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. Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as emended from time to time, 12 U.S.C.
<br /> 2601 et seq. ('RE3PA"), unless another law that appUes to the Funda aets a lesser amount. If so, Lender may, at any Nme, collect and
<br /> hold Funds iA an amount not to exceed the lesser amount. Lender may esUmete the amount of iunds due on the basis of current deta (�
<br /> and�easonable estimates of expe�ditures oi future Escrow Items or otherwiae In ac�ordance wfth applicable lew. QO�
<br /> The Funds shall be held in an instftutfon whose deposks are insured by a federal agency, instrumentality, or entity (induding �
<br /> Lender, H Lender is such an institution) or in eny Federel Home Loen Bank. Lender shall epply the Funda to pay the Escrow ftema. C.�„�
<br /> Lender may not charge Borrower tor holding end applying the Funds, annually analyzing the escrow account, or v�ifying the Escrow W
<br /> Items, unless Lender pays Borrowe� Interest on the Funds and epplicable lew permfts Lender to meke such a cherge. However, Lender 4
<br /> may require Borrower to pay a one-time charge tor an independent real estate ta�c reporting service used by Lender in connection with �
<br /> thfs loan, unless applicabie law provides otherwise. Unless an agreement is made or eppitcable law requires interest to be paid, Lender�
<br /> shall not be req�ired to pay BoROwer any Interest or eamings on the Funds. Borrower end Lender mey egree In wiiting, however, that
<br /> Interest shall be paid on the Funds. Lender shall gHe to Borrower, wfthout charge, an annual accounting of the Funds, showing
<br /> credfts and debits to the Funds and the purpose tor which each debft to the Funds was made. The Funds are pledged es addiUonal
<br /> securriy for sll sums secured by this Security Instrument.
<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 /> excess Funds in accordance wfth the requireme�ts of appliceble law. If the amount ot the Funds held by Lender at any time la not
<br /> sutfldent to pay the Escrow Items when due, Lender may so notify Bo�rower in writing, and, in such caae Borrower ahell pay to Lender
<br /> the amount neceasary to make up the defldency. Borrower shell make up the deflciency in no more than tweMe monthly paymenta, at
<br /> Lender's sole discretlon. .
<br /> Upon payment in full of all aums aecured by this Security Instrument, Lender shall prompUy reiund to Botrower any Funda held by
<br /> Lender. If, under paragreph 21, Lender shall acquire or sell the Property, Lender, prior to the acqulsiGon or aale of the Property, aheM
<br /> apply any Funds held by Lender at the time of acquisition or sale ea a credft sgsinst tha auma aecured by thla 3ecurMy Inatrument
<br /> 3. AppllCation of Payments. Unleas appliceble law provides othervvise, ell peymenta receNed by Lender under paregrapha
<br /> 1 and 2 shatl be applled: flrst, to any prepayment charges due under the Note; second, to amounts payable under paregraph 2; third
<br /> to interest due; tourth, to principal due; and last, to any late charges due under the Note.
<br /> 4. Charges; Liens. BoROwer shall pay all texes, assessments, chargea, flnes end imposftions attributable to the Property
<br /> which may attatn priority over this Security Instrument, end leasehold payments or ground rents, if eny. Bonower shall pay these
<br /> obligatlons In the manner provided in paragraph 2, or N not paid In that manner, Borrower shall pay them on time directy to the person
<br /> owed payment. BoROwer shall prompty fumish to Lender ell notices of amounts to be paid under this paragraph. If Borrower mekes
<br /> these payments directy, BoROwer 'shall promptly iumtsh to Le�der recelpts evldencing the payments.
<br /> Borrower shall promptly dtscharge any Ilen which has prlority over this Security Instrument unless Borrower. (a) agrees in writing to
<br /> the peyment of the obligatlon secured by the Ilen in a manner acceptable to Lender; (b) contests in good fafth the Ilen by, or defends
<br /> agefnst eniorcement oi the lien In, legal proceedings which in the Lender's opinion operete to prevent the enforcement of the Ilen; or (c)
<br /> secures from the holder of the Ilen an agreement satisfactory to Lender subordinating the Ilen to thls Security Inatrument. If Lender
<br /> detertnines that eny part oi the Propery is subJect to a Ilen which mey attein prlorhy over this Security Instrument, Lender may gNe
<br /> Borrower a notfce IdenUtying the Ilen. Borrower shall sadsiy the Uen or take one or more of the actions set tonh above within 10 days
<br /> of the gNing of notice.
