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<br />U ktflDt M COV � y a tJ".'S Borrower and Lander covens at and three as follows.
<br />1. Psymmeat of PrIedpd mad I*WeM Prepmyttmrstt and Life (']Ta>v�L Borrower shall promptly pay when due
<br />ON pnnd* of and interest on the debt eviwienced by the Note and any prrpsymeni sud {sate charges due under the Pine.
<br />2. Fan& for Taxers said iattatrissim Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to Lender on the icy nr'mthly payments arc due under the Noce; until the Nore is paid in full. a sum ("Funds") equal to
<br />o.!r -twe ?its of: (a) yearly taxes and assessments which may attain priority over this Security instrunvent: (b) yearly
<br />leaschold payments er grouna rents on the Property. if any; (c) yearly hazard insurance premiums: and (d) yearly
<br />mortgage insurance p�, : miums, of any. These items are called "escrow items Lender may estimate the Funds due on the
<br />basis of cutrenr dxts and reasonable estimates of future escrow items.
<br />The Funds shall be held in an L4stitution the deposits or accounts of which are insured or guarantees) by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the acroa items.
<br />Leerier 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 f=unds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that iriterst shall be paid on the Funds. ttnless 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. Lander
<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 arc pledged as additional security for the sums secured by
<br />this Security Inurumenr_
<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 4the escrow items. shall exceed the amount required to pay the escrow items when due, the excess steal: 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. EOrrower 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 Fund% heid by Lender If uArr paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, no later
<br />than immediatrIv prier to the sale of the Property or its acquisition by Lender. any Funds held by Lender at the time of
<br />application as a: red:; against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payment% received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note; second. to prepayment charges due under the
<br />Note; third, to arn-,iunt%payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charm Liens. Borrower %hall pay all taxes, assessments, charges, fines and impositions attributable ter the
<br />Property which may attain pnortty over this Security Instrument, and leasehold payment% or ground rent+, 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 Lervler all notice+ 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 prio -rity 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 dcfeMs 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.nropeny: or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security instrument. if Lender driermine+ that any part of
<br />the Property is subject to a hen which may attain priority over this Security Instrument, Lender may give Borrower a
<br />mete identifying the lien. Borrower sha11 satisfy the hen or take one or more of the actions set forth above wehin 10 days
<br />of the giving of notice.
<br />S. Hazard Inswanee. Borrower %hall keep the improvements now existing or hereafter erected on the Property
<br />insured against lw° hr 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 provtdrntt rh- m%urancc shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unrrasortablf withheld
<br />All insurance pdrew% and renewals OUR be arceptabk to Lender and shall occhide a mardard mortgage clause
<br />Lender shall have the right to hold the policies and renewals. If Lender require+. Borrower %hall promptly give to Lender
<br />all receipt% of paid premiurrns 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 ens if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writtrrg, insurance proceeds shall be applied to reiteration or repair
<br />of the Property damaged, if the restoration or repair ii economicali� feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security wou'd be lessened. The insurance proceeds shall be
<br />applied to the sums s"uree" by this Security instrument, whether or not theft clue, with any extra paid to Borrower. If
<br />Borrower shan.iom the Property, or does not answer within 30 days a notice from i.ender that the insurance carrier ha+
<br />offered to settle a claim, then Len&.r may collect the insurance proceed.. %. Lender may ute the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then rue. The 30-day period will begin
<br />when the notice is given.
<br />Unless Lender and llorrower otherwise agree in writing, any application of proceeds 7n principal ohall 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 ra> ments. If
<br />under paragraph 19 the Property is acquired by Lender. Borrowet's right to any insurance policies and prmeed% resulting
<br />from damage to thr Property prior to the acquimnon shall pass to Lender to the extent of the sums secured by the+ Sotiuto
<br />Instrument immediately prior fen the acqur%itron
<br />6. Pr<r%erratlan and P falntenanee of Propesjd; l.eaaeholds. Borrower shall not destroy, damage or +uhstartially
<br />change the Pty. ►perry, allow the Prnprrty In deteriorate or contmn waste, If this Secur cy Instrument is on n leawhold.
<br />Borrower %hx11 cnrrrply With the prrvneom or the (case, and if Harrower acquires fee vfl,,r to the Property, the lemehold and
<br />(cc title shall riot emerge unless I ender aKrec+ to the merger in writing
<br />7, Protection of I.rndet'v nights In the Property: Mortlpov In'artre*, !f Fterrrower fail♦ to perform the
<br />covenant+ and agreement% contained in this Security Instrument. or there rs a legal proceeding that may iiSmllcanlly affect
<br />L ender'+ rights in the I'mperty (such a% a proceeding in henkruptcy, prorate, for condemnation or Io enforce hew% or
<br />regulations), then lender may do and pay for whatever is necessary to protect the value of the Property and I.ender'% nghis
<br />in the Property. Lendcv's actions may include paying any sums secured by a lien which has prionty over this ticcurity
<br />Instrument, apivarwg to court, prying rea%trnable ■tiorncys' fees and entering on the Property to make repair+. Although
<br />Lender may take action under aht+ paragraph 7, Lender dues not have to do %o
<br />Aux arrrorunt% disbursed by Lender under this paragraph 7 shall become additional debt of lterrrower secured by this
<br />Security Instru nont Unless Rorrowcr and lender agree to other terms of payment, thew amount% %hall hear iniermt from
<br />the date cl dnburwrr►rnt at the Note rate and %hall be payable, with interest, upon notrc. from Lender to Borrower
<br />requesting payn rest.
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