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I'hc I wi�k sh;dl hr hrld in an inslilulion wh��sc dcposils ,irc insinrd hy ;i tidcr.d ,i�cnry, inslrumcnt,ilil��. ��r cnlily
<br /> (inrhidin� I.cn�lcr. if Lrn�lcr is surh an inslittnii�nl ur in;iny I�cdcral Ilinnc L�cui liank. Lrn�lcr shall ap�d��Ihc I�unJ�li��,ay Ihr
<br /> � Fsc•rmc Ilcros. I.cndcr may not chargc 13orrowcr for holJing and applyink ihc I�unds,annually an.dyzing thc cscm�v accuunL i�r
<br /> vcrilj'ing thc liscruw Ilcros,unlcss I.cndcr pays l3urmwcr inlcrest on thc Punds and applic:ihlc la�v pcnnitti I.cnJcr lii m,ikc such �
<br /> �- a ch,irge. Ilo���ever, Ixnder may reyuire Borrower to pay a one-time charge tor mi independent re;d eslate tax repurling scrvice�
<br /> usrd hy Lender in cunnecliun with Ihis loan, unless applicable law provides otherwise. Unless an agreemenl i� made or f
<br /> arplicahlc law rcyuires inlcrest tu bc paid, Lcndcr shall not bc requircd to pay f3orrowcr any in�crctit or carnings on lhc Fwids.
<br /> Rorrrnvcr anJ Lcnder may agrce in wri�ing, howcver, that interest shall be paid on the �unds. Lendcr shall givc to f3<�rrowrr, �
<br /> withuut charge, an annual accounting of the Funds, showing credits and dcbits to Ihe Funds and the purpose for which each
<br /> debit to the funJs was made.T'he Punds are pledged as additional security for all sums secured by this Security Inslrwncnl. r
<br /> If Ihc Fwids hcld by Lender excccd thc amounls Ex:rmiUcd tn hc held by apnlicablc I;iw, I endcr shall ;iccnum in R��rm�vcr w
<br /> li�r Ihe excesx Punds in accordance willi thc rcyuirements of applicablc law. If tlie amounl ol'Ihe Funds hcld hy Lender at any �y
<br /> limc is not sufficicnl lu pay thc Gscruw Ilcmx whcn duc, L.cndcr may so notify f3orrowcr in wriling.:uid, in tiuch catic 13orruwcr �
<br /> shall pay to Lender the amount necessary tc�make up the deficiency. Borcower shall make up lhe deficiency in no more than
<br /> �wclve monthly payments,at Lender's sole discretion. �
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall pmmptly refund to Bc,rrower any
<br /> Funds held by Lender. If,under paragraph 21, Lender shall acyuire or sell Ihe Property,Lendcr,prior to Ihe acyuisilion or salc
<br /> of the Property, shall�pply any Funds held by I.ender at the time of acquisition or sale as a credit against Ihe sums secured hy
<br /> this Security lnstrument.
<br /> 3.Application uf Payments.Unless applicable law provides otherwise,atl payments receivcd by Lender under parngraphs
<br /> I and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2;
<br /> lhird,to interest due; four�h,to principal due;and last,to any late charges due under the Note.
<br /> 4. Charges; I,iens. Borrowcr shall pay all taxes,assessmenls, charges, fines and impositions attributable to thc Property
<br /> which may attain priority ovcr lhis Sccurity Instrument, and leasehold payments or ground rents, if any. Borrower shall pay
<br /> thesc obligations in thc manner provided in parngrnph 2,or if not paid in that manner, Borrowcr shall p��y them on timc dircctly
<br /> to thc person owed payment. Borrower shall promptly furnish to L.ender all notices of amounts to be paid undcr Ihis paragraph.
<br /> If Borrower makes these payments direcdy,Borrower shall prompUy furnish to Lender reccipts evidencing the paymenls.
