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<br />UNtauttst COVF:NAN tS Borrower and Lender covenant and agrec a. fi)llosa.- 89-.A 03 61 4
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shalt promptly pay when duc
<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. Funds for Taxes and Insurance. Subject to applicable law or to a written waver 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 ("f=unds ") equal to
<br />one-twelfth of: (a) yearly taxes and assessments 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 />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis 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 tar 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 interriat 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 any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds 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 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 Borrower's 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 shall 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 al1 sums secured by this Security instrument, Letnf:r shall promptly refund to Borrower
<br />any Funds held by Under. If uodcr paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, no later
<br />than immediately prior to the sale of the Pr(Teny 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. 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 due.
<br />4. Charges: Litre. 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 />Borroawer. shall pay tJiaese obligations in the m:aa;tner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pays theta ich time tfir: oly to the peescm owed payment. 131ctrr -ewer shall promptly furnish to Lender all notices of amounts
<br />to be paid:'under this paragraph.. If Borrower retakes thmt 1myments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall-promptly discharge any lien which has priertty suer this Security Instrument unless Borrower: (a)
<br />80ofMJ[ in writira to errs ntswn+m �f th. ht�nv':....:�:::`r. v ih.- lMi, iii•u tir8o,ilci ati"Evinvfc tu, l.clr4t:t; A'n) tVntRtS 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 />agrectr_ . s.;tisraev- y to Lender subcoreirwirg the lim tr t "as S_cur.'ty Instrur:cnt. if Under determines tha: any part of
<br />the Property is s08jW to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying th.r. 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 />.1;,. Hazard Insurance.. kharrower shall keep the improvements now existing or hereafter erected on the Property
<br />ireA md,t inst loss by fire, hazards included within the term "extended coverage" and any other hazards for which Leader
<br />regains insurance. •lies insurance shall be maintained in the amounts and for the periods that Lender requires. The'
<br />insurance carrier presiding the insurance shall be chosen by Borrower subject to Lender's approval which shall not" be '
<br />unreasenably withheld.
<br />A:Il.insurance policies anti renewals shall be acceptable to Lender and shall include a standard mos tcgage clause.
<br />Lendirr ) atl have the right to hold the policies and renewals. If lender requires. Borrower shall promptly give to Lender
<br />all receipts -cif paid pran ».iums and renewal, notices. in the event of loss„ Iottower shall give prompt notice to the insurancc
<br />carrier sad, L'A'Wi a Lomder may make proof of loss if not made promptly: lay. Borrower.
<br />Uit.li s. Leader and Borrower otherwise agree in writing, tnsuran --e proceeefs.ytrall be applied to restoration or repair
<br />of the Property datrma&ed, if the rmtoration or repair is economically feasible and,Lender's security is not tested. If the
<br />restoraiiori or repair•.i� not eeonoirnieally feasible or Lender's security would be lessened, the insurance prmods shall be
<br />applied to the sums; s s:ured by this Security Instrument, whether or w' Irthen due, with any excess paid to Borrower. If
<br />Borrower abandons. titre Property. or does not answer within 30 days a tvatice from Lender that the insurance carrier has
<br />offered to settles, clal&.Ahen Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Propeviy or to pay sums secured by this Security instrument. whether or not.ibert due. The 30-day period, will begin
<br />when then otice is given.
<br />Unless Lender and Doriower 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 arnount of the payments. if
<br />under paragraph 19 the Property is acquired by Lender, Borrowers 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-, secured by this Security
<br />instrument immediately prior to the acquisition.
<br />6. Preservation aed 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 provisions of the tease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger m w rittng.
<br />7. Pmteetka of Lender's Rights in the Property: Mortgage insurance. If Borrower faits to perform ch.-
<br />wvertants and agreements contained to this Security Instrument• or there i% a legal pnx:eedtng that may significantly affect
<br />Lender's rights in the Property (Such as a prlxeeding to bankruptcy, probate. for condemnation or to enforce laws or
<br />regulations). then Lender may do and pay for whatercr is necccs3ry to protect the salue of the Property and I ender'. right-,
<br />to the Property. Lender's actions may include paying any sums.eiured by a lien ss hit. h has prtorm Deer thr. Set,urtta
<br />Instrument, appearing to court. paying reasonable attorneys' fees and cntcnrrg -m the Property to mahc repair. Althttnf;h
<br />Lender fri a) take aotrtn under this paragraph 7, Lender dt)cs not hasc itidoY stt
<br />Any amount% disbursed by i ender under the. paragraph 7 shall he.nmc addituvtal debt of livirt+wcr.r:urc•d h► r!u.
<br />�bftuIity Imirurncnt Ihrlesc fit IT rower and i ender agree itt other ter rnatit r•.ra moo. thz•c• anst•unr. %hi,II hear rItCrc%t into.
<br />the date tit tilshorwntent it thr Vote fate .tttd shall he pay.rhle Kith u;:,.r:.t op-n t:t'tl.c tr-,:Ii t t-nttel t ft:vt seer
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