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<br />UNt WI W PWENANiS: , Borrower and Lender covenant and agree as follows:
<br />of PHneiptal sttd Interest; Fre"yartest and L►te Charges: Borrower shall promptly pay wbot due
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<br />the pfind pt:l aiE'and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />`shall
<br />2. Fun& for Taxes sW Inwrme., Subject to opplicable•law or toa written waiver by Lender. Borrower pay
<br />to Lender on the day monthly payments are due under the Note, until the Note js paid in full,.a sum ( "Funds ") equal to
<br />one- twelftle of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />lssseltold paytttsstis`ctr grouad - rerttt. an thet Property, if any; (c) yearly hazard insurance premium • and d yearly
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<br />...:...,,. ,,r,..,..,...,:,, , • -� . _-�. �ttwct escrawcstems ~Leader may estimate thtFunds due nn -the
<br />basisof current daukpW reasonable estimates of future escrow items. -
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<br />Tbe'Funds shall be held in an institution'the deposits or accounts of which are insured or guaranteed by a federal or
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<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 vitaraafor holding and applying the Funds, anatyAng the account or verifying the escrow items, unless .
<br />4zd pajrs.Horrower interest on the Funds anOpplicable 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
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<br />tequires interest to be paid, Loader shall not be required to pay Borrower any interest or earnings on the Funds. Lender
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<br />shall give td Borrower; without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
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<br />purpose for which each debit to the Funds was trade. The Funds are pledged as additional security -Akthe 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 payaiile prior to
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<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess fia' t be,
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<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
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<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.
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<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. Application of Payments. Untess'applicable law provides otherwise, 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.
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<br />.. -.. . -,•�_ flarem Irkne.- - Borrower-shall pay all- taxes, assessments. charges. fines and impositions attributable to the
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<br />Property which may attain priority,over this Security Instrument, and leasehold payments or ground rents, t� any.
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<br />Borrower shall pay these obligations in the manner provided in paragraph 2, of if not paid in that manner. Borrower shall
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<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
<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
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<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 />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
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<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 />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
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Leader 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
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<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 shalt comply with the provisions of the lease. and if Borrower acquires fee title to the Properly, 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 />-covenant.- and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in hankruptcy, pr(fhate, for condemnation or to enforce laws car
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and L'ender's rights
<br />in the Property. Lender's actions may include paying any sums secured by is lien which has priority over this Security
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<br />Instrument, appearing iii court, paying reasonable attorneys fees and entering on the Property to mike repairs. Although
<br />Lender ma take action under this paragraph 7, lender dues not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Buruxver secured by this
<br />Security instrument. Unless Borrower and Leader agree togther terms of paymctlt. these amounts shall bear interest from
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<br />the date of disbursement at the Note rate and shall be payable, with interest. upon notice from 1 ender to Burrower
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<br />requesting payment.
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