler
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges dueunder:thi:.
<br />Note: third, to amounlS payable under paragraph 2; fourth, 10 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 Instrument. and leasehold payments or ground 'rents, if any;
<br />Borrower shall pay these obligations in Ihe manner provided in paragraph 2, or if not paid in that manner,Borrowershllll
<br />pay them on time direclly 10 the person owed payment, Borrower shall promptly furnish to Lender all notiCes of amounts:
<br />10 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 BotTQwer~(a)
<br />agrees in writing !O the paymenl of the obligation secured by the lien;, ,manner acceptable to Lender; (b) contests in good '
<br />faith the lien by, or defends against enforcement of the lien in, ,'I plOceedin!,!s ""'.eh in the Lender's opinionoperat~to
<br />prevent the enforcemenl of Ihe lien or forfeitur of 'inY part (. e Property; or (c) secures from the holder of the lien an..
<br />agreement satisfac!Ory to Lender subordinating the lien to this Security Instrument, If Lender determines that any pari of
<br />the PropertY is ,uhJ<"C! to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice Identlfymg the lien, Borrower shall salisfy the lien or take one or more of the actions set forth above withi!!. !Odays.
<br />of the glvmg 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 wilhm the lerm "extended coverage" and any other hazards for which Lender
<br />requires insurance, ThiS Insurance shall be maintained in the amounts and for the periods Ihat Lender requires. The
<br />Insurance carner providing the insurance shall be chosen by Borrower 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 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 of loss if not made promplly 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 restoration or repair is economically feasible and Lender's security is nol lessened, If the
<br />restoration or repa!r 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 ellcess paid to Borrower, If
<br />Borrower abandons the Property, or does nOI answer wllhin 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a clatm. 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 lhls Security Instrument. whether or not then due. The 30-day period will begin
<br />when the nollce is gIven.
<br />Unless Lender and Borrower otherwIse agree In writing, any application of proceeds to principal shall not extend or
<br />postpone the .jue elate of the monthly payments relerred to III paragraphs I and 2 or change the amount oflhe paymenls. If
<br />under paragraph 19 the Property IS acquired by Lender. Borrower's right to any insurance policies and proceeds resulling
<br />from dan1agt: to the PiOperty pnor to the acquiSItiOn shall pass to Lender to the extent of the sums secured by {his Security
<br />Instrument imm~diately pnor to the acqUisition,
<br />6. Preservation and :\taintenance of Property; Leaseholds, Borrower shall not destroy, damage or substantially
<br />change the Property, aHow the ProperlY to detenorate or commit waste, If this Secunty Instrument is on a leasehold,
<br />Borrower shall comply with lhe prOVISIons of the lease. and if Borrower acquires fee tllle to the ProperlY. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger III writing.
<br />7. Protection of Lender', Rights in the Properly; :\lorlgage Insurance. If Borrower faiis to pertoml the
<br />covenants and agreements contatn~d in this Security Instrument, or there is a legal proceeding thai may significantly affect
<br />Lender's rtghts tn the Property (such as a proceeding tn bankruptcy, probate, for condemnallon or to enforce laws or
<br />rellulallons), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />tn the Property. Lender's actions may melude paying any sums secured by a lien whIch has pnorny over thiS Secunty
<br />Instrument, appeanng tn court, paying reasonable attorneys' fees and entenng on the Property to make repaIrs, Although
<br />Lender may take action under thIS paragraph ", Lender does not have to do S,l.
<br />Any amounts dIsbursed by Lender under lhls paragraph 7 shall become addlllonal debt of Borrower secured by thIS
<br />Security Instrum.cnL Unless B(lffOWer and Lendc:r agret::: tQ other t~nns of paymt:Ht. tht.'"Se amounts. shall b;;:ar Hl.terest from
<br />the date of disbursement at the ~ote rate and s~all be payable, WIth mt~teSl, upon nollce from lender to BOtrower
<br />requesHng paymen.t.
<br />If lender reqUired mortgage Insurance as a condlllon ot malung the loan secured by thiS Secunty Instrument,
<br />Borrower shall pay the premIums required to mamtaln the insurance III effect untt! such time as the requirem~nt for the
<br />msurance lermltlatcs In accordanc~ wllh Borrower's and Lender's wntt~n agreement or applicable law.
<br />8, Inspection, Lender or Its agent may make reasonable enlnt"S upon and mspecllons of the Property. Lender
<br />",haH ~pve Borrower notlce;u the lIme of ur priur to an inspel:liun ~pecifying reasonable cause for the inspe-ctlOo.
<br />9. Condemnation. The proc~eds of any award or claim for damages, duCCI or consequential. in "mnectwn wilh
<br />a.ny condemnation or other taking of any part l)f th~ Propr:rty, '.Jf for conveyance m !leu i.)f ;.;ondemnatwn. J,rc hereby
<br />aSSIgned and shall be paid to Lender
<br />if' the ~\ent of a total taking of the Propeny. the- pn.x:ecds shaH he Jpphed tl1 (he \urns ::.c....un:d b~ thiS. Se~unty
<br />In~tfur~ent, whethe: ~)f" not fhen due. with any tXces~ pa,ld to Borro\\:er,. In the ~~enr df d partl;jj ta.k.ll1);. ,\.'.t the Pn)~.H::tl\"
<br />unless .tjorrower and Lender otherwise agn:e ~n wnung. Ule '\urmi ~cl..:urcu by ibl~ '"'cI....t;.nty l;p..trumenr ih..d! b',: r~Jl...K':."i..! \'"
<br />the amount of the pf(x:ec(~'S multiplied hy the followll1g fr;':h.:th.in (u} the r,lta! .lm;\!..HH ",t' the ,um:-; Se"CU1TJ irn.rncdu.lt'!~
<br />befon~ the L.i.k.ing, dn.idcd by (b) ~h(: fa.if market I,'HJU~ (.rthe Properiy nnrncduki:- h.d('.n' r.h~ !akmg ,\!\\. rJ.J..Hh.".' ,;!Ja!:
<br />p:ild te B~)rrower
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