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UMFOM COVENANTS. Borrower and Leader covenant and agrmas follows: ,9V. v
<br />p•lArd>fwk"W-WO-10.yat— _LMACIA raOS— Borrower_shall- y ywhen_due -i
<br />the principal of and interest on the debt evidenced by the Rote an-4 any prefayment�d thargmuUWundir tii�cOt -- - -- - -
<br />2. Fink four Tatt and Itrraararree. 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 />rone=twetfth of (a) yearly takes and assessments whieli may attain` priority over this Security Instrument; (b) yearly
<br />kaTwld. payments or gro�[nd rents on the Property, if any; .(c) yearly hazard insurance gin rims; and (d) yearly
<br />moat% insurance premiums, if any.- These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis ofcurtent data anti reasonable esfimtes 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 />sate agency (iacludina,j under if Lower is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />herd gays Pormv!er intemt on the Funds and applicable 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
<br />requires interest to be paid,' Lender shall not be required to pay Borrower
<br />any interest or earnings -on the Funds. Lender
<br />i shall give to Borrower, without charge, an annual accounting ofthe Funds showing credits and debits to the Farads 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 Securit f Instrument. .
<br />If the amount of the Funds held by Leader, 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 Iorrowees option, eitherpromptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />i amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Leader 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 later
<br />than immediately prior to the sate 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 />& ApjUeatioe of PayruenM Unless applicable law provides otherwise, all payments received by Leader 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. CharRs; Leas. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />- iroperty which may- attain priority.0ver this Security Instrumentrand- .leasehold - payments -or Lground rents, if_any., -
<br />Borrower shall: pay these obligations in the manner provided in paragraph 2, or if not paid in that manner. Borrower shall
<br />pay them ontime 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 fumish 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 s
<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 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. Huard 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
<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 />4 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 i.5 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 theft 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 I and 2 or change the amount of the payments. if
<br />under paragraph 19 the Property is acquired by Lender. Borrowers right to any insurance policies and proceeds resulting
<br />fromdamage 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 provisionsofthe lease, and if Borrower mquires 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 Icga) proceeding that may significantly affect
<br />�� t. - . rf' (such. ..�.+. f..s alit si ra % r _rt!r,�ic.nrnonr?r, nr in nut-
<br />iavyc trr
<br />and is rights in .1." Pro`prrty (mist. gi .a prvc.w:ng : ^. bankf F. cy' p -bate. �f --
<br />regulations). then Lender may do and pay four 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 f
<br />Instrument, appeating in court. paying reasonable attorneys fees and entenhg on the Property to make repairs Although
<br />LLender may take action under this paragraph 7. Lender doe% not have to do so.
<br />Any amountsdisbumea by Lc. -Wer under this paragraph 7 shall become additional debt of Borrotver secured by this s
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment. there amounts shall beer interest from r`
<br />the date of disbursement at the Norte rate and shall be payable. with interest. upon notice frank I. -endet to Itnrrnwer �
<br />requesting paymeni.
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