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$9--� 102189
<br />Utvti=r,►,at COVENAty ts_ Borrower sad Lradercoiveaant and agree as follows:
<br />1. Pay neut of priac4w sad Lataesk Prepsymat mad Late Chttrgts. Ponower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and ally pcepaynwnt and hate charges due under the N Ae.
<br />2. Ftmda for Tmzss sad lswraace. Subject to app8cabk law or so a written waiver by Leader. 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 a�^�!s whkh may attain priority over this Security Instrument; CO) yearly
<br />leasehold payments or ground rents on the Property. if any; (c) yearly hazard insurance premiums; (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items.- Lender ixy estimate the F slue 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 verifyirg the escrow items, unless
<br />Lender 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 requinA to pay Borrower any interest or earnings ao tly Funds Lender
<br />shall give to Borrower, without charge, an annual accoa-tting of the Funds showing crediti and debits to Me Funds and the
<br />purpose for whir h each debit to the Furtrls was trade. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Ends payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due the excess shall be.
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due. Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one or Tore payments as required by Leader.
<br />Upon payment in full of all sums secured by this Security Instrument. Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, no later
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Applicai o7 "-aymeuts. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 skai. be i p- lied: fist, to late charges due under the Note, second, to prepayment charges due under the
<br />dote; third, to amoanis payable under paragraph 2; fourth, to interest due-, and last. to principal due.
<br />a. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />iIroperty which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided ir- paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shali promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower 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 obligation 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 Lender's 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 lien an
<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 this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />5. Hazard 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 for which Lender
<br />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 Lendei s approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If .'•.ender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the •:vent of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Leander may make proof 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
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security instrument, whether or not then due. with any excess paid to Borrower. if
<br />Borrower abandons the Property, or does not answer withir. 30 days a notice from Lender that the insurance carrier hrs
<br />offered to settle a claim, then Lender may collect thL- insurance proceeds_ Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether o- tier then due. The 30-day period wili ingir , _
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in wntinp: any arpiication of proceeds to principal shall' not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs t and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Leader to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation a,�dNlaintettance e,f Proper;y; Leambolds. 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 Under agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significant1v affect
<br />Lender's 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 value of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appea ring in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />L_ndcr may take r,.ction 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
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment. these amounts shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable. with interest, upon notice from Lender to Borrower
<br />requesting payment.
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