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Borrower's escrow account under the federai Reai Estate Settlement Procedures Act of 1974 as amended }rom time to time, 12 U.S.C.
<br /> 2601 et seq. ("RESPA"), unless another law that applies to the Funds sets a lesser amount. �f so, Lender may, at any time, collect and
<br /> hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of funds due on the basis of cuRent data �
<br /> and rea�sonable estimates of expenditures of future Escrow Items or othervvise in accordance wfth eppiicable law. �
<br /> b The Funds shall be held in an institution whose deposits are k�sured by a federal agency, instrumentality, or entky (including '
<br /> Lender, 'rf Lender is such an institution) or m any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow �tems.
<br /> Lender may not charge BoROwer for holding and applying the Funds, annuaily analyzing 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 requke Borrower to pay a one-tkne charge for an independent real estate tax reporting service used by Lender in connection with �
<br /> this loan, unless applicable Iaw provides otherwise. Unless an agreement is made or applicable law requkes interest to be paid, Lender �
<br /> shall not be required to pay Borrower eny interest or eamings on the Funds. Borrower and Lender may agree in wrking, however, that �
<br /> interest shail be paid on the Funds. Lender shall gNe to Borrower, wkhout charge, an annual accounting of the Funds, showing
<br /> credks and debks to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as addkional
<br /> security tor all sums secured by this Security Instrument.
<br /> If the Funds held by Lender exceed the amounts peRnitted to be held by applicable law, Lender shall account to Borrower for the
<br /> excess Funds in accordance with the requirements of eppiicable law. If the amount of the Funds heid by Lender at any time is not
<br /> sufficient to pay the Escrow Items when due, Lender may so notily Borrow� in wr(dng, and, fn such case Borrower shatl pay to Lender
<br /> the amount necessary to make up the defkiency. Bonower shall make up the defbiency in no more than twelve monthy payments, at
<br /> Lenders sole discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shell promptly refund to Borrower any Funds held by
<br /> Lender. Ii, under paragraph 21, Lender shall acquke or sell the Property, Lender, prior to the acquisftion or sale oi the Property, shall
<br /> appy any Funds held by Lender at the time of acquiskion or sale as a credR egahst the sums secured by this Security instrument.
<br /> 3. Application of Payments. Unless appl�able law provides otherwise, all payments receNed by Lender under paragrephs
<br /> 1 and 2 shall be applied: first, 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 taxes, assessments, charges, fines and Imposftions attributable to the Property
<br /> which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these
<br /> obligations in the manner provided in peragraph 2, or 'rf not paid in that manner, Borrower shali pay them on time directly to the person
<br /> owed payment. Borrower shall prompty (umish to Lender all notices ot amounts to be pa(d under this paragraph. if Borrower makes
<br /> these payments directly, Borrower shall promptly fumish to Lender receipts evidencing the payments.
<br /> Borrower shall promptly discharge any lien which has priority over this SeCUrky Instrument unless Borrower: (a) agrees in writing to
<br /> the payment o} the obligation secured by the lien in a manner acceptable to Lender; (b) contests fn good fakh the Ilen by, or defends
<br /> against enforcement of the lien in, legal proceedings whfch in the Lender's opinion operate to prevent the enforcement of the Ilen; or (c)
<br /> secures from the holder of the lien an agreement satisfactory to Lender subordinating the Hen to this Security Instrument. If Lender
<br /> determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give
<br /> Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or mo�e 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 i
<br /> Property insured against loss by fire, hazards included wkhin the term "extended coverage" and any other hazards, including floods or II
<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 shall be chosen by Borcower subject to Lender's approval which shail not be
<br /> unreasonabty withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's opNon, obtain coverage to
<br /> protect Lender's rights in the Property in accordance with paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lende� and shall include a standard mortgage clause. Lender shall have
<br /> the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premlums
<br /> and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make
<br /> proof of loss if not made promptly by BoROwer.
<br /> Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repai� of the Property
<br /> damaged, ff 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 Lenders security would be lessened, the insurance proceeds shall be applied to the sums secu�ed by this
<br /> Security Instrument, whether or not then due, with any excess paid to Bonower. If Borrower abandons the Property, or does not
<br /> answer within 30 days a notice from 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 repaM 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 is given.
<br /> Unless Lender and Bonower otherwise agree in wrking, any appUcation of proceeds to principal shail not extend or postpone the
<br /> due date of the monthly payments referred to � 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 pol�ies and proceeds resulting from damage to the Property prior
<br /> • to the acquisition shall pass to Lender to the eMent of the sums secured by this Security Instrument immedietely prior to the
<br /> acquiskion.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br /> Application; LeBS@hOIdS. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty
<br /> days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at
<br /> least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably
<br /> withheld, or unless extenuating circumstances exist which are beyond Borrower's control. BoROwer shall not destroy, damage or impair
<br /> the Property, allow the Property to deteriorate, or commk waste on the Property. Borrower shall be in default H eny foriefture actfon or
<br /> proceeding, whether civil or criminal, is begun that in Lender's good faRh judgment could resuft fn foriekure of the Property or othervvise
<br /> materialfy �npaK the lien created by this Security Instrument or Lender's security interest. Bonower 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 fakh
<br /> determination, precludes (orteiture of the Borrower's interest in the Property or other material impairment of the lien created by this
<br /> Security Instrument or Lender's security interest. Borrower shall also be in default ff Borrower, during the loan application process,
<br /> gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in
<br /> connection with the loan evidenced by the Note, including, but not limited to, representations conceming Bonower's occupancy of the
<br /> Property as a principai residence. If this Securky Instrument is on a leasehold, Borrower shall comply with all the provisions of the
<br /> lease. If Borrower acquires (ee title to the Property, the leasehold and the fee tkle shall not merge unless the Lender agrees to the
<br /> merger in writing.
<br /> Form 3028 9/90
<br /> F1029.LMO(10/97) Pags 2 of 5
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