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<br />1 UMFMM C0vWAWs. Borrower and Lender covenant and agree as follows: ���. ',O�6
<br />1. K Prhe1�d- and htapasl; ft@PWN N "d tab lam. Borrower shall promptly pay when due the
<br />principal or and inter on the deM evidenced by the Note and any prepayment and late charges due under the Note.
<br />_• FtaMs tee Tan aad hnrnnre. Subject to applicable law or to a written waiver by Lander, Borrower shall pay to
<br />Leader on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds ") equal to one-
<br />two M of: (a) yearly cartes and assessments which may attain priority over this Security Instrument; (b) yearly kaFtold
<br />payments or ground rents on the Property. if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance
<br />pwmha, if any. These item are caged ,escrow item." Lender may estimate the Funds due on the basis or current data
<br />and reasonable estimates of future escrow items.
<br />The Funds &MU be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agec �ng y fmelu Lender it Lender is such an institution). Lender shall apply the Funds to pay the escrow items. Leader
<br />may not charge for holding and Applying the Funds, analyzing the account or verifying the escrow it
<br />Borrower interest on the Funds and applicable law ems, unless Lender pays
<br />permits Lender to make such a charge. Borrower and Leader may agree in
<br />writing that interest shall be paid on the Funds. Unless an agreement is made or applicable taw requires interest to be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without
<br />charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to
<br />the Funds was made. The Fonds are pledged as additional security for the sums secured by this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the
<br />due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be, at
<br />Borrower's option, either promptly repaid to Borrower or credited on monthly payments of Funds. If the amount of the
<br />Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any amount
<br />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 any
<br />Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, no later than
<br />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. Appillea0m of Paye aeab. Unless applicable law provides otherwise, all Payments received by Lender under
<br />paragraphs 1 and 2 shall be 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 />1' Chat$"; [Am. 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. Borrower
<br />shall pay these obligations in the manner provided in paragraph 2, n if cast paid in that manner, Borrower shall pay them on
<br />time directly to rite Perron owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under
<br />this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender receipts evidencing the
<br />payments.
<br />Borrower shall Promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees
<br />in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith
<br />the ben by. or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent
<br />the enforcement of the lien of forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that an agreement
<br />subject to a lien which may attain Instrument, Y Part ce the Property is
<br />lien• Borrower shall satisfy the lien or takte one or more of the actions set fah above within 10 des of identifying the
<br />Ys giving of notice.
<br />3. Haag pkuassOM. Borrower shall keep the improvements tow existing or hereafter erected on the Property insured
<br />against loss by fire, havards included within the term "extended coverage" and any other hazards for which Leader requires
<br />insurance. This insurance shall be maintained in the amounts sad for the periods that Lender requires. The insurance carrier
<br />Providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld.
<br />AN insurance prolicies and renewals shag be acceptable to Lender and shall include a standard mortgage clause. Lender
<br />shall have the right to hold the Policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts
<br />Of Paid Premiums and renewal notices. In the event of loss. Borrower shalt give prompt notice to the insurance carrier and
<br />Lender. Leader may make proof of toss if not made Promptly by Borower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shay be applied to restoration or repair of
<br />the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair n not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sum secured by this Security Imtrutnent, whether or not then due, with any access paid to Borrower. If
<br />Borrower abandons the Property, or does no 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 when
<br />the notice is given.
<br />Unless Lender and grower Otherwise agree in writing, any application of Proceeds to rind
<br />Postpone the due date of the monthly Principal shall not extend or
<br />Y payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Leader, Borrower's right to any insurance policies and proceeds resulting
<br />from damW to the Property prior to the acquisition shalt Pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />ti. Prhatvnllaa tttd Malnkaaaee of Pro /arty; Leasehopt$. Borrower shall not destroy, damage or substantially change
<br />the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, Borrower shall
<br />comply with the Provisions of the lease, and if Borrower acquires fee title to the
<br />merge unless Leader agrees to the merger in writing. Property, the leasehold and fa title shall not
<br />7. Prelecom of lAndee•s Moil, IN the sly; Merapge bwwmm. If Borrower fails to
<br />agreements contained in this Security Instrument. or there is a kgal Proceeding that may Perform the covenants and
<br />the Property (such as a proceeding in bankruptcy, significantly affect Lender's rights in
<br />prey pxobatq for condemnation or to enforce laws or regulations), then !.ender
<br />may do asd pay for whatever is necessary to Protect the value of the Property and Lender's rights in the Property. Lender's
<br />actions �Y include paying any sums secured by a Herz which has priority over this Security Instrument, appearing in court,
<br />Paying reasonable attorney's fees and entering on the Property to make repairs. Ahhough Lender may lake action order this
<br />paragrapA Lender does not have to do so. Any amounts disbursed by Lender under this paragraph c shall become
<br />addiaat debt of Borrower secured by this Security Instrument_ Unless Borrower and Lender agree to other terms of
<br />Payment. these amounts shall beat interest from the date of disbursement at the Note rate and shall be payable, with interest,
<br />upon notice from Lender to Borrower requesting payment.
<br />IVY
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