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<br />tJNIFORM C0YENAN*M Borrowerand Lendercovcnam and agree as follows: 87-103o,18
<br />I. Payment of Principal and Interest; Prepayment and Late ('harges. Borrower shall promptly pay when due
<br />the principal of and interest on thedcht evidenced by the Note and any prepayment and late charges due under file Note.
<br />E. 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 fill, a sum ( "Funds'•) equal to
<br />one- twelfth of (a) yearly taxis and assessments which may attain priority over this Security Instrument: (b) yearly
<br />lcmbc4d payments 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 "escrow items." Lender tnav 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 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 />L.endcr may not charge for holding and applying the Funds, analyzing the account or verifying tfte escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. fkrrrower 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 be paid. Lender shall riot 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 Fluids and the
<br />purpose fir 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 credned to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow nems when due. Borrower shall pay Io 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 h% 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, Lender shall apply• no filter
<br />than immediately prior to the sale of the Propene or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by thts %murity Instrument
<br />3. Application of Payments. unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 shall he applied: first, too 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. Charms Liens. Borrower shall pay all taxes, assessments. charges, fines and impositions attributable to the
<br />Property which may attain prionty over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided ur 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 Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly. Forrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over thus 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; (h) 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 />agretment satisfactory to Lender .subordinating the lien to this Security instrument. If Lender determines 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 />notice identifying the lien. Borrower shall satisfy the hen or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />S. Hazard inasurance. Borrower shall keep the amprovements 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
<br />insurance carrier providing the insurance shall tie chosen by Borrower subject to Lender's approval which shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Leader shall have the right to hold the policies and renewals. If tender requires, Borrower shall promptly give to Iender
<br />all receipts of paid premiums and renewal notices. In the event of Inns, 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 he applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is riot lessened. If the
<br />restoration or repair is not t.•cnnomically feasible or Lender's security would be lessened, the insurance proceeds shall he
<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 />t.4cred to settle a claim, then Lender may collect the insurance vroceeds. 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 />Unit—,% 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 />paragraph 19 the Property is acquired by tender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisitnon shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Pftwrvatim and Msintcaan"of Property; Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Property• allow the Pruperty to deteriorate or commit waste. If this Security instrument Is on a leasehold,
<br />Borrower shall comply with Cite provisions of the lease, and if Borrower acquires fee title to the Properly• the leasehold and
<br />fee title shall MA merge unliss Lender agrees to the merger to writing.
<br />7• of Leader's Rights in the Property; MoartaW
<br />coy s and agreements contained in this Security Instrument• or there t is a legal e proceeding that rna, signillc�antlyr;aflect
<br />t 's rights in the Pttrroerty (such as a proceeding fit bankruptcy, probate, for condetnnanon or to enforce laws or
<br />r ), t L.endet may doand pay for whatever Is nevessar) tri protect the calve of the 1'n,pe ray end Lender's ileitis
<br />en the Properly. Lender's actions may include paying any sums secured by a iren %Ink. T h;as priority over this Ss runty
<br />Instrument, a arinR in court. paying reasonable attorneys' fees and entering „11 the Properly to make repairN Allhough
<br />1-ctWcv may take action under this paragraph 7, Lender doe, not have to do su
<br />Any am*aoountsdizNned by Lender under this paragraph 7 shall bcconoe additional dehi of ii, +rro%er secured by this
<br />S only Inatru t I?nlex=a Borrower and Lender agree to other terms of paytnetit. these:arn,,unts shall bear inieresl Irene
<br />the state 14 dribur rnent am the %file rate and shalt be payable. with Inueresr, ulH,n notlre from ! erudrr t„ Boironrr
<br />req tng payment
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