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UNiFORh1 CnV FNANTS Borrower and Lender covenant and agree as follows: 89— 103766
<br />I. Payment of Principal and Interest; Prepayment and Late Charges. Borrowchhall 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. 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 Nate is paid in full, a sum ( "Funds ") equal to
<br />one - twelfth or. (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 />tnorigagt: 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 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 />requires interest to be laid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. L=de>;
<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 secures 6y
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable pair 'to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when c1UO_- the C:xoess shall lie.
<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 bender 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 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 prig to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />appficatiesn as a cregh against the sums secured by this Security Instrument.
<br />3. Applieatios. of Payments, Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs i and 2 shall be applied: first, to late charges clue 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 dlr>~
<br />i Charges; Lisa. Borrower shall pay all taxe%. a ismments, charges, fines and impositions attributable to the
<br />Property which may attain ptriarity. over this Security instrument, and leasehold payments or ground ctenvc .if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower sha
<br />pay them on time directly to the person owed payment. Borrower shall ' promptly furnish to L:eultr 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 />�'r^r di JCUni instrument UtiC5S IoroWer: a
<br />) 21s% nii fides rtituti ain5 3 sui st vvcr tnis
<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 Lender's opinion. operate to
<br />prevent the enforcement of the Gen or forfeiture of any part of the Property. or (c) secures from the holder of the lien an
<br />agrcci :mt satisfactory to Lender subul-dirsitir,g the lien to this Security instrument. if Lender determines that any part 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 />3. Humtfi 1Gstouirme. Borrower shall: keep the improvements now existing or hereafter•tiaaected on the Pro
<br />peiiy
<br />insured against loss by fire, hazards included vi thin the term "extended coverage" and any other hi awds for which Lender
<br />requires t isurance. This insurance shall be maintained . in the amounts and for tlu periods that Lender requires. The
<br />insurance carrier providing the insurance shdhl. be choseii'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 stwdard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall ' promptly give to Under
<br />all receipts of paid premiums 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 trtade promptly by Borrower.
<br />Unless Lender and Borrower otherwiscagree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged. if the restoration or.rrVair. 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 pracm ds shall be
<br />applied to the sums secured by this Security Instrument,, *nether 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 proceeds to repair or restore
<br />the Property or to pay sums secured by this St.- -etrity 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 policies and proceeds resulting
<br />from damage to the Property pnor 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. Preservation and Maisteaance 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 or. 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 Lenderagrees to the merger in writing.
<br />7. Protection of Leader's Rights is the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument. or there is legal proceeding that may significantly affect
<br />Lender's rights to the Property (such as a proceeding in bankruptcy, probate. for condemnation or to enforce lases or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's right%
<br />in the Property fender's actions may include paying any suns secured by a lien which has pnor+ty o%er this Secclrnty
<br />Instrument, appearing in court, Iuy ing reasonable attorneys' fees and entering on the Property to tnal.e repmrs Although
<br />L Lender may take action under this paragraph 7. Lender does not have to do so
<br />Aity arliounts disbursed by Lender under this paragraph ?,.hall be,:orriE addrtl:mal dch, 0 fi+lrtim er %c,: tired by this
<br />Security Instrument t'nlcxs Nntro%er cud 1 enact agree to other terms of pay n,erll. t he.e all onto %hall hc•.ir niterrst firm
<br />tae :1wt.` t:� dr:b;;r+i.irtEiii iii Illt: :vretC tale aflQl ShAll t1e payable. t�tth itlletr +t Up,m n+ll.,' il+ +ill 1 crlder ro liommer
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