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Bonower's escrow account under the tederal Real Estate Settlement Procedures Act of 1974 as amended irom time to thne, 12 U.S.C.
<br /> 2601 et seq. ("RESPA"), unless another Iaw that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and
<br /> hold Funds in an amount not to exceed the lesser amount. Lender may estknate the amount of funds due on the basis of cunent data
<br /> and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law.
<br /> �The Funds shall be held in an instkution whose deposks are insured by a federal agency, instrumentality, or entity (including�
<br /> Lender, 'rf Lender is such an institution) or in any Federal Home Loan Bank. Lender shall appy•the Funds to pay the Escrow Items.�
<br /> Lender may not cherge Borrower for hotding and applying the Funds, annualy anayzing the escrow account, or verifying the Escrow '
<br /> Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. However, Lender�
<br /> may require Bonower to pay a on�time charge for an independent real estate tax reporta�g service used by Lender in connectfon with �
<br /> this loan, u�less appl�able law provides otherwise. Unless an agreement is made or applicable law requkes interest to be paid, Lender
<br /> shall not be required to pay BoROwer any interest or eamings on the Funds. Borrower and Lender may agree h wrking, however, that(�
<br /> interest shail be paid on the Funds. Lender shall give to Bonower, without charge, en annual accounting of the Funds, showing�
<br /> credits and debRs to the Funds and the purpose tor which each debit to the Funds was made. The Funds are pledged as additional�
<br /> secur'ity for ail sums secured by this Security Instrument.
<br /> !f the Funds held by Lender exceed the amounts permitted to be heid by appflcable law, Lender shall account to Borrower for the
<br /> excess Funds in accordance wRh the requirements of applicable law. If the amount of the Funds held by Lender at any time Is not
<br /> suff�ient to pay the Escrow Items when due, Lender may so notify Borrower tn wrkhg, and, in such case Borrower shall pay to Lender
<br /> the amount necessary to make up the deficiency. Borrower shall make up the deftciency in no more than tweNe monthy payments, at
<br /> Lender's sole discretion.
<br /> Upon payment in full of all sums secured by thts Security Instnament, Lender shall prompty refund to Borcowe� any Funds held by
<br /> Lender. If, under paragraph 21, Lender shall acquMe or sell the Property, Lender, prior to the acquiskion or sale of the Property, shall
<br /> appiy any Funds held by Lender at the time of acquiskion or sale as a credk against the sums secured by this Security Instrument.
<br /> 3. Applicatton of Payments. Unless epplicable law provides othervvise, aH peyments receNed by Lender under peragraphs
<br /> 1 and 2 shall be applied: fkst, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; thkd
<br /> to interest due; fourth, to principal due; and last, to any late charges due under the Note.
<br /> 4. Charges; Liens. Borrower shall pay all texes, assessments, charges, fines and impositlons attributable to the Property
<br /> which may attain priority over th(s Security Instrument, and leasehold payments or ground rents, H any. Borrower shall pay these
<br /> obligations in the manner provided � paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person
<br /> owed payment. Borrower shall prompty fumish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes
<br /> these payments directly, Bonower shall promptly fumish to Lender receipts evidencing the payments.
<br /> Borrower shall promptly discharge any lien which has priorky over this Security Instrument unless Borrower: (a) agrees in writing to
<br /> the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the Ilen by, or defends
<br /> against enforcement of the Uen in, legal proceedings wh�h in the Lender's opinion operate to prevent the enforcement of the lien; or (c)
<br /> secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Le�der
<br /> determines that any part of the Property is subject to a lien which may attain priority over this Securky Instrument, Lender may gNe
<br /> BoROwer a notice identifying the lien. Borrower shall satisty 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 or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or
<br /> flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender
<br /> requires. The insurance carrier providing the insurance shell be chosen by Borrower subject to Lender's approval wh�h shall not be
<br /> unreasonably withheld. It Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to
<br /> protect Lender's rights in the Property in accordance with paragraph 7.
<br /> All insurance pol(cies 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 requkes, Borrower shall promptly give to Lender all receipts ot paid premiums
<br /> and renewal notices. In the event of loss, Borrower shall give prompt notbe to the hsurance carrier and Lender. Lender may make
<br /> proof of loss 'rf not made promptty by BoROwer.
<br /> Unless Lender and Borrower otherwise agree in wrRing, Insurance proceeds shail be appl'�ed to restoration or repair of the Property
<br /> damaged, 'rf the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not
<br /> economically feasible or Lender's security would be lessened, the insurance procesds shall be applied to the sums secured by this
<br /> Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not
<br /> answer within 30 days e notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the
<br /> insurance proceeds. Lender mey 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 wiil begin when the notice is gNen.
<br /> Unless Lender and Borrower otherwise agree in wrking, any application of proceeds to principal shall not extend or postpone the
<br /> due date ot the monthly payments referced to fn paragraphs 1 and 2 or change the amount of the payments. I( under paragraph 21
<br /> the Property is acquked by Lender, BoROwer's right to any insurance polbies end proceeds resulthg hom damage to the Property prtor
<br /> to the acquisiNon shall pass to Lender to the extent of the sums secured by this Security 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 w(thin sbcty
<br /> days aRer the execution of this Security Instrument and shall continue to occupy the Property as Bonower's principal residence tor et
<br /> least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably
<br /> wkhheld, or unless extenuaNng circumstances exist which are beyond Borrower's control. Bonower shall not destroy, damage or impafr
<br /> the Property, allow the Property to deteriorate, or commft waste on the Property. Borrower shall be in defauft if any forfeiture action or
<br /> proceeding, whether civil or criminal, is begun that in Lender's good (aith judgment could resuR in forfeRure of the Property or othervvise
<br /> materially impair the lien created by this Security Instn�ment or Lenders secur(ty interest. Borrower may cure such a defauR and
<br /> reinstate, as provided in paragraph 18, by causing the actlon or proceeding to be dismissed wfth a rulfng that, in Lender's good fakh
<br /> determination, prec�des forfeiture ot the Borrowers interest fn the Property or other material impairment of the lien created by this
<br /> Security Instrument or Lender's security interest. Borrower shall elso be fn defauR ff Borrower, during the loan appiication process,
<br /> gave materially (alse or inaccurate infonnation or statements to Lender (or failed to provide Lender wfth any material in}ormation) in
<br /> connection wkh the Ioan evidenced by the Note, hc�ding, but not 16nited to, representations conceming Borcower's occupancy ot the
<br /> Property as a pr�cipal residence. If this Security Instrument is on a leasehold, Borrower shall comply wkh all the provisions of the
<br /> lease. If Borrower acquires tee title to the Property, the leasehold and the fee title shall not merge unless the Lender agrees to the
<br /> merger in writing,
<br /> Form 302e 9/YO
<br /> F7029.LM0(10/e7) Pay• 2 of b
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