<br /> Borro�cer shall pn,mplly discharge any lien which has prioriry over this Securily Intlrumenl unlesx f3orrnwer: la)agrees in
<br /> writing lo the payment of the��hligali�m secureJ h}�thc lien in a manner.:cccplablc lo Lcnder: (b)couies�s in Eood L•iilh thc licn
<br /> by, or defends against enforcement of the lien in, legal proceedings which in Ihe Lender's opinion operale to prevent Ihc
<br /> enforcement of the lien;nr(c)secures from the holder of the lien an agrcemenl salisfaclory lo Lender suh��rdinaung Ihe Gen tu
<br /> Ihis Sccurity InslrutnenL If Lendcr dclennines Ihat any part of the Proper�y is suhjecl to a licn which may atlain priority ovcr
<br /> Ihis Security Instrumenl, Lender may give Borrower a notice identifying lhe lien. 13orrower shall s�lisfy the licn nr lake�me��r
<br /> m�,re of the actions set forth above within Ib days of the giving of notice.
<br /> 5. Hnzard nr Properly 6isurance. Borrower shall keep Ihe imprc�vemcnts now existinF or hereaftcr erecicd �m ihc
<br /> Property insurcd against loss by fire, hazards included within the Ienn "exlended cover.�ge" and any olher h.ir:uds, includin�
<br /> flnods or Ilooding, for which Lender reyuires insurnuce. This insurance shall be mainlained in Ihc amounts and fur Ihc�,criods
<br /> Ihal Lender reyuires. 'Phe insurance carrier providing the insurance shall he chosen by Ilorruwer subject to Lender's.yiprnval
<br /> ahich s6all nol hc unrea�onahly wilhhclJ. If Born�wcr fails to m:iintain c�ivcragc dcscribcd ahovc. I.cndcr may. :rt Lcndcr's
<br /> opiion,ublain cuvcragc tii protccl Lcndcr's righls in lhc Properly in accorJancc wilh paragraph 7.
<br /> All insurance pulicics and renewals shal� be acceptablc to L.ender and shall incluJe a standard morlga�c clause. Lcndcr
<br /> shall have the righl to hold the policics and renewals. If Lender reyuires,BorruN�er shall prumptly givc lo Lcndcr adl rcccipls of
<br /> p.iid prcmiums and renewal nutices. In the event of loss, Borrower shall give prompt notice to the insurance c.irrier and LenJer.
<br /> Lendcr may m,ike prouf of loss if not nwJe prompdy by Borrower.
<br /> Unless LenJer and Borrower otherwise agree in writing, insurance proceeds shall bc ahplicd to re�loralion ur repair c�f thc
<br /> Pmperly damaged,if the reslor:ition or repair is economically feasible and Lender's sccurity is not lesscncd. If thc restor:itioii i,r
<br /> repair is nol economically feasiMe or Lender's securily would be lessened, the insurance proceeds sh.dl bc applicd to Ihe sums
<br /> secured hy this Security lnstrument, whether or not then due, with any excess paid lo Borrower. If Rorrower ahandons Ihe
<br /> Properly. or d��es nol answcr wilhin.l0 days a noticc from Lender Ihat the insurance c:urier h;is offercd to ticltic:�claim, thcn
<br /> Lender may cullect Ihe insurance procecds. Lender may use Ihe prucecds to repair or restore the Properry �ir lo pay sumti
<br /> secwed hy this Security Instrtunent, whether ar nat lhen due.The 30-day period will begin when Ihe nolice is�iven.
<br /> Unlrss Lcndcr ancl f3orrowcr olhcrwisc agrcc in wriling, any application uf procccJti t�� prinrip:d shall nul cxlcnil i�r
<br /> ��,����,�,� a,� due Ja1e of the monthly payments referred to in paragr:�phs I ancl 2 or changc�he .imount ul'Ihe payments. If
<br /> unJer paragraph 21 the Property is acyuired by Lender, I3orrower's right to any insurance policies and pn�cecds resuhing fmm
<br /> d,image u�(he Property priur to the acyuisition shall pass to Lender to the extent of the sums secured hy Ihis Sccurity lus(rumenl
<br /> inuncdiatcly prior to Ihc acyuisilion.
<br /> G. Occup�ncy, Prescrvalion, Iblaintcn�ncc and Prntection of lhc 1'roperfy; Burrnwcr's Loan Application: I.cascholds.
