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<br /> f,}NIFOI�M CC3V£NAN'�'S. �urcr��v�r av�c� Lcnder �ovenant a:�d agree 2�s fallows: � w�en due
<br /> x#� 1r�f�r+�/�rMt ��I w�r►+t �n��+rrM� �r+ thr► �,�kx �vrd�»�u.d k+Y ti� t�ia+e �rY�eC�Y N �arrawer�nall �rompt�Y paY
<br /> 1. �'ay�ent ot T'rinc[�aQ��d l�at�rest; �re � m�,�t a�nd late cina��,es due under the Natc.
<br /> Z. Furas�s foo�'lCaues and �nsurar►�e. Suk+,cr: to app�i�a�l.,law ar tc� a wvritten waiv��by L.cndcr, 33ort°aweC sha11
<br /> p�y to �.ender an the ri�y monthfy ��ymen!�c are db�� ��r+der th� Nate, unti� tli�: Nvte is pa:�� in �'ull, a sum ("F'unds") for:
<br /> (a)}'early taxes�xn�l awsess�►ent��;ahzch ma� attain priurity �ver thi�Secur:t�Instrurnent a�a!ien on thr Proptrty: (U)Y�arly
<br /> l�asehv(d paymerits ar �rou*�d rr,nts on tEse Pro�rty, if a�y; (c) yearIy hazarc� or property i�surancs pre�niums; (d) yearZy
<br /> x�aod 'arrsuranc� pr�r�iums, yf aciy; (e�ye�rly rrsort�age insurance prernlums, if any; and (fl any sums payabl�;by �arr�awer ,
<br /> to T..�nder; ir�accardance dvith the pravisiars�f par�;��;raph 8, in lieu of the p�ayment af mortg�c��insurance premiums. These
<br /> items are called "��craw Iterr�s." Lender n��ay,at a�,�y tirr�e.r,;�ilect and tcsld Funcls in�n amaunt not ta exce�d th,e maxim.um
<br /> amount a lender tar a federally relate� rno��t�agr ►�an may re�luire for Borrower'�. es�row atcaunt under thc federal Re�i
<br /> Estate 5ettlen�en: Pr�:�d�acW.s Act af 15►74 as arvs�����c�e���i fram tine Co tim�, 12 �J.S.C. § 2601 et -se�. ("RESPA"). unle!�s
<br /> �noth�r la�v that appliec to ihc F�snds sc:ts a 4es.;.;:; �rn�.�ne. If so, Lendec ma,y. ai any tinae, eclle�C �ndl hold Futx��, i�c �iy
<br /> �ti�ount noc tv cx�.eed the .►•es.�er amount. I,eald�r :aay e:�t.�matc the amour,t o��'un�s due ^� the busis of currcnt dat�� aind
<br /> reasonablc essimates of expenditurr.s af fiit7u�� �;raw �t�ems or otherwisc in ac�ar��nce widi a�+pliea�h3c 1�'a�,
<br /> The �'unds sn�ll h,e held in an instStution whcr�e c�epcssits are i.nsu,-�.� by �i �'edzral agcney, ir►st±vrr�r.,lta.liry, or cr�tity
<br /> (includin�r L.ender, zf Lc�nder is such an izistxtution) or in any �edcral Hame l:c►an Bank. Lendee shgll apply th� Funs�� ta
<br /> pay the Escrow It�:ms. L.e:itder may noc charge Borrdwer fv�halditsg an�i applying the Furnds, �nnually analyzing t1�e escruw
<br /> accUUnt,o�verrfy:��the Fs�row Itcros, unless I.ender pays BorroweY'interest an ti�e Funds and apFiicable law pernnits I.�ender
<br /> to �aake sach a char�e. t�ca;vey�r, Lender may require l�orrvwer ta pay a one-time chatge for an independent real cstate
<br /> tax reportFng servic�use,i j?y L�ncier in connection with this loan,ur►Pess applicable Iaw provides ofherwisc. �.Tnles.s ar►agre�ement
<br /> is made�r a�,t�lic.ab�e€aw ,�er;;�ires interest Ya�be gaid, Lencle:shatl not be required tv pay Barrower any interest or�arnings
<br /> nn �he Fua�ds. �a:�c�:�er ,.�na I.cnder rray �gr�ee in writiz�g, howevcr, that inlerest shall be pa;,d on �he Funds. Lendcr shall
<br /> give ta�or�ou�er, �:�;thou:charge, an annual accaunting of the�uncis, showing cre�its and debits to thc 1'�nds and the purpase
<br /> fo��vtiich eact�dcbi?t�ttie Funds�.vac made.T'k�e�unds are ple���ed as aclditional security fo�r all sums secured by this Security
<br /> lnstrumen:.
<br /> If the�un,i,t�eld by Lx.nder exceed thc-amount,5�err,vitc•d to t�e held by applicable law, L.�;nder sh^'1 acccwnt t�Borrawer
<br /> for the w:c��ess Fr�nds in accordance with the. requirements o'.'appli�able law. If the amount of the �unds held by Lcnder at
<br /> any 2im: is �n�ot s�f�cient to �ay che Escrow Ttems when duc, Lender rraay so notify Borrawer in writing, and, in such case
<br /> Borrower �hall pay to Lender the arno�anz nec�ssary to ;nake up the deficlency. Barrower shall make up the defciency in
<br /> na mare ¢}►an twelve manthly payments, at Lende*'S SPle diSCretlAn.
