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UNWORM COVENANTS. Borrower and Lender covenant and agree a% follows: 90-105776
<br />1. Paytaent of fWacipal sad laterasti Prepayment and late Charger. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and Isle charges due under the Note.
<br />2. Funtisr for Taxer 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 Note is paid in full, a sum ( "Funds ") equal to
<br />one - twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (h) 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 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 />j 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 />t this Security Instrument.
<br />t 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 Ise,
<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 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 />t 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 &credit against the sums secured by this Security Instrument.
<br />j 3. Applkation 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; Liens. Borrower shall pay all taxes, assessments. charges, fines and impositions attributable to the
<br />Propenh!a which may attain prinrity.over this Security- Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these oblipwa ons in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish tr Lewler all notices of amount.
<br />to be paid under Ois paragraph. if Borrowo, makes these payments directly, Borrower shall promptly furnish to Lendletr
<br />receipts evidencing the payments.
<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 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 enfora.�ernent of the lien or for lteb:ure of any part 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 determines that any part of
<br />the Property is subject to a lien which may attain priority over this Security instrument, Lender may got Borrower a
<br />i notice Wentifying 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 />S. Ha=W V aunnee. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against lass by fire. hazards included within the term "extended coverage" and any other hazards for which Lender
<br />i requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subjecu to Lender's approval which shall not be
<br />i unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Ltaider and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires,13orrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrowea ,hall give prompt notice tai the insurance
<br />carrier and Lender. Lender may make proof of loss if note spade promptly by Borrower.
<br />j Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or repair
<br />of the Property damaged, if the restoration n repair is economically feasible and Lender's security is not lessened. If the
<br />I restoration or repair is not economically feasible or Lender's security would he lessened, the insurance prooteds shall be
<br />applied to the sums secured by this Security instrument, whether or not then due, with any excess paid uc� 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 Vrnlserty or t„ +my surns secured by this Serurity Instr merit • v►i4aerher or not then due. The 30 day p`riod will tgdi
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree to wrceung. any applicat ion of proceeds to principal shall: not extend or
<br />postpone the due date of the monthly payments referred t :, to paragraphs l and 2 or change the amount of the,payments. if
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<br />from damage to the Property prior to the acquisition shall pas% to Lender to the extent of the sums secured by This Securvi,
<br />instrument immediately prior to the acquismtion.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall nrlt destroy, damage err substantially
<br />change the Property. allow the Property to deteriorate or commit waste If Witt Security Instrument is c.n a leasehold.
<br />Borrower shall comply with the provisions of the lease. and if Borrower aequtre:. fee title to the Property, the leasehold ar l
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Leader's Rights in the Property; Mortgage Insurance. If Mortimer fails to perform the
<br />covenants and agreements contained in this Security Instrument, ur there t% a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such m a proceeding in bankruptcy, probate. for condemnation or t, enfi)rce law% (ir
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Gender's nght%
<br />in the Property. Lender's actions may include paying any cum% secured by a lien which has prronr.N mer this Security
<br />Instrument, appearing in court. paying reasonable attorneys' fees and entering on i he Property to make repairs. Although
<br />I Lender may take action under this paragraph 7. Lender doe% not ha%e to do so
<br />Any amounts disbursed by Lender under thi% paragraph 7 shall become addrrnmal debt of Hortimer secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other term%uf payment. these ,tminiw% %hall tear intense from
<br />the date of disbursement at the Nutt talc and %hall be payable, with inicreM. uprn tw1ke trlmi 1 ruder io llotiower
<br />requesting payment.
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