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<br />9Q--- iQ 170
<br />UtittPnRN COVDIAM& Borrower and Lender covenant and agree as follows:
<br />1. ' Psyment of Peiselpal seed Interest; Prepayment and Late Charges. Borrower shall ptomptiy pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepa)ment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds-) equal to
<br />floe- welfth of (a) yearly taxes and assessments which may attain priority, over this Security Instrument; (b).yearly
<br />j r leas*10 payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items are called - escrow item.- tender may estimate the Funds due on the
<br />basisofcttrrent dat;iand reasonableestimatesof 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 Wsuch an institution). Lender shall apply the Funds to pay the escrow items.
<br />Leader tray not charge for holding and applying; the Fonds, analyzing the account or verifying the escrow items, unless ;
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to melee 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 interesst to be,paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender,
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<br />- — —r - - - W=HJPvitUHUr11UWC without charge,-an atmuaiaccouating -of the Funds shawingtredits amt d the
<br />purpose for which each deb_ it 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.Borrowees 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 shalt 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 later
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds Ireld 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 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 Iasi, to principal due.
<br />j 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 manner 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)
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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 Lenders 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 pan 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 />of the giving of notice.
<br />5. Hazard 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 />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 preriums 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 he
<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 prixeeds iii repair or iestoiic
<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. llorrowees 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 sum-. m-cured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Properjy; 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 Ilte provisions of the lease. and if Borrower acquires fee title to rite Property, the Ieaschold and
<br />fee title shall not merge unless tender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If harrower fails to perform the
<br />o:nvcnants and agreements contained in this Security Instrument, or there is a legal prnccoing that may signiticandy at %et,
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce law~ or
<br />regulations), then Lender may.do and pay for whatever is necessary to protect the value of the Property and Lender's rights
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<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 mays ake action under this paragraph 7. Leader does not have to do so.
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<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrowers and Lender agree to other terms cif payment. these amounts shall bear interest from.
<br />the date of disbursement at the Note rate and %hail he payable, with interest, neon nottee front i.ender to lies *m ter
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<br />to
<br />requesting payment.
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