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0w- 1025 ii
<br />LINIHMM Ct1YI:NAN IS Borrower and Luniler covenant and agree as Rllow's:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges, Borrower shall promptly pity when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges clue 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 />r to Lender on rile day monthly payments are clue under the Note, until the Note is paid in full. a sum ("Funds ") equal to
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<br />one - twelfth of: (a) yearly taxes and assessments which may attain priority over this Security instrument. (h) yearly
<br />leasehold payments or ground rents on tine 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 he held in ant institution the deposits or accounts of which are insured or guaranteed by it 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 mterest 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 to the Funds and the
<br />purpose for which each debit to the Funds was made. The Fords 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 suflicrent to pay the escrow items schcn 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 shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Fender 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 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 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; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Securitv Instrument, and Ieaschold payments or ground rents, if array.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2• or it' riot 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 he 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 it 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. 1f Lender determines that any part of
<br />the Property is subject to a lien which may attain priority over this Securily Instrument. Lender may give Borrower a
<br />notice identifying the hen. Borrower shall satisfy the 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 Ices by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall he maintained in the amounts and for the periods that Lender requires. The
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<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld
<br />All insurance policies and renewals shall he acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. 11 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 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 Lender's security is rot 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 ly the Property is acquired b% Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acgmsition shall pass to Lender to the extent of the sums secured bv. this Securitv
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not ciestroy, damage or subslanualh
<br />change the Property, allow the Property to deteriorate or commit waste. If this Securitv Instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the Ieaschold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
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<br />7, Protection of Lender's Rights in the Property; Mortgage insurance. If' Borrower tails to pertorni the
<br />covenants and agreements contained in this Securitv Instrument. or there is a legal proceeding that may signdicantly atrect
<br />Lender's rights in the Property (such as a proceeding in bankruptc), probate, for condenrnaton or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the s aloe of the Property and Lender\ rights
<br />in the Property. Lender's actions may include paying any suns secured by a hen which has priority user this Security
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<br />appearing in court, paying reasonable attorneys' fees and entering on the Property to make rep;urs Although
<br />(� :.ender may take action under this paragraph 7. Lender does rot base io do so
<br />Anv amounts disbursed by Lender under this paragraph 7 shall hc•coinC •Wdiunn :d des o' Bormwci .reared by this
<br />Security Instrument Unless licirrower and Lender agree io other terms,+' pas meni. these moats shall hear nilcrcsi'mni
<br />the date of dishurscmeni at the Note rare ,in([ shall he payable. with miters!, upon notice hum 1 indei to BorRrwer
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<br />requc +tiupt payntc•nt
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