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<br />87 :103830
<br />COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the
<br />1.
<br />principal of antd 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 to
<br />r Lender on the day monthly payments are due under the Note, until the Note is paid in full, it sum ( "Funds ") equal to
<br />orte• twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold
<br />payments orground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance
<br />premiums, if any. These items arecalled "escrow items." Lender may estimate the Funds due on the basis of current data and
<br />reasonable estimates of future escrow items.
<br />The Funds shall 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. Lender
<br />may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays
<br />Borrower interest on the Funds and applicable law permits Lendeo to make such a charge. Borrower and Lender may agree in
<br />writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law 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 the
<br />Funds was made. The Funds 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 />dote 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 to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient hen due, Borrower shall pay to Lender any
<br />u, pay the escrow items w
<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 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 application
<br />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 be applied: first, to late charges due under the Note; second, to prepayment charges due under the
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<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, ar principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable it) the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Burrower
<br />shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on
<br />time directly to the person 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
<br />the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Burrower: (a)
<br />agrees in writing to the payment of theobligation secured by the lies to a manner acceptable at Lender; (b) contests ingood
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion e,p, rate at
<br />prevent the enforcement of the lien nr 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 l nstrumem. If Lender determines that any parr of the
<br />Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice
<br />identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the
<br />giving of notice.
<br />5. Hazard Insurance. Burrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss 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 fur the periods that Lender requires. The
<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 be acceptable to Lender and shall include a standard mortgage clause. lender
<br />shall have the right ro hold the policies and renewals. If Lender requires, Borrower shall promptly give to 1 -ender all receipts
<br />of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and
<br />Leader. lender may make proof of loss if not made promptly by Burrower
<br />Unless Lender and Burrower 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 not lessened. If the
<br />restoration or repair is not economically feasible or lender's wcurity would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether ur tot then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within i0 days a notice from Lender that the insurance carrier has
<br />Ioffered
<br />to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the
<br />Property or to pay sums secured by this Security Instrument, whether or not then due. The i0 -day period will begin when the
<br />notice is given.
<br />Unless Lender and Borrower otherwise agree in w riri,g, any appllcanon of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred it) in paragraphs I and _' or change the amount cut the payments, if
<br />under paragraph 19 the Property is acquired by lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass n) lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; LeaseWds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee tide to the Property, the leasehold and
<br />fee 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 covenants
<br />and agreements contained in this Security Instrument, or there is a legal proceeding chat may significantly affect Lender's
<br />rights in the Property ( such Asa proceeding in bankruptcy, probate, for condemnation or tuenforce laws ur regulations), then
<br />Lender may do and pay for whatever is necessary to protect the value of the Property anti Lender's rights in the Property.
<br />Lendef s actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in
<br />court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action
<br />under this paragraph 7, Lender doers not have ro tit) so,
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<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower settacd by this
<br />Security Instrument. Unless Borrower and lender agree to other terms tot payment, these amounts shall hear interest trmn
<br />the date of disbursement at the Note rate and shall he payable, with interest, upon notice frena fender ut Btoo lwet retlucsteltg
<br />payment.
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