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UNIFORM C0VFNAIVIS Borrower and Lender covenant and agree its follows: 89 103678
<br />1. Payment of Principal and interest, Prepayment anti We Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepaytnvill and late charges due under the Note.
<br />2. Funds for Taxes mad Insurance. Subject to applicable law or to a writI ..rt vaiver by Lender. Borrower shall pay
<br />to lender oit the day monthly payments are due under the Note. until tho Nott: is,,p;Ad in full. a sum ( "Funds") equal to
<br />r" one - twelfth of: (a) yearly taxes and assemmtnts which may attain priority ever this Security Instrument; (b) yearly
<br />' leasehold payments or ground rents on the Property, if any; (c) yet arl}'• hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiumm if any. These items are called "escrow ltums." 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 arc insured or guarante-ed by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funtlt, to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verlf�,Jhg•the escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law perrttits Len&r to make such -a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid, on the Funds. Unlc� awagreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any inlere -mor 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 @orrower on monthly payments of Funds, if the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow itt :ins 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 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 held by Lender at the time of
<br />application as a credit against the sums secured by this Secutic3 Ire Statirae«t.
<br />3. Application of Payments. Unless applicable law prcy4idestivherwise. all payments received by Lender under
<br />paragraphs 1 and Z' %W1 be applied: first. to late charges doe snider the Note; second, to prepayment charges due under the
<br />Note; third. to amootspayableutider paragraph 2; fourth, to interest due; and last, to principal due.
<br />4, CharptA • 1 tvs. -Wtwwer shall pay all taxes, assessments, .charges. fines and impositions attributable to the
<br />Property which n4y attain priority. over this Security Instrument;, and leasehold payments or ground tents, if any..
<br />Borrower shall pay these obligations in the manner provided in paragrVh 2, or if not paid in tbat manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shalt promptly furnish to Lerido 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 aromptly discharge any lien which has priority Aver this S& urity instrument unless Borrower: (a)
<br />' agrees in writing to the payment of the obligation secured by the lien irriiie aia!iser acceptable to Lender; (b) contests in good
<br />faith tlti: lien by, or defends against enforcement of the lien in, legal pr6ceeings 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 />ag;rsrr....t a tiaf ctory tc :,eitd:r os srdin„tinb ;h tier: to th s S—ur iy instrument. if Lender determines that any psrt 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 tike one yr more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />.5. Hared Iawrance. Borrower shall keep the ins frrovements 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 its the amounts and foie dd a 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 />X4,11 insurance policies and renewals shall be acceptable to Lender sib shall include a standard mortgage clause.
<br />LendersWl 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 th'e insurance
<br />carrier and Lender. Lender may make proof ref 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 somrrity is not lessened. If the
<br />restoration or repair is pct. economically feasible or LrndiwN security would be lessened, the insurance proceeds shall be
<br />applied to the sums set,^xcc+d b)-r• this Security instrument,. whether or not then due, with any excess paid po.Borrower. If
<br />Borrowsr abandons the Property. or does not answer within 30 days a notice from Lender thaw the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the ppr� Beds to repair or restore
<br />the Property or to pay sums secured by this SeLmfit 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. Borrower's right to any insurance polities 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. Preaervatiox ant .Mainteaaaee of Property; Lessebolds. Borrower shall not destroy. damage or substantially
<br />change the Property, alknv 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 title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of tender'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 legal proceeding that ma) significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate. for condemnation or to enforce laws or
<br />regutati(xes). then Lender may do and pay for whatei er A necessary to protect the value of the Properiy and t.ender's rights
<br />in the Property_ Lendei s actions may include paying any sums secured by a lien which hoc priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs Although
<br />Lender may take action under this paragraph 7. Lender does not hate to do see
<br />Atiy arriounts do buried by Lender under this paragraph "shall heutime additional debt of lorrow er -,ccured by this
<br />Security Instrument Unlm% Itcirniwer and Lender agree to other term~ of payment, these amounts shall bear interest from
<br />the dite of dnhursemcni at the dote rate anti shall be pj%ahlc. with interest. uron twits frilm 1 endct to llorroecr
<br />reyucsting payment
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