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101214
<br />hNtEOttM CoveS,ytiTS. Borrower and Lender covenant and agree as follows: K_
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall prompt! pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes 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 prionty over this Security Instrument: (b) yearly
<br />ieasehold paymetit% 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 "`-crow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds %hail 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 he 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 *o 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 Sexuniv 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', 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 neces%ar y 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 f=unds 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 Property or its acquisition by Lender, any Funds held by Lender at the rime of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. unless applicable law provides otherwise. all payments received by Lender under
<br />paragraphs I and 2 shall he applied: first, to late charges due under the tiote: second, to prepayment charges due tinder 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 />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 shad
<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 prchnpt#y furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has pnonty over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the hen m 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 tc this Seeurav Instrument. If Lender determines ihat any part of
<br />the Property is subject to a lien which may attain pnonty over this Security Instrument. Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one ar more of the actions set forth above within 10 daN
<br />of the gi %ina 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 ct?vcrage and any other hazards for which Leader =±
<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 he chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />, kIl 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 prompt 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 prompts} by Borrower.
<br />Unless Lender 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 Lendef s security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceed., shall be
<br />applied :o 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 clans a notice from Lender that !be 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 10 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 anv 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 lfaintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantialtv
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument -!,on a leasehold.
<br />Borrower shall comply with the provisions Lift he lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />zee 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 Secunty instrument. or there is a legal proceeding that may %ignificanth affect
<br />Lender's 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 w: atever is necessary to protect the value of the Property and Lendet % right,
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has pnont% aver this Securm
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repair, Although
<br />Lender may take action under this paragraph 7, Lender does not have to do so
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<br />Security Instrument Unless Borrower and Lender agree to other term, of payment, these amounts shall bear in(crcst from
<br />the date of dishur%emeni at the Note rate and %hall he payable. with interest, upon notice from I envier to liorroccrr
<br />requesting payment
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