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<br />c 1: 'Payout of Pdndpd MA flit ere t and Late Charges. Borrower shall promptly pay when due
<br />the principal ofand ;'merest otr thedebt evidenced by the Note and any prepayment and late charges due under the Note. =
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<br />- - -- _ _2., :-Fxm& for Tuxes said .Itraat prawn Subject to applicable law or to a written waiver by Lender, Borrower shall pay.
<br />to Leader 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 o€ (a)�yearly saxes and assessmentg Much may attain priority Over this Security Instrument; (b) yearly
<br />— kuchck Aayirma- nt- ground-tents -the F if arty- lcl yearlpc.hazard inrasraace-
<br />mQite insurance premiums, . any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of curtest 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 i(mcluding Lender if Lender is such an institution). Lender shall apply the Funds to pajr the escrow items.
<br />Lender dray 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. 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 4o be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall dive to Borrower, without charge, an annual accountingof 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 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 more payments as required by Lender.
<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 dater
<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. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority, over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the mariner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall 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 />ofthe giving of notice.
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<br />S. Razard 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
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<br />requites 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 Lender'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 Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. lender 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 within 30 days a notice from Lender that the insurance carrier has - -
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period 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 or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 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 Lender to the extent of the sums secured by this Security
<br />instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage err 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
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<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />-: 7. Protection of Leader's P.lfdttss -in the Property: Mortgage Insurance. If ltnrroeer fail: -to perform the
<br />i cavcnants and a ,e cfrrrer-sis cat,taiued in this Security instrument, or there is a legal proceeding that may significantly afrect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate. for condemnation or 'tor enforce laws or
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<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. 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 Porro wer secured by this
<br />Security Instrument. Unless Borrower and lender agree to other terms o,f payment. these ar hunts shall bear interest from "
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<br />the date of disbursement at the Note rate and shall he payable, with interc�t. upon notice. from lender to ! torrower
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<br />requesting payment.
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