<br /> Upon payment in futl of all sums ser�red �y this Security Instrument, L,ender shall promptly cefund to �orrawer
<br /> �ny Funds held��y L,ender. If,under paragraph 21, Lender shall acqui;e or seil the Pro�erty; l..ender, prior tn the acquisition
<br /> or salc �f the �ropc�xty, shall a.pply any Funds hel� by L.en�er at the tiroc of acquisitinr� c�c sale as a crc�iit agzinst the sums
<br /> secure� by �.his Security Instrum�nt_
<br /> 3, Ap�liesstion o�Payme�ts. llnless app�icebie law p�-ovides oth�rwisc, al� �ayments received by I.ender under
<br /> paragraphs 1 anci 2 sh�ll be apptied: first, to any prepayment charges due under the Note; second, tca ameunts payable uncler
<br /> p�ragrapta �'; third, to intcr,;st due; fou�th, ta nrincipai due; and �ast, tc� any late charg�s due under thc Note.
<br /> �3. C";iar�es�: ?_ie�s. [�orrower :�hall pay a11 taxes, asse�sments, charges, fines mnd impositians attributable to the
<br /> Property �vhich may atta;n pri�rity over this Security Instrument, and leasehold payments nr ground r�nts, if any. Bnrcower
<br /> sha31 pay these c�biigations in the manner provided iut pa:�'agraph 2, �r if not puici in that manner, Borrowcr shall pav them
<br /> on t.im� directIy to the persnn owed payrnenr.. $orrower shail promptl� furni�h to I.ender�11 noti�es of amounts ro be paid
<br /> ucsde�rhis paragraph.If�r±rrower makes these payme�nt�direcdy,Bonrower shall promptly furnish to Lender receipt5 evidencing
<br /> the paymints.
<br /> Borrower shall promptly dischargc any tien which has priarity aver this Security I�strument unless Borra�vcr: (a)
<br /> �:grees �� writira�to the payment of the obli��a!ion secured by the lie�a in a mac�ner acceptable to Lender; (b)contests in good
<br /> fait'r, the :i�n by, or defends againsi enfc�rccrr.ent of the licn in, legal praceedings which in tne irender's opinion aperate ro
<br /> pre�•en� th� enf4rcemenY of the lie�; or (c) secures from thc holder af the li�n an agre.�ment satisfx,ctory to I.ender subor-
<br /> dinating the lien t� this S�:curit�+ �nstrument. If Lender determines that any part nf the �'roperty is subject to a litr whi�h
<br /> ma.y attain prinrity over tt�is Se�vrity Instnzment, �.ender may givc Bandwer a noiice idcntifying the lien. F3orrower shal!
<br /> satisfy Che lien or take one or mare of the �ctions set farth abc�ve within 10 days of the giving of noPic�.
<br /> 5. Har.�rd or PriAperty Iresnrance. Borrower shall ke�p the improvemee�ts naw exiscing ar hereafter �rected on
<br /> tl�ic Property insure.d against ]oss by �re, hazards included within the term "extended cav�rage" and any other hazards,
<br /> includin� f3oods or flooding, for which Lender requir�s insurancc. This 6nsurancc shall be maintained in the arnounts and
<br /> for the pe.riz�d.s that I.ender require:s. The insurance carrier providing the ir.surance shall be chosen by gnrr�+vt�er subjecc to
<br /> Lender's appraval which shali not be unreasonably withheld. Tf�orrower fails to maintain coverage described abavc, l.,ender
<br /> may, at i.ender's option, obtain caverage to protect Lender's rights in the Property in ac:.ordat►ce wi.th paragraph 7.
<br /> �►li insurance policies ana ;en�waJs shall bc acceptable to I..�nder .,d shali include a standard martgage clause. I.ender.
<br /> shall hav�the ri�ht to hald the policies and renewals. If L�nder requires, Borrower shall prompely give to Lender alt receipts
<br /> af prid premiums and renewa: natices. ln the event of loss, Borrawer shall give prompt notice to the insurance carrier and
<br /> Lender. Lender may make proc�f of lnss if not madc pramptly by l�arrower.
<br /> Unless L.ene��r and Borrcwer otherwise agree in writing, it��urance procccds shall h�applied iq rr5taration or repai.�
<br /> af the Property damageci, if the resto�ration or repair is econorraieally Feasible and Lendcr'� see�rity is nc�t lessened. If the
<br /> rr.storation or re�air is not economica4y feasible or I..ender'G security would he lessencd, the insurancr proceeds shall be
<br /> �ppZied io C}tie sums 5CCUrt'eC1 by LhiS Securi!y instrument, whether or nat then due, with an,excess�aid tn]Borrawer. If Borrower
<br /> abande��s the Prop,erty, or does n�t «nFwcr within 3Q days a notice from I.pnder that ►he insuranre �arrier f�as �ffered to
<br /> settle a claim, then Lender may callect the:�surxncc pcoceeds. I.endcr may use the proceeds ta re��air or restor�thc Propeety
<br /> c�r to pay surns secured by this Securiry Inswment, whether or not then due. 'The 30-day pe:iod will begin when the nntic�
<br /> is giv'en.
<br /> Unless L.endcr and Barrower otherwise agree in wricing, any application of proceeds to princip�,i �hall not extend
<br /> or �stponc t}t��4cR.rr3�t���►��}�mn:nts referred tn in para�rap�s 1 ar�d 2 ar change the amount of the payments.
<br /> If�:�der paragrap��l t�ie�?ro�r�y i a �iY`ec�sby L,ender, Borro�ver's righi to any insurance policies and prqcecds resulting
<br /> frc�sn dama�c to the 't i�r the acc�disiti.on shalt pass ta Lender to thc exie�t of the su�rts s�Cured by this Security
<br /> Inst�um�:nt '�rn���r��i �sit�ri. a -
<br /> rY.a; �. .�a,.�,..�,.�_y�t• �" : � `'}i�
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<br /> Farm 3026 9/90 (page 1 ojS paqfs)
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