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<br />l`tl't►t:VCt►tt \1ti1� Borr-lwer and
<br />Lendcrrosenantandaentasf�dle ,sus 89.... 1006
<br />1. Payment of Principal and Interest; Prepayment and Lute Charges. florrowcr shall pr ropily p,iy alien due
<br />the principal of and interest on the debt es idenced by the Noic• and any prepay nicnl ,titei late charges duc hider the Note
<br />2. Funds for Taxes and Insurance. Subject to apphcahle law or to ,► w ritten w :nt cr by I cider, Horrimer shall pay
<br />to Lender on the day monthly payments are due under the Noic, until the Note is paid iti full. it lint 1 "Fundy '1 equal to
<br />one•twelfttt of: la) yearly taxc% and assessntemts which may allain priority over tilts Security Instrun nt, (b) yearly
<br />leasehold paynents or ground rent% tilt the Property, if any; lei yearly hazard uv urance premiums; and (d) yearly
<br />mortgage utsur ncc premiums, if any. These item, are called "1scroH 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 io pay the escrow items.
<br />Lender may not charge for holding and applying the Funds. analyzing the account or veri6-ing the escrow items, unless
<br />Lender pays Borrower interest on the Funds anti applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest steal) be paid on the Funds. Unless an agreement ►s made or applicable law
<br />requires interest to be paid. Lender shaH not be myquired to pay Borrower any interest or cart igs on the Funds. Lender
<br />shall give to Harrower, wilhout charge, am 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 lrmtrument.
<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 ter 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 m 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 IQ the Pmperty is sold or acquired by Lender. Lender shall apply, no later
<br />than immediateky prior to the sale of the Property or Its arqulsilton by Lender, any Funds held by Lender at the time of
<br />application asa credit against the sum, u:-cured by the Security Instrument
<br />3. Application of Payments, l'nless applicable law p *oxides otherwise, all payments receited by Lender under
<br />paragraphs i and 2 shall he 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 winch may attain prioril% v,-er this Security instrument, and leasehold payments or ground rents, if any.
<br />Borrower %hall pay these obligations in the manner prcn ided to paragraph 2, or if not paid Iii that manner, BUrro..%cr s-hall
<br />pay them on tttnc directly to the person owed paytatcnt. Horrow•,z- ,;tali promptly furnish rs- Lender all ri.,tcces of am4,Nutus t
<br />to be paid under this paragraph. If Borrower makes these p wo.nls directit., Borrower shall promptly furitish to Lender
<br />receipts evidencing the pp nicnts
<br />Borrower ihall promptly discharge any lien which has prctxity oser 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;t(h�ontcsts in good
<br />oil h the lien by. of det'Vids against enforcement of the lien in. legal proceedimrti which in the Lenders cpiiiion operate to
<br />prevent the enforcement of ttic lien or forfeiture of any part of the Property :,rt (c) secures from the- kel-Or of the lien an
<br />agreement satisfactory to Lender subordinating the lien to nhts rtecUrilY Lnstr-••. ,
<br />..•mrnt..f lire °Werdet.r^:ic.:sthat any part of
<br />the Property is subject to a Len which may attain priority oser this Security Instrum.,w7P, Lender may give Berro -wer a
<br />notice identifying the lien Borrower ,;tall satisfy the hen or takeiii -tv or more of the actwasset forth alx`se wtibin. 1!v days :
<br />of the giving ofnotice.
<br />S. Hazard Insurance. Borrower shall keep the improvements nttty existing or hereafter erec(ed crt the Poi operty
<br />insured against toss by fire. hazards included within the term ..eaterided coyicrogce and any other hazards 6 r which,Lender
<br />requires insurance. This insurance shall be maintained to the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall he chosen by Burrower subject to Lender% approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall he acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall ha%e 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 went e'f loss. Borrower shall giv a prompt notice to the insurance _
<br />earner and Lender. Lender may make prriofof loss if not made promptly by Borrower
<br />Unle r: Gender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or repair
<br />of the PrrNr'ty damaged. if the restoration or repair is economically feasible and Lender's security. » not lessened. If the
<br />remoration pr repair Is not economically feasible or Lender's security would he lessened. the insurance proceeds shall be
<br />applied top rho sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower at+amdons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settles claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay su.mssecured by this Security instrument, whether or riot then due. The 30•day period will begin
<br />when the notice is given..
<br />Unless Lender and f1kirrower otherwise agree in writing, any applicatior of procced-&.10 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 or the pay merrrs. if
<br />under paragraph 19 the Property is act ;lured 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 Prt wq; Leaseholds. Borrower shall not destroy. da:r,2p .-.r�u�iscu wally
<br />'6ange the Property, allow the Property, to det, zrYorate or commit waste If this Security instrument is on a ieaschold.
<br />Borrower shall comply with the protiiarri *s of the llease• and if Borrower acquires fee title to the Properly. the leasehold and '�-
<br />fee title vhall not merge unless Lender.1grees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Horrower fails to perform the
<br /><;';venants and agreenienvs c,ntained in.this Security Instrument. or there is it legal proceeding that may signsficantly affect
<br />Lender's rights in the Property fsuch an a proceeding in bankruptcy. probate• for condemnation or to enforce bias i,r
<br />regulation,), then I.crider may doard.(�a+ iiir whateser n necessary 10 protect the %slue of the Property and Lendcr's riehts
<br />in the Property. Lender's actions mat include paying any sums secured by a lien which has prii,ntr oser this SCLitrott
<br />instrurnent. appearing in court. paying rcason:ehle`attorncys fces.md entering on the Property to m,;k .,.repairs. Although
<br />i ender Ina% take :redo m under thus paragraph'. Ll.-n der dots not has e to do so
<br />Any ainnurits etishurstd bs Lender under this paragraph l shall hcc,itne .iddnional debt •,f Horro%er secured ht this ti
<br />Securo Instruniviii 1't,1cs4 lfi,irisrr rid Lender agree to other terms of parrnrnt. tl,rsc ar +t, uiits sh:til hear inn rest lr iii
<br />the date of dishursemew st hit. 'dote idle . +nit shrill he pasah1c. with intctrst. up -ni n. ti.r 1r„iri 1 ender h• H : r.•ue r
<br />rcquestu►F; paytnerit ,
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