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UMPOM C,OVMAM Y Borrower and I.endercovenant atilt agree as follows:
<br />. L P0yw e t oat aai LttW=4 P1 V V 3 tat`stai Loge Glnrges. Borrower shrtU promptly pa when due
<br />the priticips ofand interest an the debt evidenced by the Note and any prepayment and late charges due udder the Note.
<br />L Fruds farTarres loll iAiiiii ner. Subject to applicable law or toa written waiiverby Lender, Borrowir shall pay
<br />to bender on the day montlily payments are due under the Note, until the Note is paid in full, a sum ("Funds ") equal to
<br />one -twath of: (a) yearly tues and assessments which may attain priority ova this Security 'Instrument; (b) Yearly
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<br />6s ON or. ground "Ma, .on the Property, -a any, (c) Yearly bawd rtistuamm . premiums, an O y y
<br />matrrate j pre�ti�imsiif and These item are culled "escrow items.',' Lender may estimate-the Funds due on the
<br />The Funds "be held in an institution the deposits or accounts o(which are insured or guaranteed by a federal or
<br />state sgerioy. (including 11 if Leader is such an institution). Lender shill apply the Funds to pay the escrow items.
<br />Leader 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 Lender to snake such a charge: Borrower-and - '
<br />' %coder may Agee in writing tbatir fereat sbi�ll be p6d-on the Funds. unless an agreement is made or sppiicab% lour . - --
<br />requimes interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Bonwma, without charge, an annual accounting ofth Funds showing credits and debits to the Funds and the
<br />purpow 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 Fund's held by Lender, together with the future monthly payments gf,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 />it BurmwWs option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />• amount of We Funds held by Lender is not sufficient to pay the escrow items when due; Borrower shall pay to Lender a4y
<br />amount necessary to make up the deficiency in one ormore 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 later
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Fender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />& Appli atiom of Paytsenta. Unless applicable law provides otherwisei all payments received by Lender under
<br />paragraphs 1 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, Chwim Liens. Borrower shall pay all taxes, assessments, charges, tines and impositions attributable to the
<br />_ -- - - -- Proparry- whWmay- attain- priority over this Security Instrument, and leasehold- payrents -or- ground rents,- if any:
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<br />Borrower shall pay thew 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
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<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)
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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 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; ur (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 alien 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 />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erectc4on the Property
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<br />insured against loss by tire, 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 Lender's approval which shall not be
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<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 writin$4insurance 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 applicatiion 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 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 Lender 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 significantly.aff-ect
<br />Le .der'a rights in the Property (such as a proceeding in t ankruprey, probate, for condemnation orto- emarce taws 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 becoine additional debt of Borrower secured by this
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<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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