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<br />B4~~
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<br />005643
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<br />Lender pays Borrower interest on the Funds and applicable law p~rmits Lender to make such a charge, Borrower and
<br />Lender may agree in wriling that interest shall be paid on the Funds, Unless an agreemenl is made or applicable law
<br />requires interest 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 charile, an annual accounting oflhe Funds showing credils and debits to the Funds and the
<br />purpose for which each dehit to 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 paytpents of Fur:ds pay,!!ble prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay Ihe eserow items when due, the excess shall be,
<br />al Borrower's option. eilher promplly 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 Securily Instrument, Lender shall promptly refund 10 Borrower
<br />any Funds held by Lender, If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, DO later
<br />than immediately prior to the sale of the Property or ils acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credil 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 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 Instrument, 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 oflhe lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent t he enforcement of the lien or forfeiture of any part of the Property; or (c) secures from Ihe holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this w .. --it)' Instrument. If Lender determines that a,,'1j' part of
<br />the Property is subject to a lien which may attain priority". - . ," Security hs'nmept, Lender may give Borrower a
<br />notice IdentifYing the lien, Borrower shall satisfy the lien or" -.e one or more of the actions set forth above within 10 days
<br />of the gIving ofnotlce.
<br />S, 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 shail be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withhe1d,
<br />All insurance policies and renewals shail be acceptable to Lender and shaH inciude a slandard mortgage clause.
<br />Lender shaH have the right to hold the policies and renewals, If Lender requires, Borrower shall promplly 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 />carner and Lender. Lender may make proof ofloss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in wriling, insurance proceeds shall be applied 10 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 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 thai the insurance carrier has
<br />offered to settle a claim. then Lender may collect Ihe insurance proceeds, Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Securtty Instrument, whether or not then due, The 30-day period will !:legin
<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 c)f the monthly payments referred to in paragraphs I and 2 or change the amounl of the payments, If
<br />under paragraph I Q 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 extent of the sums secured by this Security
<br />Instrument Immediately prior to the acqUIsition,
<br />6, Preservation and ;\1aintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, aHow the Property to deteriorate or commit waste. If thIS Security Instrument IS on a leasehold,
<br />Borrower shall complv with the proviSIons of the leo.se. and if Borrower acquires fee title to the Property, the leasehold and
<br />fee tIlle shall not merge unless Lender agrees to the merger in writing.
<br />7, Protection of Lender's Rights in the Property: ;\Iortgage Insurance. If Borrower fails 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 fIghts in the Propeny (such as a proceeding In bankruptcy, probate, for condemnation or 10 enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Propeny and Lender's fIghts
<br />in the Property. Lender's actions may include paying ;1ny sunlS secured by ;1 lien which has priority over this Secunty
<br />Instrument, appearing m court. paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender mav take aCllon under thIS paragraph ~. Lender does not have to do so.
<br />Any amouniS disbursed by Lender under thIS paragraph 7 shall become adelillona! debt of Borrower secured by thIS
<br />SecufIty Instrument. Unless Borrower and Lender agree to other terms ofpa~ment, these amounts shall bear Interest fr0m
<br />the date of disbursement 3t the Note rate and shall be payable, with Interest. upon notice from L~nder to Borro\l,-er
<br />requestmg payment.
<br />If Lender required mortgage insurance as a conditIOn ol makmg tne loan secured by thIS Secunty Instrument,
<br />Borrower shall pay the premIUms reqUIred to matntaln the Insurance In effect until such time as the requirement for the
<br />insurance termlIlates In accordance with Borrower's and Lender's written agreement or applicable law.
<br />8. Inspection, Lender or its agent may make reasonable entries upon and lflspecllons 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 clai,n for damages, dIrect or consequential. In connection with
<br />any condemnallon or other taking of any part of the Property, or for conveyance m lieu of condemnatIOn, are herebv
<br />assigned and shall be paid to Lender.
<br />In the event of a total takmg of the Property. ,he proceeds shall be applted to [he "lntS secured bv thIS Secunt\'
<br />Instrument, whether or not then due. with any excess paId to Borrower. In the event of:1 partlai takIng. t)f the Properr\'.
<br />unless. Borrower and Lender otherWise a.gree In wrttmg, {he ~ums secured by thIS Seeunty [nsrfument ~hall he reduced !"y
<br />the amount ,)1 ~he proceec<; multIplied by rhe follOWIng fraction: ~a) [he f,)!::l! amount (if the ,um:-.; 'lecureu imnll.::"Jlat.:h
<br />t:-.etOft~ the lakmg. dlY\ueJ by q,} the faIr market value of the Pn""'lpeny immedIately hefnfe the Uku1.l; _\ flY halance ...hall h~
<br />raHi tu Hnrrown
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