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Borrowgr's escrow account under the federel Reai Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C.
<br /> 2601 et seor ("RESPA"), unless another law that applies to the Funds sets a lesser amount. If so, Lender mey, et any time, collect and
<br /> holi Funds in an amount not to exceed the lesser amount. Lender may esttmate the amount oi funds due on the basis of current data
<br /> and reasonable estimates of expenditures oi future Escrow Items or othervvke in accordance wRh applicable law.
<br /> The Funds shall be heid h an institution whose deposRs ere fnsured by a federal agency, instrumentalky, or entity (includhg
<br /> Lender, H Lender is such an instkution) or in any Federal Home Loan Bank. Lender shall epply the Funds to pay the Escrow Items.
<br /> Lender may not charge Borrower for holding and appying the Funds, annually analyzing the escrow account, or verifying the Escrow
<br /> Items, unless Lender pays Borrower interest on the Funds and applkable law permks Lender to make such a charge. However, Lender
<br /> may require Bonower to pay a one-time charge for an independent real estate tex reporting serv�e used by Lender k� connection wfth
<br /> this loan, unless applicable law provides otherwise. Unless an agreement is made or applicable law requkes i�terest to be paid, Lender
<br /> shall not be requked to pay BoROwer any interest or eamhgs on the Fu�ds. Borrower and Lender may agree in writing, however, that
<br /> interest shall be paid on the Funds. Lender shall give to Bonower, wtthout charge, an annual accounting of the Funds, showing �
<br /> credits and debks to the Funds and the purpose for whbh each debR to the Funds was made. The Funds are pledped as addfttonal �
<br /> security for all sums secured by thfs Security Instrument.
<br /> If the Funds held by Lender exceed the amounts permkted to be held by applicable law, Lender shall account to Borrower Ior the �
<br /> excess Funds in accordance wkh the requtrements of epplbable lew. If the amount of the Funds held by Lender at any ttme is not �"1
<br /> suHicient to pay the Escrow Items when due, Lender may so notNy Borrower in wrkhg, and, in such case Borrower shall pay to Lender �
<br /> the amount necessary to make up the deficiency. Borrower shall make up the defbiency in no more than twelve monthly payments, at
<br /> Lender's sole discretion. �
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by 1�
<br /> Lender. If, under paragraph 21, Lender shall acquMe or sell the Property, Lender, prior to the acqufskion or sale of the Property, shall
<br /> appy any Funds held by Lender at the time of acquiskion or sale as a credR against the sums secured by this Security Instrument.
<br /> 3. Application of Payments. Unless applicable law provides othenroise, all payments received by Lender under paragraphs
<br /> 1 and 2 shail be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragrsph 2; thMd
<br /> to interest due; fourth, to principal due; and last, to eny tate charges due under the Note.
<br /> 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and ImposRions attributable to the Property
<br /> which may attain priority over this Security Instrument, and leasehold payments or ground rents, i( any. BoROwer shall pay these
<br /> obligations in the manner provided in paragraph 2, or if not paid in that manner, Sorrower shall pey them on time dkecty to the person
<br /> owed payment. Borrower shall prompty fumish to Lender all nottces of emounts to be paid under this paragraph. If Borrower makes
<br /> these payments directly, Borrower shall promptly fumish to Lender receipts evidenc�g the payments.
<br /> Borrower shall promptty discharge any lien which has priority over this Securky Instrument unless Bonower: (a) agrees In wrkfng to
<br /> the peyment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends
<br /> against enforcement of the lien in, legal proceedings wh�h in the Lenders opinion operate to prevent the enforcement of the Iien; or (c)
<br /> secures irom the holder of the lien an agreement satisfactory to Lender subordfnating the lien to this Securky Instrument. Ii Lender
<br /> determines that any part of the Property fs subject to a lien which may attain priortty over this Secu�ity Instrument, Lender may give
<br /> Borrower a notice identitying the lien. Bonower shall satisty the lien o� take one or more of the actions set forth above wRhin 10 days
<br /> of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existfng or hereafter erected on the
<br /> Property insured against Ioss by fire, hazards inciuded within the term "extended coverage" and any other hazards, including floods or
<br /> flooding, for which Lender requires insurance. This insurance shaii be maintained in the amounts and for the periods that Lender
<br /> requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval wh�h shall not be
<br /> unreasonably wkhheld. If Bonower fails to maintain cove�age described above, Lender may, at Lende�'s option, obtein coverage to
<br /> protect �ender's rights in the Property in accordance wkh paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have
<br /> the right to hold the policies and renewals. If Lender requires, Bonower shall promptly ghre to Lender all receipts of paid premiums
<br /> and renewal notices. In the event of loss, Borrower shali give prompt notke to the insurance carrier and Lender. Lender may make
<br /> proof of �oss if not made promptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoratfon or repak of the Property
<br /> damaged, 'rf the restoration or repak is econombaly feas�le and Lenders securRy is not lessened. If the restoration or repair is not
<br /> economically feasible or Lenders security would be lessened, the insurance proceeds shall be applied to the sums secured by this
<br /> Securky Instrument, whether or not then due, with any excess paid to Borcower. If Borrower abandons the Property, or does not
<br /> answer within 30 days a notice f�om Lender that the insurance carrier has offered to settle a claim, then Lender may collect the
<br /> insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Security
<br /> Instrument, whether or not then due. The 30-day period will begin when the notice (s given.
<br /> Unless Lender and BoROwer otherwise agree fn writing, any applicatfon of proceeds to principal shali not extend or postpone the
<br /> due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21
<br /> the Property is acquired by Lender, Borrower's right to any insurance polfcies and proceeds resufting from damage to the Property prior
<br /> to the acquisition shall pass to l.ender to the extent of the sums secured by this Securfty Instrument immediately prior to the
<br /> acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br /> Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sucty
<br /> days aiter the execution of this Security instrument and shall continue to occupy the Property as Borrowers principal residence for at
<br /> least one year after the date of occupancy, uniess Lender otherwise agrees in writing, which consent shall not be unreasonably
<br /> withheld, or unless extenuating circumstances exist which are beyond Borrowers control. Borrower shall not destroy, damage or impair
<br /> the Property, allow the Property to deteriorate, or commk waste on the Property. Borrower shall be in defauft N any forteiture action or
<br /> proceeding, whether civil or criminal, is begun that &� Lender's good faith judgment could resuR in forfekure of the Property or otherwise
<br /> materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a defauR and
<br /> reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith
<br /> determination, precludes forfekure of the Borrower's interest (n the Property or other material impairtnent of the Nen created by this
<br /> Security Instrument or Lender's security interest. Borrower shall elso be in defauR M Borrower, dur�g the loan application process,
<br /> gave materially false or inaccurate information or statements to Lender (or failed to provtde Lender wRh any materiel tnformation) h
<br /> connection with the loan evidenced by the Note, including, but not limked to, representations conceming Borrower's occupancy of the
<br /> Property as a principal residence. If this Securiry Instrument is on a leasehold, Borrower shall comply wRh all the provisbns of the
<br /> lease. If Borrower acqukes fee tkle to the Property, the leasehold and the fee title shall not merge unless the Lender agrees to the
<br /> merger in writing.
<br /> Form 302! 9/�0
<br /> Ft029.LM0(10/67) Paps 2 ot b
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