<br /> 5. Hazard or PrOperty InsuranCe. Borrower shall keep the Improvements now existing or hereafter e�ected on the
<br /> Property insured against loss by fire, hazards included within the term "extended coverege" and any other hazards, including floods or
<br /> flooding, for which Lender requires insurence. This insurance shall be maintained ln the amounts and for the periods that Lender
<br /> requires. The insurance cerrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br /> unreasonabty withheld. If Borrower faiis to maintafn coverage described above, Lender may, at Lender's option, obtein coverage to
<br /> protect Lender's rights tn the Property In accordance wfth peragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shali have
<br /> the �ight to hold the poUcies and renewals. If Lender requires, Botrower shall promptly give to Lender all receipts of peid premiums
<br /> end renewal notices. In the event oi loss, Borrower shall give prompt notice to the insurence carrier and lender. Lender may malce
<br /> prooi ot loss ii not made prompty by Borrower.
<br /> Unless Lender and BoROwer otherwise agree in writing, insurance proceeds shall be applied to restoration or repalr of the Property
<br /> demaged, H the restoratfo� or repair is economicelly teasible end Lender's security is not lessened. li the restoration or repeir is not
<br /> economically feasible or Lender's security would be lessened, the Insursnce proceeds shall be eppl(ed to the sums secured by thfa
<br /> Security Instrument, whether or not then due, with any excess paid to Borrower. Ii Borrower abandons the Property, or does not
<br /> answer within 30 days a notice irom Le�der that the inaurence carrier has oHered to settle a claim, then Lender may collect the
<br /> insurance proceeds. Lender may use the proceeds to repelr or restore the Property or to pay sums secured by this 3ecurity
<br /> Instrument, whether or not then due. The 30-day period will begin when the notice Is given.
<br /> Unless Lender and BoROwer othervvise agree in writing, sny applicatlon of proceeds to principal shall not extend or postpone the
<br /> due date oi the monthly payments referred to in paragraphs 1 and 2 or phange the amount of the payments. If under paragraph 21
<br /> the Property Is acquired by Lender, Borrower's right to any Insurance policles and proceeds resulting from damage to the Property prior
<br /> to the acquisftion shall pass to Lender to the extent of the sums secured by this Security Instrument immedlately ptior to the
<br /> acquisftion.
<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 princ(pal residence wfthin sixty
<br /> days after the execuUon of this Securiry Instrument and shall continue to occupy the Property as Borrower's principal residence tor 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 cfrcumstances exist which are beyond Bor�ower's control. Borrower shall not destroy, damage or impair
<br /> the Prope�iy, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in defauft if eny forfeiture actlon or
<br /> proceeding, whether civN or aiminal, is begun that in Lender's good taith Judgment could resuft In forfeiture of the Properly or otherwise
<br /> materially Impair the Ilen created by this Security Instrument or Lender's security interest. Bor�ower may cure such a defauft and
<br /> reinstate, as provided In paregraph 18, by causing the action or proceeding fo be dismissed wfth a ruling that, in Lender's good fefth
<br /> determination, precludes forfefture of the BoROwer's interest in the Property or other material impairment of the Ilen created by this
<br /> 3ecurity Instrument or Lender's security Interest. BoROwer shell also be Jn defauft ff BoROwer, du�ing the loan appllcation process,
<br /> gave meterialy talse or inaccurate Inforn�aUon or statements to l.end� (or failed to provide Lendw with any material Infortnatlon) in
<br /> cbnnectlon with the loen evidenced by the Note, including, but not Iknited to, representetions conceming Borrower's occupancy of the
<br /> Property as a principal residence. If this Security Instrument Is on a leasehold, Borrower shaA comply with all the provisiona of the
<br /> lease. If Borrower acquires fee title to the Property, the I�sehold and the tee tittle shall not merge unless the Lender agrees to the
<br /> merg�in writi�g.
<br /> Form 3028 9/90
<br /> F1029.LMO (10�9� Pege 2 of 5
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