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<br />10224
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<br />Uw1roltM CoviaNANTs iorrower and Lender covenant and agree as folloikMn
<br />t. Payataat of Prlaelpal and tnter�eatl Prepaynsiat ad late Cbarges, Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Flaads forTM {M and lasamace. 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 />one- twelfth nf: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents an the Property, if any; (c) yearly harwrd insurance premiums; and (d) yearly
<br />mortgage insurance premiums. if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />Dash 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 (hcluding Lender if Lender is such an institution). Lender shall apply the Funds to puny the escrow items.
<br />Leader essay cwt cltiarlga for bolding and applying the Funds, analyzing the account or verifying the escrow items. Unless
<br />Lestder pays Bmrnawar intact on the Funds and applicable law permits Lender to make such a charge. Borrower and
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<br />Lender may agme in uriting that interest stall be paid on the Funds. Unless an agreement is made or applicable taw
<br />requires interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lhrider
<br />shall give to Borrower, without charge. as annual acc ousating of the Funds showing credits and debits to the Funds ava 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 />"Security Instrument,
<br />If the amount of the Funds held by Lender, together with the future monthly pigments of Funds payable prior to
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<br />the due data of the escrow items. shall exceed the amount required to pay the escrow itom when due, the excess shlill be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Sm -rower on monthly payments of Funds. if the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow item i 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 Elgrrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply. so later
<br />than immediately prior to the sale of the Properly or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credil against the sums secured by this Security Instrument.
<br />3. Applkadw of Paytawnts. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 shrill be applied: Gnu, to late charges due under the Note; second, to prepayment charges due under the
<br />Note; thirst, to anwwnts payable under "mph 2: fourth, to interest due; and last, to principal due.
<br />d. Clttt pats; Cuss. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority. avrr 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
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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
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />rieceiptsevidencingthepayments.
<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 hen in a mannc r 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; or (c) secures from the holder of the lien an
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<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property it subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower gnat! 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. Ha=atd lasurttusm Borrnw►tr shall keetr the improvements now costing, or hereafter eret:tud ern the Property
<br />insured agsirm Wasby +dre, hazards included within the term "extended coverage" and any other hazards for which Lender
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<br />requires insurance. This Insurance shull be maintained in the amounts and for the periods that Lender requires. The
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<br />insurance carrier providing The insurance shall be chosen by Borrower subject to Lender's apprr►vnl which shall not he
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<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender owil shall include a mantt ird mortgage clause.
<br />Lender "I We the right to hold the policies and renewal%. If Lender requires. Borro►wa shall promptly give to Lender
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<br />all receipts of paid premiums and rnu wsl notices. In the e%eni d%f k>tr. Borrower shall Re %v prompt notice to the taa►wrance
<br />carrier and Lender. Lender may make proof of less.% if net made promptly by PAwrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance rc: v,ccds `hall he applied t-r r Unto sus von or repair
<br />of the Property damsged. if the restoration or repair is cconomxally (casiblE ,and Lender'+. security i4- •ne# lessened. If the
<br />restoration cur repair is not emiumicatly feasible or Lender's security would he lessened, the in %uranee pr #.-W:: QW1 be
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<br />applied to the sums secured by this Ssiurity Instrument, whexho -r or not then due, wish say exec%+% paid to PA rruarr. If
<br />Borrower abandons the Property. or don not answer wuhrn ?wt Uys a nt*1ue from Ltto kc that the into ance carrier hag
<br />affered to settle a claim. +loot Lender may collect the insurance proceeds. I ti rifler may use• ohe primteLN io repair or r IMI!
<br />she Property or to pay uaois secured by this Smunty Instrument, whether or not then due. The Ml- %tut pencil will begin
<br />when the notice is givotn .
<br />Vale" Le:tseer wad 80"'.mer oRt'herwne agree in writing. any applaarton of prt%:e vi to pnneipal %hall nut vicend or
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<br />postpone the due date of Ube monthly payments referred to in paragraph% 1 and 2 or change the amount of the Payment% If
<br />under narai rat is 19 the Prowrly is acquired by Lender. Borrower's rusht to anv insurance r"wies and ormeeds roultent
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<br />from diamsp io tlse PnipeCty prior to the acquisitwn shall pas. to. Leader a+ the ement of the sums %ecurcd by thn Security
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<br />Instrument immediately prior to the acquisition
<br />d. Pratrvatiom mw Mdmemmo of Proprrfy; i*wmbaltfa &►rruwer %hail ruN %leslrry. otamage.w +ut+%tanlially
<br />change the Property. allow the Property to deteriorate or comma waste. If Ih,% Smurny Instrumem n on a leasehold.
<br />Borrower shall comply with the proviuo►ns tithe kaw, and if &xrow•er acquat% fee stile to the hr.rerry, the leasehold and
<br />feetitk shall not merge unless Lender agrees to the merger in venting.
<br />7. Proteetion of Lender's Riots In dw Property; Nwtgrypt Insurance. if ltorrimer fail% to l►erforn the
<br />covenants and agraments contained in this Serum) Instrument, for there i%.& legal prmeeding that may %dgnificanil) affect
<br />Lender's rights in the Property (swh as a pr ccedrng in hAnkruptcy, probate. tar condemnaroo or to eofi►rce IA%% or
<br />regulations), then Lender may do and pay for whatoer ss necor%%ar) tit protect the %slue of the Property" and Lender'% nght%
<br />in the Property. Loidef's actions may include paying an) %urns wcureid M a lien which ha% pritirm tner Iht% secutit)
<br />Instrument, appnrmg in court. paying reammat%k attorne)%* fee% and entering ern the Prapert% to maMe repiirs Although
<br />Lender may take action under this paragraph 7. Lender does not ha%e la do %u
<br />Any anxwnisdisbuned by Leiter under chi% paragraph 7 %hall dehm .st Mormwet %rcurdtil h) Ill'%
<br />Security Instrument. hakes Ik►rnower and I. ender :sitteetit other lerm..d pa)mvw. the%% annum% %hall hear unere%t from
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<br />the date of disbursement al ncC Nrtr rat% and %lull he pr%Ahk. with uuere%t. ultint twits from I ender it, li mover
<br />requesting pay. ndrtit.
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