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Laan No. 05-980221 "�+' �+�3U42
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<br /> � If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to Borrower for the
<br /> e:�cess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time is not sufficient
<br /> to pay the Escrow Items when due, Lender may so notifjr Borrower in writing, and, in such case Borrower shall pay to Lender the amount
<br /> necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve monthly payments, at Lender's sole
<br /> discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by
<br /> Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender,prior to the acquisition or sale oi the Property, shall apply
<br /> any Funds held by Lender at the time oi acquisition or sale as a credit against the sums secured by this Security InsVUment.
<br /> 3.ApplicaUon of Payments. Unless applicable law provides othervvise, all payments received by Lender under paragraphs 1 and
<br /> 2 shall be applied: Tirst, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2;third,to interest
<br /> due;fourth,to principal due;and last,to any late charges due under the Note.
<br /> 4.Charges;Uens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which
<br /> may attain priority over this Secu�ity Instrument, and leasehold payments or ground rents,if any. Borcower shall pay these obligaUons in the
<br /> manner prowded in paragraph 2, or if not paid in that manner, Borrower shali pay them on bme directly to the person owed payment.
<br /> Borrower shall prompUy furnish to Lender all no�ces of amounts to be paid under this paragraph. If Borrower mekes these payments directly,
<br /> BoROwer shall prompUy furnish to Lender receipts evidencing the payments.
<br /> BoROwer shali prompUy discharge any lien which has priority over this Security InsVument unless Borrower: (a) agrees In writlng to
<br /> the payment oT the obligation secured by the lien in a mat►ner acceptable to Lender;(b)contests in good fafth the Ilen by,or defends against
<br /> enforcement ot the lien in,legal proceedings which(n the Lender's opinion operate to prevent the enforcement of the Ilen;or(c)aecures from
<br /> the holder of the lien an a ree
<br /> ment saUsfacto to
<br /> 9 ry Lender subordinatlng the Ilen to this Security Instrument. If Lender determines that any
<br /> part of the Properly is subj�to a Ifen which may attain priority over this Security Instrument, Lender mey give Borrower a noUce IdentHying
<br /> the Ifen. Borrower shall saUs the lien or take one or more of tfie actlons set forth above within 10 days of the giving of noUce.
<br /> 5.Hazard or Property Insurance. Borrower shell keep the improvements now existing or hereafter erected on the Property insured
<br /> agalnst loss by fire, hazards included within the term"extended coverage" and any other hazards, including floods or flooding, for which
<br /> Lender requires insurance. This insurance shall be maintained tn the airiounts and for the periods that Lender requires. The insurance car-
<br /> �ier providing the insurance shali be chosen by Borrower subiect to Lender's approval which shall not be unreasonably wfthheld. If Borrower
<br /> fails to mainta�n coverage described above, Lender may,at Lenders optlon,obtain coverage to protect Lender's Hghb in the Property in ac-
<br /> cordance 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 and renewals. If Lender requires, Borrower shall promptly give to Lender ell receipts of paid premiums and
<br /> renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carner and Lender. Lender may make proof of loss
<br /> if not made promptly by BoROwer.
<br /> Unless Lender and Borrower othervvise a�ree in writing, insurance proceeds shall be applied 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 secu�ity would be lessened,the insurance proceeds shall be applied to the sums secured by this Security
<br /> Instrument,whether or not then due, witf� any excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30
<br /> days a notice from Lender that the insurance carrier has offered to settle a claim,then Lender may collect the insurance proceeds. Lender
<br /> may use the proceeds to repair or restore the Property or to pay sums secured by this Security InsVument, whether or not then due. The
<br /> 30-day period will begin when the notice is given.
<br /> Unless Lender and Borrower othervvise agree in writing,any application of proceeds to principal shall not eMend or postpone the due
<br /> date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the Property
<br /> is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisitlon
<br /> shall pass to Lender to the extent of the sums secured by this Security InsVument immediately prior to the acquisiGon.
