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<br />9®- -106460
<br />UNiTCW COVENANT& Borrower and lender covenant and agree as follows:
<br />1. I'aymsat at Prtaclpal tend lettrset; Ptnpayataat ardl Lats tom. Borrower shall promptly pay when due
<br />the principal of and interest on the dtbt evidenced by the Note and any prepayment and late charges due under the Note.
<br />L Fw ft for Taxes tt ad iasarame. Subject to applicable law or to a written waiver by Lender, Borrower shall Fay
<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; (b) yearly
<br />Ir=hold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premium. 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 Leader 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 mid
<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 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 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 shalt 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 Prolwsrn or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sutras secureJI* ifnixSecurity Instrument.
<br />3. Appllatioa of Payaseata. Unless 3P17Cicalrtr law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late chargm dlux 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; Llem Borrower shall pay all taxes, assessments, charges, fines mud 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 them on time directly to thy: person owed payment.lSo'rrawer shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragm.gb:. Bf Borrower makes thew payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payme m
<br />Borrower shall promptly discharge any Hen which 11as priority over this Security Instrwnoir restless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to (b) contests in good
<br />faith the lien by. or defends against enforcement of the Rmm in, legal proceedings which in the Lender "s opinion operate to
<br />prevent the enforcement of the Tien or forfeiture of any tnsrt of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the Nett ra this Security Instrument. If Lender determines that any pen of
<br />the Property is subject to a lien which may :t t.nA7i t, priority over this Security Instrument, Lender may give B orri weer a
<br />rotioc identifying the lien.. Borrower s!t°!1 Asa _: d!i_ lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. 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 insurana.- shall be Inaintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing tht i.nurance shai be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewalls sL.mLI be acceptable to Lender and shall include a staa4w.A mortgage clause.
<br />Lender shall have dke right tsr facild the policies and renewals. If Lender requires. Borrower shall promptly give to Lender
<br />all receipts of paid premiums and `enewal notices. In the e%ati of loss. Borrower shall give prompt natfce to thm euspmnce
<br />car Aarard LerAer. Lender may retake proof of loss if not made promptly by Borrower.
<br />i ht tess Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration r repair
<br />cfdw Property damaged, if the restoration or repair 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 proceeds shall be
<br />a-r led to the sutras secured by this Security instrument, whether or not then due. with any excess paid to Borrower. If
<br />&7rower 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 w 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 =,ytt:Ctly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />unciier paragraph 19 the Prope s. is acquired by Lender. Borrower's right to any insurance policies and proceeds m5utting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent ,,i d -te sums; secured be IiNn, Ss:nrity
<br />Instrument omcna lately prior to theacqutsti -Lon.
<br />6. fteswation and '_4laintenance of property; Leaseholds. tially
<br />dunge the Fro erzy. allow t•lse [property to deteriorate or commit waste. If this Secu:rtt•.s; Cr,.g�r: mmt ri zrt .J 5 hold.
<br />l3o ewer shall comply wtt b the provisions tithe lease, si -rd i f (Borrower acquires fee title ro the 1917W)~e :. cCre ti.:asefJ&d and
<br />fee title shall not merge unreo Lender agrees to the merger i ii. writing.
<br />7. Fi gate ian of Lender's Rights Lir the Property; Mortgage Insurance. If Borrower i11-s rp' .pvniiorm the
<br />covenants at? x'. We�ments contained in rhm Scacrrity Instrument, or there is a legal proceeding that may ,1grii1U , tly affect
<br />Lender's rights in the Property" (such as. a proceeding is i =lcruptcy, probate. for condemnation or to enforce laws or
<br />rq}1&tions), then Lender mays dAi ahif.pay for whatever is nee —ssary to protect the value of the Property: and Lendee, rights
<br />in the Property. Lender's ac.tuJns•ilaay include paying any sums secured by a lien which has priority over Ales Secunty
<br />Instrument. appearing in court. pap ng.re sonable attorneys fees and entering on the Property" to make repairs. Although
<br />Lender may take action under t his parign lJh 7. Lender does not have to do so.
<br />Any amounts disbursed by Lender ruiner this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security instrument. Unless Harrower and Lender agree to other terms of payment, these amounts Shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable. with interest, upon notice from Lender to Borrower
<br />requesting payment.
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