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Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C.
<br />� 2601 et seq. ("RESPA"), unless another law that appties to the Funds sets e 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 estimate the emount of tunds due on the basis of current data
<br /> and �iasonable est�nates of expenditures of (uture Escrow Items or otherwise tn accordance with applicable law. �
<br /> The Funds shall be held in an instkution whose deposks are insured by a federal agency, instrumentality, or entity (hcludinp �
<br /> Lender, N Lender is such an instkution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items. `
<br /> Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verify�g the Escrow �
<br /> Items, unless Lender pays BoROwer interest on the Funds and applicable law permits Lender to make such a charge. However, Lender C,
<br /> may requKe Borrower to pay a one-time charge for an independent real estate tax reporting service used by Lender in connection wkh �
<br /> this ben, unless applicabie law provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender �
<br /> shall not be required to pay Borrower any interest or eamhgs on the Funds. Borrower and Lender may agree in writing, however, that �
<br /> interest shall be paid on the Funds. Lender shall give to Borrower, wfthout charge, an ennual accounting of the Funds, showing �
<br /> cred'Rs and debits to the Funds and the purpose for which each debft to the Funds was made. The Funds are pledged as additional
<br /> security for all sums secured by this Security Instrument.
<br /> If the Funds held by Lender exceed the amounts pem►itted to be heid by appliCable law, Lender shall eccount to BoROwer tor the
<br /> excess Funds in eccordance wkh the requirements of applicable law. I} the amount of the Funds held by Lender at any time is not
<br /> sufficient to pay the Escrow items when due, Lender may so notity Borcower in wrking, and, in such case 8orrower shall pay to Lender
<br /> the amount necessary to make up the deficiency. BoROwer shall make up the deficiency h no more than twelve monthly payments, at
<br /> Lender's sole discretion.
<br /> Upon payment h full of all sums secured by this Security Instrument, Lender shall prompty refund to BoROwer any Funds held by
<br /> Lender. If, under paragraph 21, Lender shall acquke or sell the Property, Lender, prior to the ecquisition or sale of the Property, shall
<br /> appy any Funds heid by Lender at the time of acquiskion or sale as e credft agaMst the sums secured by this Securky Instrument.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all peyments receNed by Lender under paragrsphs
<br /> 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third
<br /> to interest due; fourth, to principal due; and last, to any lete charges due under the Note.
<br /> 4. Charges; Liens. Borrower shall pay ell taxes, essessments, chsrges, fines and knposklons 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 /> obiigations in the manner provided in paregraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person
<br /> owed payment. Borrower shall promptly fumish to Lender all notices of amounts to be paid under thfs paregraph. It Borcower makes
<br /> these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments.
<br /> Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in w�Ring to
<br /> the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faRh the flen by, or defends
<br /> against enforcement of the I'�en in, legal proceedings which in the Lender's opinfon operate to prevent the enforcement of the lien; or (c)
<br /> secures from the holder of the lien an agreement satisfactory to Lender subordfnating the lien to this Security Instrument. If Lender
<br /> determines that any part of the Property is subject to a lien which may attain priorky over this SecurRy Instrument, Lender may give
<br /> Borrower a notice identffying the Ifen. Borrower shall satisty the lien or take one or more of the actions set forth above withh 10 days
<br /> of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereaiter 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. Thfs 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 Borrower subject to Lender's approval which shall not be
<br /> unreasonabiy withheld. If Borrower fails to maintain coverage described above, Lender may, at Lenders option, 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 Lender and shall include a standard mortgage clause. Lender shall have
<br /> the right to hold the policies end renewals. if Lender requkes, Borcower shall promptly give to Lender ell receipts of paid premiums
<br /> and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance canier and Lender. Lender may make
<br /> proof o} loss if not made promptly by BoROwer.
<br /> Unless Lender and Borcower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
<br /> damaged, if the restoration or repa� is economically feas�le and Lender's securky is not lessened. If the restoration or repai� is not
<br /> economically feasible or Lender's security would be lessened, the insurance proceeds shali 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 a notice from Lender that the hsurance 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 Securky
<br /> Instrument, whether or not then due. The 30-day period will begin when the notice is given.
<br /> Unless Lender and Borrower otherwise agree in writing, any application ot procseds to principal shall not extend or postpone the
<br /> due date of the monthly payments refened to in paragrephs 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 poNcfes and proceeds resufting from damage to the Property prior
<br /> to the acquisition shall pass to Lender to the wctent of the sums secured by thls Securiry Instrument knmediately prior to the
<br /> acquisition.
<br /> 6. Occupancy, Preservation, FAaintenance and Protection of the Property; Borrower's �oan
<br /> Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sbcty
<br /> days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal resldence for at
<br /> least one year after the date o( occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably
<br /> withheld, or unless eMenuating circumstances exist which are beyond Borrower's control. Borrower shail not destroy, damage or impair
<br /> the Property, allow the Property to deteriorate, or commR waste on the Property. Borrower shall be in de(auft i( any forfeiture action or
<br /> proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could resuR in forfeRure of the Property or otherwise
<br /> materially impaK the lien created by this Security Instrument or Lender's securky interest. Borrower may cure such a detault and
<br /> reinstate, as provided in paragraph 18, by causing the action or proceeding to be dfsmissed wkh a ruting that, in Lender's good faRh
<br /> determination, precludes forfeiture of the Borrower's interest in the Property or other materiel impahment of the Uen created by this
<br /> Securky Inshument or Lenders security interest. Borrower shall also be in defauft N Borrower, during the loan application process,
<br /> gave materially talse or haccurate information or statements to Lender (or failed to provide Lender wkh any material informatbn) in
<br /> connection wfth the loan evidenced by the Note, including, but not limited to, representatbns conceming Borcower's occupency of the
<br /> Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall compy with all the provisions of the
<br /> lease. If Borrower acqui�es fee 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.LM0(10/97) Paps 2 of 5
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