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OUP 10 2 v 14
<br />t.'t4IF.ORM COYEN^%TS. Borrower and Lender covenant and agree a %follows:
<br />1.. Payment of Principal and Interest; Prepaymeat and We 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. Funds for Taxes and tasuraace- Subject to applicable law or to a written %aiv er by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Dote, until the Note is paid in full. a sum ( "Funds ") equal to
<br />one - twelfth of: (a) yearly taxes and assessment -s 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 utsurance 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 />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items. unt:ss
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to matte such a charge. Borrowler 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 annuil accounting of the Funds.showing credits and debits to the Funds and the
<br />purpose fon which each debit to the Funds was made. The Funds are pledL -% s. additional security for the s�rms secured by
<br />t ; i Swuuiiiri Instrument.
<br />40'+dze amount of the Funds he.h by Lender, together viti. the fu: oe nor. a--Pi tax} mr nts of Funds payable prior to
<br />t�1i ��wae dates of the escrow items, shall exceed the amount required to paq;. i °� � �� items a iien due, the excess shall be,
<br />t�gorrower s option. either promptly repaid to Borrower or credited to F+: izower on monthly payments of Funds. If the •.
<br />:`..aunt of the Funds herd by Lender is not suffi6ent to pay the escrow when due, Borrower shall pay to Gender any
<br />amount Awessary to make up the deficiency in one or more payments as required by
<br />E ,pvN.A• payment in full of al. turns secured by this Security instrument, Lender iE4a 1 promptly refund to iirk,*.rower ,
<br />any. Fri. rib 1held by Lender. if under paragraph 19 the Property is sold or acquired by- F es=der, Lender shall apply . ho later ,
<br />t+ immediately prior to the sale of the Property or its acquisition by Lender, any Funds held hy; Lender'at the time o€ .•.
<br />gpp'icafon as a credit against the s: ^ss secured by this Security Instrument.
<br />3. -- Application of Paymen2s. Unless applicable law p- ovides otherwise, all paymerts.m e..ved by Lender under
<br />paragraphs I and 2 shall be app re;::..frrst, to late charges due under the Note: second, to tvpayment charges due under the
<br />Note; third, to amounts payabSe an-6�r paragraph 2; fourth, to interest due: and last, to prm%ipai due.
<br />Charges; Lauri. Bor.-r all taxes, assessments. charges, fines z:-,d imposr:tions attributable to the
<br />4. -aver shall pay
<br />rs- operty.which may attain priority. over this Security Instrument, and. leasehold, payments rsr ground rents, if any.
<br />a?cws� shall pay these obligations in the manner provided in paragraph 4, or if cat reid in that etanner, Borrower shall
<br />rr3F them on time directly to the penon owed payment. Borrower shall pros ptly -rust it h to Lender all notices of amounts
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<br />to be paid under this paragraph. If Borrower makes these payment% directly, Bc rro fx shall promptly furnish`,; te,, Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
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<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
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<br />faith the lien by, or defends against enforcement of the hen.irr, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any pa:; of the Property; or (c) sect:res from the holder of the lien an
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<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priority over thin Security Instrument, Lender may give Borrower a,
<br />notice identifying the lien. Borrower shall satisfy the hen or take one cr tire• re of the actions set Ii-: r h a hove within 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the iniprevements+ now existing or hereafter erected on i.hity Property
<br />insured against loss by fire, hazards included within the term "extended t,(;; ••erage" and any other hazards for whin!' Leader
<br />require.% insurance. 'this insurance shall be maintained in the amowiu:. and for the periods that Lender re;;srres. Tii¢
<br />insurance carrier providing the insurance shall be chosen by Borrower: ± iubject to Lender'% approval which stall not he
<br />unreasonably withheld.
<br />All insurance policies and rotewals shall be acceptable: '.ii Lender and shall include a standard monga�! clause.
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<br />Lender shall have the right to bold tae policies and renews:;. l:f Lender requires. Borrower shaf i, promptly omptly give to Lender
<br />all receipts of paid premiums and, renewal notioxs,, In the event of 10%%,13; mower shall give prompt notice to the insuran x
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<br />carrier and lender. Le; ider ni-a j make proof of lass if not made promptly by Borrower.
<br />Unless Londe ,. r', srcna•raotherwise agree in writing, insurance prmeeds %hall be applied to restoration or repair
<br />of the Prep,e;ty da-r .:` - ci. A flic i, <�;roration or repair is economically feasible and Lender's security is not less+: Red. If the
<br />restoration at repair i t irnizally feasible or Lender',; security would be lessened, the insurance procilcp3s shall be
<br />applied is the sums wxiired L•y tars Security Instrument, whether or net then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property. or does not answer within 30 days a notice from Lender that the insurance carrier ha:
<br />offered to settle a claim, then Lender may collect the insurance proceeds. lender may use the pros, +aids to rep ti r or restore
<br />the Property or to pay sums cecurW by this Security Instrument, whether tit not then due. The *r9 -day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, an) application of proceeds to principal %hall not extend or
<br />postpone the due date of the monthly payments referred to in paragrapf•,-, i and 2 or change the amount of the payments. if
<br />under paragraph 19 the Property is acquired by Leader. Borrower's right to any insurance policies and proccedc resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums %ecured'by this Security
<br />Instrument immediately prior to t he acquisit ion -
<br />6. Preservation and Maintenance of Property: Leasel:cl.S:. 11,,rr< +cr %r ail not destroy. damage tit %ubstantially
<br />change the Property, allow the Property to deteriorate or con"mir Waste If this Security Instrument is on at leasehold.
<br />Borrower shall comply with the protisions, (if the lease, and if Rorroacc ' c4urrc% fee title to the Property, tha: leasehold and
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<br />fee title shall not merge unlc%% Lender agrees to the merger in writing.
<br />'f. Protection of Lender's, Rights in the Property: Mortgage Insurance. If Rurrower fails to perform the
<br />couent.itis and agreements contained in this Seallarty Instrument, or there i%a legal procceding that may significantly affect
<br />Lender'~ rights in.tiic ".1roperty (such as a rim;1 ecdmg in bankruptcy. probate. for condernriattmn or its ctirmir last., t,i
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<br />regulations). then Linder may do and hay for whatever is neces %ary sir protect the valuc(if file Property :rod 1 ender %, riphr%
<br />in the Property. Lender'~ action% may include paying any sums %ecurcd by it lieu which ha% prurnty r.% r tins Security
<br />L Instrument. appearing in court. paying reavmabte attorney- fec %and entering on the Property to mitre repair% Milli a gh
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<br />i ender may take aoitat under this paragraph `. Lender does not have to do %o
<br />Any apit,untc disburscd by Lender under his paragrapi► 7 %hall heccmie addinonAl cieht 0 Iiorro ,cr w: tncd by rho.
<br />Security In%trumetit I tnles% Rorrtrwer and I ender ,spree to other term: of payniew. these anwura,.hall bear tr•:crc,-t Irtau
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<br />the (late of di,bar,enicnt at the '`ore Tate aid Oh ill !lc ra.at�lr. :►rt4, :ut;tr,t. tit im n •t :�e t!",111 ! cn�! r r.+ k :r, tier
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