<br /> Burmw-er shall occupy,establish,and use the Property as Borrower's principal residence within sixly days af�cr the execution uf
<br /> Ihis Sa�urity Dulrumcnt and shall cunlinuc lo occupy Ihc Properly ati Borr<�wcr's princip:d residcncc fnr.il Icas� nnc ycar aPlcr
<br /> Ihe dale of occupanc�, unless Lender ulherwise agrees in writing, which consent shall not be unreasonahly wi�hheld, or unless
<br /> extenuating circumslances exist which are beyoncl 13orrower's control. Borrower shall not destroy, damage or impair the
<br /> Pn,perty. :dlow the Properry lo deteriorate, or commit waste on the Property. Borrower shall bc in def.iult if any fcxfciture
<br /> action or procecding, whether civil or criminal, is begun that in Lender's good faith judgment could result ;n fimlci�ure uf Ihe
<br /> Property nr oU�cnvisc matcrially inipair the lien crealeJ by this Security Instrun,cn!or Lendcr's s;curit}'i,ucrest. Dunuw�r in.�y
<br /> nire vuch a de�,ult.u;el reinstate,as pru;�idcd in par,igraph 18.by cuusiug the actiun ur pri�ceeding lo he dismistie�i wiih a ruling
<br /> � th:u, in Lender's good failh Jeterminalinn, prccludes forfeilure of Ihe Borrower's interest in Ihc Property ur other nuderinl
<br /> impairmenl of Ihe lien crented by Ihis Security Instrument or Lender's security interesl. Borrower shall :ils�� be in default if
<br /> Horrowcr,during Ihc luan application proccss,gavc materially falsc or innccur�tc infunnation or slatcmcnls lo Lcndcr(or L•iilcd
<br /> to provide Lender wilh any material infonnation)in c�mneclion with the loan evidencecl by the N��tc, including. hut nut IimilcJ
<br /> to, representations concerning l3orrower's occupancy of the Property as a principal residence. If this Security Ins(rument is on a
<br /> Icasehold, Borrower sh:dl comply with all the provisions of the lease. ff Borrower acyuires fce IiUe lo Ihe Properly, thc
<br /> Icaschold and the fee tille shall not merge unless Lender agrces to the mcrgcr in writing.
<br /> 7.Protecliun of I,ender's Rights in the I'roperty.lf Borrower fails to perform Ihe covenants and agreementc conlained in
<br /> Ihis Security Instrument, or Ihere is a legal proceeding that may significanlly a1'fect Lender's ri�hts in the Pruperry (such a.ti;i
<br /> rmceeding in bnnkruptcy, prohate, for condemnation or forfeiture or to enfnrce laws or regulations), then I.ender may do and
<br /> pay li�r whatever is necessary to protect the value of the Property and Lender's riglus in the Properly. Lcnder's aclions may
<br /> include paying any sums secured by a lien which has priority over this Security Instrwnenl, appearing in court, p.iying
<br /> rcason.ihlc alt��mcys' fecs and entering on the Property to make repairs. A�though Lender may t.�ke action undcr Ihis p;iragr:�ph
<br /> 7. I,cndcr d�ict nol havc I�i do so.
<br /> Any am��uniti dishursed by I.ender under this parugraph 7 shall bec�,me addiliunal dcbl uf Bnrruwe�sectr�: •
<br /> Srcurity Inshumcnt. Unless Borco�ver and Lcndcr agrec to other terms of � ment, lhese am�,untx shall hcar inlcr�t�fiimi�tl�J
<br /> Jnlc of dishurscment at the Note ra�e and shall bc � �hle, wi(h inlerestr u�xm noticc from Lender lo I3orrowcr rcyuesting
<br /> � ment. p•y
<br /> r•y�
<br /> . • S. �tortKage Insur:mce. If Lender rcyuircd mortgage insurance as a condiliun of making Ihc luan secured by lhis Securily
<br /> Instrununl. E3orrower shall pay thc premiums reyuired to maintain the morlgagc insurance in cffccL If. liir any rcason. �hc
<br /> morlgage insurance coverage reyuired by Lender lapses or ceases to l�e in effecl, I3orrower shall pay the premiumx rcyuireJ lo
<br /> , ohtain cuveroge substantially equivalent to the mortgage insurance previously in ef7ect, at a cost subtitanli:illy eyuivalent to thc
<br /> cost to Borrower of the mortgage insurance previously in effect, from an alternale mortgage insurer approvcd hy Lender. If
<br /> � ' �
<br /> P'"�'�° Form 3028 9/90
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