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UNIT -aRra Cov ENAM Borrower and Lender covenant and agree as follows: when :
<br />1. Payttatat of Principal sad laterest3 Pt�aymtd and Late Cittargee. Borrower shall promptly lay
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under Cite Note.
<br />2. nmile forTaxw sad lamraaee. 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- tweirth 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 f1►ture 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 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 fltture 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 Narrower 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,l3orrower 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 fill of ail sums secured by this Security Instrument. Lender shall promptly refund to Borrower
<br />any Fvrtcts held by Lender. If under pua�.graph 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 :his Security Instrument.
<br />3. Application of Payrseatns. Unless applicable lawn 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 />♦, Gltarges; Liens, 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 />Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner. Borrower shall
<br />pay theta on time directly to the person owed payment. Borrower shall promptly famish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly fumish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge arty 1•irn which has ptiority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of ft fabligtibPiT w rued by the lien in a manner acceptable to Lender, (b) contests in good
<br />faith the lien by, or defends against : rrriut:cemetni cEtt3e lien in, If-* proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lifer., rsr fb6viture of any pari: oC the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender s-1Ji jrdi]z d17,r• the lien to thus Security Instrument. if Lender determines that any part of
<br />the Prepsrty is sntiject to a lien which enact sttaite priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satislcy: the lien or take one or more of the actions set forth above within Iii days
<br />of the giving of notice.
<br />S. Hazard Insurance. &-)tra er shalt keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term- extended coverage" and any other Bards for which Lender
<br />requires insurance. This insurance shall be maintained in ft amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by borrower subyact 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 standard mortgage clause.
<br />Lender shall 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 (•f loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to iresto:ation or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is nryt 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 BorrowM. If
<br />Borrower abandons the Property, or does not answer within 310 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim. then Lender may collect -zhe insurance proceeds. Lender may use the proceeds ao repair or restore
<br />the Property or tc* pay; sums secured by this Security Instrument, whether.o• not then due. The 30 -dag' 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 I4 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the thoperty prior to the acgrisidon shall pass to lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisit tem
<br />6. Preservation and It.11a[mtetimce of Property; Leasebmlds. Borrower shall not destroy, dmmsig.�r or substantially
<br />change the Property, allow the Poperty to deteriorate cr oammir waste. if this Smut Etc: Instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and t( e rower a,;cluires fee title to ncc Property, the leasthoft3. wcl
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Arsausnrtce. If Borrower fbi6- to perform the
<br />covenants and agreements contained in this Security instrument. or there tsa legal proceeding that may significantly affect
<br />Lenders rights in the Property (such as a proceeding in bankruptcy. probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the. slue of the Property and Lender's rights
<br />in the Property. Lenders actions may include paying any sums secured by a lien which has 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 have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment. these amounts shall bear interest from
<br />the date of disbursement at the '.Vote rate and shall be payable. with interest. upon notice from Lender to Borrower
<br />requesting payment.
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