<br /> 6. Occupancy,PreservaUon,Malntenance and ProtecUon of the Property;Borrower's Loan AppllcaUon;Leaseholds. Borrower
<br /> shall occupy,establish,and use the Property as Borrower's principal residence within sixty days after the execution of this Security Instrument
<br /> and shall contlnue to occupy the Property as Borrowe�'s principal resldence for at least one year after the date of occupancy,unless Lender �
<br /> otherwise agrees in wriUng,which consent shall not be unreasonably withheld,or unless extenuatlng circumstances exist which are beyond
<br /> Bonower's conVol. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the
<br /> Property. BoROwer shall be in defauft if any forteiture actlon or proceeding, whether civ11 or criminai, is �un that in Lender's good faith
<br /> judgment could result in forteiture of the Property or otherwise materially impair the lien created by this ecurity Instrument or Lender's
<br /> security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be
<br /> dismissed with a ruling that, in Lender's good faith determination, precludes forteiture of the Borrower's interest in the Property or other
<br /> material impairment oi the lien created by tF�is Security Instrument or Lender's security interest. Borrower shall also be In default if Borrower,
<br /> during the loan application process,yave materially felse or fnaccurate information or statements to Lender(or failed to provide Lender wfth
<br /> any materfal informatlon) in connecUon with the loan evidenced by the Note, including, but not limited to, representat(ons concerning
<br /> Borrower's occupancy oi the Property as a principal residence. If this Securlty Instrument is on a leasehold, Borrower shall comply with alf
<br /> the provisions of the lease. If BoROwer acquires fee Utle to the Property,the leasehold and the fee title shail not merge unless Lender agrees
<br /> to the merger in writing.
<br /> 7.ProtecUon of Lender's Rlghts In the Properly. If Borrower fails to peKorm the covenants and agreements contained in this
<br /> Security InsVument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in
<br /> bankruptcy, probate,for condemnation or forteiture or to enforce laws or regulations),then Lender may do and pay for whatever is necessary
<br /> to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien
<br /> which has prioriry over this Security Instrument, appearing in court, paying reasonable attorneys'fees and entering on the Property to make
<br /> repairs. Although Lender may take action under this paragraph 7,Lender does not have to do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security
<br /> Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement
<br /> at the Note rate and shall be payable,with interest,upon notice from Lender to BoROwer requesting payment.
<br /> 8.Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security
<br /> InsVument, Borrower shall pay the premiums required to maintaln the mortgage insurance in effect. If, for any reason, the mortgage in-
<br /> surance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage sub-
<br /> stantially equivaient to the mortgage insurance previously in eifect, at a cost substantially equivalent to the cost to Borrower of the mortgage
<br /> insurance previousl� in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance
<br /> coverage is not ava�lable, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premium
<br /> being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as
<br /> a loss reserve in lieu of mortgage Insurance. Loss reserve payments may no longer be required, at the optlon of Lender, ii mortgege in-
<br /> surance coverage(in the amount and for the period that Lender requires)provided by an insurer approved by Lender agafn becomes avail-
<br /> able and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect,or to provide a loss reserve, until
<br /> the requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or applicable law.
<br /> 9.Inspectlon. Lender or its agent may make reasonable entries upon and inspectlons of the Property. Lender shall give Bonower
<br /> notice at the time of or prior to an inspectlon specifying reasonable cause for the inspectlon.
<br /> 10.CondemnaUon. The proceeds of any award or cla(m for damages, direct or consequential,in connection with any condemna-
<br /> Uon or other taking of any part of the Property,or for conveyance in lieu of condemnaUon,are hereby assigned and shell be pald to Lender.
<br /> In the event of a total taking of the Property,the proceeds shall be applied to the sums secured by this Securit�Instrument,whether
<br /> or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in which the fa�r merket value of the
<br /> Property immediately before the taking is equal to or greater than the amount af the sums secured by this Security Instrument immediately
<br /> before the taking, unless Borrower and Lender otherwise agree in writing,the sums secured by this Security Instrument shall be reduced by
<br /> the amount of the proceeds multlplied by the following fraction: (a) the total amount of the sums secured imrriediately before the taking,
<br /> divided bY(b)the fair market value of the Property imrnediately before the taking. Any balance shall be paid to BoROwer. In the event of a
<br /> partial taking of the Property in which the fai�market value of the Property imrr�diately before the taking is less than the amount of the sums
<br /> secured immediately before the taking, unless Borrower and Lender othervvise agree in writlng or unlessap plicable law otherwlse provides,
<br /> the proceeds shall be applied to the sums secured by thls Security Instrument whether or not the sums are then due.
<br /> FORII 302$ 9/80 (pays 2 of 4 papaa)
<br /> Initials � /�L- � ��
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