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<br />84,-
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<br />005526
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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 interesl shall be paid on Ihe Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required 10 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.o the Funds and the
<br />purpose for which each den!t to the Funds was made, The Funds are pledged as addilional security forthesuins secured by
<br />this Security Instrument. .
<br />If the amount of the Funds held by Lender, together with the future monthly paytpents 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 />amounl oflhe 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 refllnd to BOrrower
<br />any Funds held by Lender, If under paragraph 19 the Property is sold or aequired 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. Unless applicable law provides otherwise, all payments received by Lellderunder
<br />paragraphs I and 2 shall be applied: firsl, to late charges due under the Note; second, to prepayment charges due under the
<br />Note; Ihird, 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 Instrument, and leasehold payments or ground rents, if any,
<br />Borrower shall pay Ihese 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 flImish 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 oflhe obligation secured by the lien in a manner acceptable to Lender; (b) contests ingood
<br />faith the lien by, or defends againsl enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeilure of any part of tL :>-operty; or (c) secures from the holder of the lien an
<br />agreement salisfactory to Lender subordinating the lien to tho. ::-. u.rdy Instrumnc. If Lender determines that any part of
<br />the Property is subject to a lien which mayottain priorily .,.. this Security InstrumelJt, Lender may give Borrower a
<br />notice identifying the lien, Borrower shall satisfy the lien or lake one or more of the actions set forth above within 1'0 days
<br />of the giving of notice,
<br />5. Hazard Insurance, Borrower shali keep Ihe improv~menls now existing or hereafter erected on the Propeny
<br />insured against loss by fire, hazards included wilhin the term "extended coverage" and any other hazards for which Lender
<br />requires insurance, This insurance shali 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 shail not be
<br />unreasonably wlthhe1d,
<br />All insurance policies and renewals shall be acceptable to Lender and shaH 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 nOlices, In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender, Lender may make proof ofloss ifnot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of Ihe Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />resloration or repair 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 !nsU'umefll. whether or not then due. with any ex;;...~ paid to Borrower. If
<br />Borrower abandons the Property, or does not answer wilhin 30 days a notice from Lender that Ihe 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 />Ihe ProperlY or to pay sums secured by this SecurilY Inslrument, whelher or not Ihen 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 due date oflhe monthly payments referred to in paragraphs I and 2 or change the amounl of the payments, If
<br />under paragraph 19 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 eXlenl of the sums secured by this Security
<br />Instrument immediately pnor 10 the acquisillon,
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not deslroy. damage or subslantially
<br />change Ihe Property. allow the Property to deteriorate or commit waste, If this Securily Instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title 10 the Property, Ihe leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing,
<br />" Protection of Lender's Rights in the Property; :\Olortgage Insurance, If Borrower fails 10 perform the
<br />covenants and agreements con tamed in thIS Security Instrument, or there is a legal proceeding thai may significanlly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or 10 enforce laws or
<br />regulalions), then Lender may do and pay for whalever is necessary to protect the value of the Properly and Lender's rights
<br />in the Property, Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument. appearing in court, paying reasonable atlorneys' fees and entering on the Property to 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 additIOnal debt of Borrower secured by Ihis
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear Interest from
<br />the date of disbursement at the Note rate and shall be payable. with interest, upon notice from Lender to Borrower
<br />requesting payment.
<br />If Lender required mortgage insurance as a conditIOn ot makmg the loan secured by this Securily Instrumenl,
<br />Borrower shall pay the premiums required to maintain the insurance III effect until such time as the requirement for the
<br />insurance termmates in accordance with Borrower's and Lender's written agreemenl or applicable law,
<br />8. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Properly. Lender
<br />$hall alVP Rnrrow~r noti(~e ar the time nf or nrior to an tusoection snecifvin.ll reasonable cause for the inspection.
<br />n O. 9~ -C~~de';';;'tio-;;. -. Th~-p-;;;';~~d~ ~i';ny ~ward ~r claim for d~m;ges. direct or consequential: in connection WIth
<br />any condemnation or other taking of any part of the Property. or for conveyance in lieu of condemnation, are hereby
<br />assigned and shall be paid to Lender.
<br />In Ihe event of a lotal taking of the Property, the proceeds shall be apphed to the SUlllS secured by this Secunty
<br />Instrumenl, whether or not then due, with any nCe:>5 paid to Borrower. In the even! of a partlallakmg of Ihe Property.
<br />unless Borrower and Lender otherwise agree 10 writing, Ihe SUlllS secured by thiS Secunty Instrument shall be reduced b,
<br />the amount of the proceees lllultiphed by the followmg fractIOn; (al the tOtal amount of the sums secured ImmeUlate!,
<br />before the laking, diVided by (b) Ihe faIr market value of the Property Immediately before the lakmg. Any balance shall be
<br />paid to Borrower
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