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<br />Upen payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Burrower any Funds held
<br />by Lender, If under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall
<br />apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs I
<br />and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to
<br />interest payable on the Note, and then to the principal of the Note.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which
<br />may attain priority over this Security Instrument, and leasehold payments or ground rens, if any Borrower shall pay these obligations in
<br />the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment.
<br />Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments
<br />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
<br />writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or
<br />defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien;
<br />or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument If Lender
<br />determines that any part of the Property is subject to a lien which may attain priurity over this Security Instrument, Lender may give
<br />Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or mora of the actions set forth above within 10 days of
<br />the giving of notice.
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for
<br />which Lender requires insurance. this insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by; Borrower subject to Lender's approval which shall not be unreasonably
<br />withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's
<br />rights in the Property in accordance with paragraph 7.
<br />All insurance policies and renewal shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall
<br />have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums
<br />and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof
<br />of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the
<br />Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened, If the restoration or repair is
<br />not economically feasible or Lender's security would be lessened, the insurance proceeds shall 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 answer
<br />within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance
<br />proceeds. Lender may use the proceeds to repair or restore the Property to pay sums secured by this Security Instrument, whether or not
<br />then due. The 30 -day period will begin when the notice is given.
<br />Unless Lender arid Burrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the
<br />due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If damage to the Property
<br />prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the
<br />acquisition.
<br />6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds,
<br />Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower
<br />shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that Lender's good faith judgment could result
<br />in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest.
<br />Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a
<br />ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or material impairment of
<br />the lien created by this Security Instrument or false inaccurate information or statements to Lender (or failed to provide Lender with any
<br />material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning
<br />Borrowerk occupancy of the Property as a Principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with
<br />all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender
<br />agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in this
<br />Security Instrument, 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 forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is
<br />necessary to protect the value or the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured
<br />by a lien which has priority over this Security Instruments, appearing in court, paying reasonable attorney's fees and entering on the
<br />Property to make 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 Lender to Borrower
<br />requesting payment.
<br />8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security
<br />Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage
<br />insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage
<br />substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to one -twelfth of the yearly
<br />mortgage insurance Premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept,
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<br />Order: FSST-TO16000835 Doc: CASANJ:2007 00123010 Page 2 of 10 Created By: tullybob Printed: 3/21/2016 9:46:40 AM PST
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