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M-103396
<br />UNIFORM CovsNANTB. Borrower and Lender covenant and agree as follows:
<br />1. Paymat of prfacdpal anti lateral; Prepayment and Late Charges. 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 />X >Faais for Taxies ate Iwarattee, 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 of: (a) yearly taxes and astasments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />monpge insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />batiks 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 (including Lender if Lender 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 />Lender pays Borrower interest 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 />i requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower. r. without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for whickea. -h debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrutiient.
<br />if the amount of the Fuiuk, held by Lender, together with the futum monthly payments of Funds payable prior to
<br />the due dates of e'h.,ir escrow items, shall exceed the amount required,ty, M4 the escrow items.wbeat due, the excess shall be,
<br />at Borrower's opefy= either promptly repaid to Borrower or creditcdt is Borrower on monthN, payments of Funds. If the
<br />amount reef the Mods held by Lender is not sufficient to pay the esC67w poems when due, BomM,, -r shall poy to Lender any
<br />atetdtd>Jr�iasry
<br />to makeup the deficiency in one or nwre payments is required by Lender.
<br />Tiiptx� payment in full of all sums secured by thN Si�,�rro .1:m`tntment, Lender shall pt (lily r®f Wo3 to Borrower ;
<br />any Funds held by Lender. If under paragraph 19 the Prudery or acquired by Lender., P.-wider shall apply, no later
<br />than immediately prior to the sale of the Fkperty or its acquisition by Lender, any Funds heU by Lender at the time of
<br />application as a credit against tie sums xeuired by this Security Instrument.
<br />3. Application of Psyasrats. 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 last. to principal clue.
<br />4. Charptst,: Liens. Borrower shidl• pay all taxes, assessments, charges, fines and impositions attributable to the
<br />PrcMrty which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Surrowo:r shall pay these obligations in the manner provided in paragraph 2, or if•nut paid in that manner. Borrower shall E�
<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 i
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />i 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 pan 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 detetmines that any pa: � of --
<br />the Property is subject to a lien which may, attain priority over this Security instrument. [eater may give Borrowers a.
<br />notice identifying the lien. Borrower shall satisfy the lien. or take one or more of the actions sea forth above within 10 days
<br />of the giving of notice.
<br />S. Hazard btsnranee. Borrower shall keep the improvements now existipg or hers Aer erected on the Property
<br />insured against loss by fire. hazards included within the term "extended coverage" and any othim hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the peric6. 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 -m standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires. Borrower 4,41 promptly give to Lender
<br />all receipts of paid premiums and renewal Notices. In the event of loss. Borrower shall give pt7ampt notice to the insurance —:
<br />carrier and Lender. Lender may make pr00%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 rept,ir
<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 Lo3di:r that the insurance carrier has
<br />offered to settle a claim. then under 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
<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 a,iy 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. Ptresertratiow alto Maistetaw of Property; Lessebolds, 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 ink shall not merge unless Lender agrees to the merger m writing. '
<br />7. Protection of Lender's Rigkts in the Property; Nfort~ Insurance. if lk-wrow-er fails to Nrform the
<br />ctnenantsand agreements contained in thisSecunty Instrument. or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate. for condemnation of to enforce laws or
<br />regulations), then Lender may doand pay for whatever is necessary to protect the %alue of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any came secured by a hen which has priority r• r this Securny
<br />Instrument, appearing in court. paying reasonable attorneys fees and entering rm the Property u,) make %, airs. Although
<br />Lender may take action under this paragraph 7. Lender does not hake to do so
<br />Any amount~ disbursed by Lender under this paragraph 7 shall lx%onic additioiial dcht of Iorrower'-rc tired h} this
<br />Security Instrument Untrss Borrower and Lender agree to other terms of payment. these ,niu+unts shall hear interest from
<br />the date of dishur,;cmei,t at the Bute rate and shall be vatiahle. pith interest. up+ii n,imx from Icrider to Rrrr, +ucr
<br />requesting payment
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