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UM, FORM COO ENAN M. Borrow" and Lender coveitnttt and agree as follows: g �'—~- 106376
<br />1. paymnt of Priadpd wad IaWW -, Prtpaytttaat aced Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidetwoed by the Note and any prepayment and late charges due under the Note.
<br />2. Faada hw Tu es sail lawnaee. 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 assessment% 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 />ttswtgsge insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis ofcurrent 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 ar
<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 />aW give to Borrower. without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose tar which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />thissecurity+ Infimm ertt.
<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: die 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 suliicient to pay the escrow items when due, Borrower shall pay to Letrder any
<br />amount necessary to make up the deficiency in one or more payments as required by Lender.
<br />Upon payment in frill of all sums secured by this Security Instrument, Lender shall promptly refund to Bctr rower
<br />any Funds held by Lender. If under paragraph 1.9 the Property is sold or acquired by Lender. Lender [star
<br />dhau immediately prior to the sale of the Pmpeny ar its acquisition by Lender, any Funds, held by Lz*nd= at Ttl~2 :ante Of
<br />ap?Mication as a credit against the sums secure d l* ~,his Security Instrument.
<br />Z Appiimtiea of l?*Y etas, Unitas applicable law provides othev6ase a1D paymen- is received by Lender sender
<br />paragraphs l and 2 sW be app!Ne& Gorse, to late charges due under the Note; =-on& to piea}Inent charges due under the
<br />Note third, to amounts paysb➢t under paragraph 2; fourth, to interest due: and las , to principal due.
<br />4 Charge; Liea+. Borrower shall pay all taxes. assessments, charges, fines and impositions attributable to the
<br />Property which may attain prioreey 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 them on time directly to the person owed payment. Borrower shall promptly furnish to Lender 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 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 enforcement of the lien or forfeiture 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 subiect 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 i3 days
<br />of the giving of notice.
<br />S. Huard luarance. Borrower shall 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 hazards for which Lender
<br />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 subject to Lenders 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 Wd 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 the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Leaner 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 Lenders security is not 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 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 Security 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 I 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 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. Preservation and 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 I=w, 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 Lender'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 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 value of the Property and Lender's rights
<br />in the Property. Lenders actions may include paying any sums secured b_s a lien which has priors- over this Security
<br />Instrument. appearing in court, paying reasonable attorneys' fees and eatieing on the Property to mzam- repairs. Although
<br />Lea der may take: action under r; ;its paragraph 7. Lender does not have to de `sq.
<br />Any amorous disbursed L;, Lender under this paragra,-Jn 7 sr2Ii become additie-�taC debt of 507rouer secured. liy tliis
<br />Security Instrument. Unless Borrower and Lender agree cur other re�•s of;ayment, these arr unto s120 bear interrest from
<br />the date of disbw- wment at the Note rate acuf shall be payable, w r.h ij .erest, upon notice fro- fi,, r• er to Herrower
<br />requesting payment.
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