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<br />89--102246
<br />UNWORM CovENANTS. Borrower and Lender covenant and agree as o ws:
<br />1. psyn"t of priadpatl d Iaterttat; Prepymeat seed Late Charges. Borrower shall promptly pay when due
<br />the principal ofand interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Fusels for Taxes s and lumance. 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 fuli,'a sum ( "Funds") equal to
<br />oat - twelfth of (a) yearly taxes and assessments which may attain priority. over this Security instrument; (b) yearly
<br />leasehold payments or ground rents an the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />towtgsge insurance premiums. if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonableestimates 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 I.endet if Lender is such an institution). Lender shall apply the Funds to pay the-e scrow, items.
<br />Lender may not charge for holding and applying the Funds. analyzing the account or verifying the-escrow items; unless...:
<br />Lender pays Borrower interest on the Funds and applicable law permits Leader to make such a:charge: Borrowerant
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made ar: appliciible hiW'' ,;.
<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 Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. 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 Funds paya'bler prior to
<br />the due dates ofthe escrow items. shall exceed the amount required to pay the escrow items when due, the crows shall be-
<br />at Borrower's idea, either promptly repaid to Borrower or credited to Borrower on monthly pa }-mints. of RM, di. If t .'fie, ;., .
<br />amount of fl*Furds held'by Lender is not sufficient to pay the escrow items when due. Borrower shall p,a� tv 1L. der and ; :,
<br />amount nice ssw7 io =ke� up the deficiency in one or more payments as required by Lender.
<br />Upm payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to SDrrower
<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. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first. to late charges due under the Note; second, to prepayment charges due under the
<br />Note-, third. to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Cbsrgea; Leas. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority • over this Security Instrumersr., -rid leasehold payments or ground rents, if ant.�..
<br />Borrower shall pay these obligations in the manner provided in pampaph 2, or if not paid in that manner, Borrower s'ha ?1'
<br />pay them on time directly to the person owed payment. Borroscr shall promptly furnish to Lender ail notices Cf amo� is
<br />to be paid under this paragraph. If Borrower makes these paynents directly, Borrower shall promptly furhnis2-. 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 lied in, legal proceedings which in the Lender's opinion operate to
<br />prevmt the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of ite lien an _-
<br />agrem u nt satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that say part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />=6= identifying the Um- Borrower shall satisfw eac lien or talre one or more of the actions set forth above within 10 days
<br />af the Ovimg Cif notice.
<br />5. Hit`aatrd louraaee. Boarower shall leer,, the unit- ovements now existing or hereafter erected on OiTe:Property '
<br />insured against loss by fire. hazards included wichtn. the tent "extended coverage" and any other hazards for eahch Lender
<br />requires insurance. This insurance shall be n9:YmmineDd in the amounts and for the periods the: Lende requires. The
<br />insurance carrier providing the insurance sh211 be chosen by Borrower subject to Lender's approval wtidi shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard rncorg.Age clause.
<br />Lender shall have the right to hold the policies vd renewals. If Lender requires, Borrower shall promptly .g i % -- to Lender 11
<br />all re c6pts of paid premiums and renewal notic&. fn the event of loss. Borrower shall give prompt notice to ifse insurance
<br />carrier and Lender. Lender may make proof of ham if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in wrten9, insurance proceeds shall be applied !o restoraetrin or repair
<br />of the Property damaged, if the restoration or repair is wariamically feasible and Lender's security is not 1cmned. If the
<br />restoration or repair is not economically feasible or Lend -es security would be lessened, the insurance proceeds shall be
<br />applied to the suers secured by this Security Instrument, whether or not then due, with any exc--,s paid to Borrower. If
<br />Borrower abandoes the Property. or does not answer within 30 days a notice from Lender that die insurance carrier has
<br />olle're d to settle a claim., then Lender may coll�,-a the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security In- rsrnent, whether or not then due. The 3O-day p&zd+ will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend a2,
<br />postpone the due dam: of the monthly payments referred to in paragraphs 1; and 2 or change the amount 6f the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies Lid proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument ir- metdiately prior to the acquisition.
<br />6 Pttseriatbm aced Maintenasee of Properpr, 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 riot merge unless Lender agrees to the merger in writing.
<br />7. Ptrotectiaa of reader'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 significantly affect
<br />Lena -en's rights in raze Property �xuch 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 y�
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security 1 {�l
<br />instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although [
<br />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 ifo►mwer secured by this
<br />Security instrument Unless Borrower and Lender agree toothrr 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 Hornmer } #�
<br />requesting payment r
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