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<br />tIN11FGRMCovENAN7S Borrower and Lender covenant and agree as fol lows: 89-- 101039
<br />1. Payment of Principal and Interest" Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Fonds for Taxes avid Insurrance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full. a sum ( "Funds") equal to
<br />one - twelfth of: (a) yearly taxes and assessments which may attain priority over this Security instrument. (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Leaner may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items. unless
<br />Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid,. Lender shall not. be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the ffunds.shomng credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are Tlr dk,46i,,1*iW&tional security for the sums secured by
<br />this Security instrument.
<br />If the amount of the Funds held, by Lender. together with tine ruwre nioMi ly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay the heroic itartis, iiikon due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on moi-Al payments. of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items alien due, Bocrtt',?.rer shall pay to Lender any
<br />amount necessary. to makeup the deficiency in one or more payments us required by
<br />Upon payttii pt in full of all sums secured by this Security TfkAiament, Lender shall=, pi r;Nnptly refund to Bomewer
<br />any Funds held:byt;fiender. If under paragraph 19 the Property is srifr�'�r acquired by LendeC, !;ender shall apply. nu later
<br />than tmmectiaten,, pnor to the sale of the Property or its acquisition' ey Lender. any Funds held by Lender at the time of
<br />application as-ai 4it against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable1aw provides otherwise, all payments received by Lender under
<br />paragraphs 1 and2 shall be applied: first. to late charges -due under: O�Y.- Note; second. to prepayment charges due under the
<br />Note;. third. to.=ounts payable under paragraph 2; fdurth,.to ittt,6 .due; and last, to principal due.
<br />0, Cha Liens. Borrower shall pay all taxc�, assessments, charges, fines and impositid' attributable to the
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<br />Pinj�trty which may attain priority, over this Security Instrument, and leasehold payments or gmlin,4 rents, if any.
<br />,Bvv:,Awer shall pay these obligations in the manner provided in paragraph 2, or if not paid in that matine>ti. Borrower shall
<br />pky ..►hem on time directly to the person owed payment. Borrower shall promptly furnish to Lender all do n.- s of amounts
<br />to be paid under this paragraph. if Borrowcrr makes these payments directly. Borrower shall promptly .furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligalion secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lenders opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) Secures from the holder of the lie: an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />tltz !Property is subject to a lien which may attain priority over this Security Instrument. Lender rn# guar Borrower a
<br />na:ioc identifying the lien. B%nrower shall satisfy the li2m or take one or more of the actions set forth atN vice.'- i0%hin 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrowei shall keep 'irtz impro,.cm !ts now existing or he-w�!6tr'r erected on the Prfo 'y
<br />insured against loss by fire, hazards inc;46- f, •withir rite lam "exren4i<3 coverage" and an-, ,oj—o :. hazards for which Under
<br />-'•~c res insurance. This insaiiince %AaD'he mainT2:iceirs in the amounts and f.-,. the pe°,-iJs that Lender requires. The
<br />i.t3k--rE;nce carrier providing fbv +tscr^si�e shall be ctj:wii by Borrower subjec to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and rev pre' :hall be acceptable to Lender and shall include a standard mortgage c.Luse.
<br />Lender shall have the right to cold tht.p;1t.ies and renewals. If Lender requires, Borrowe- ce.� #11 promptly give to :; render
<br />all+receipts of paid premium.,,, :,rA renewal notices. In the event of loss, Borrower shall give prompt notice -to the insurance
<br />ca.-P, CT and Lender. Lender r.7 iy make proof of loss if made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree ^ u riting, insurance proceeds shall be epplied to restoration or repair
<br />of the Property damaged, if the restoratlicr, or repair is economically feasible and Lender &Wurity is not lessened. Ri t.rf;e
<br />restoration or repair is not economically Ensible or Lender's security would be lessened, ; :I;i, insurance proceeds s'nrd1 lvt
<br />3;phed to the sums secured by this Security Instrument, whether or not then due. with any excess paid to Borrower. If
<br />&:o'r'ower abandons the Proptiny, or does not answer %ithin 30 days a notice from Lender that the insu ranee carrier has
<br />ofi`ur d to settle a claim, then Lender may collect the insurance proceeds. Lender may use t rvt proceeds tt:, repair or restore
<br />6e Property or to pay sums secured by this Security instrument, whether or not then d;; 'r; The 30 -da;. ,t-t I- od will berm
<br />when the nciOx is given.
<br />Unless Lender and Borrower ot!ienvise agree in writing, any application of procce6. t» principal. Bbd!'; not extend or
<br />pt pone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount O'43te payments. If
<br />under paragraph 19 the Property is acquired by Lender. Borrower's right to any insurance policies and rn(;,,ccds resulting
<br />from damage to the Property prior to the u�4uisition shall pass to Lender to the extent of the sums secures: by this Security
<br />Instrument immediately prior to the acq, �!tiun.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy. damage: or substantially
<br />change the Property. allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property. the leasehold and
<br />fee title shall not merge unless Leader agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property: Nlortgiige Insurance. if Rorrower fails to perform the
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly affect
<br />Lenders rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the saiue of the Property and Lender'•; right -
<br />in the Property. Lender's actions may include paying any ~urns secured by a lien v►hich has priority o%er thr% security
<br />Instrument, appearing to court, paying reasonable attorney~ fees and entering on the Property t(• make repave. Although
<br />Leader may take action under this paragraph 7, lender does not hav a to d0 �c'.
<br />Any amounts dishursed by Lender under this paragraph 7 %hall hr; 0nie addittunal debt 0i llornm%cr %cured by this
<br />Security instrument. Unlessliorro%% crand Lender agree to other tern (-(it pa }ntent. theseanimmi % %hailhuariwt- re.tfrenn
<br />the date cif dishuneuicnt at the ~cite iaty and shall he payahlr..vnh ,nrerr.t, 1111011 notice it. ,iii I venter to llorrv%%er
<br />reque%ting prey ntrtu
<br />FN4
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