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UNiF°ORM f;UVFNANTS. Borrower and Lender covenanr And agree as follows: 7 106534
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<br />t. Payment of Principal and Interest; Prepayment And Late Charges, Borrower shall promptly pay when due thp
<br />principal of and interest on the debt ev idetued by The Note anti any prepaymwnt atul Note.
<br />2, Ponds for T loam and Insurance. Subject 10 , appliable law or no A written waiver by L ceder, Borrower shall pay (o
<br />Lender on the day monthly poyownts Are due under the Now, until the Note is paid in full, a sum o'•Funds ") equal to
<br />otae- twelfthof: (a) yearly taxes and assessments which may arram Priority over this Security Instrument; th) yearly lea hold
<br />payments or ground rents oo the Property, if any; (c) yrarly hazard insurance premiums; and tdi yearly mortgage insuratxsr
<br />premiums, if any. These items are called "escrow acme." bender may estimate the Funds due on the basis of current data Aral
<br />reasonable estimates of future escrow items,
<br />The Funds shall be held in an institution the deposits or accounts of which are insurer1 or guaranteed by a federal or
<br />state agency (including Lender if Lender is such An institution). lender shall apply the Funds to pay fhecscrow icrrtts. Lender
<br />may nor charge for holding and applying the Funds, analyzing the account or verifying 1110 escrow items, unless fender pays
<br />Borrower interest on the Funds And applicable law permits Lender it) make such if 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 too he paid,
<br />Lender shall not be required ro pay Borrower any interest or earnings on tic Funds. Lender shall give to Borrower, without
<br />charge, an annual accounting of the Funds showing credits and debits to file Funds and the pure ose for which each dchit 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 />due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be. a1
<br />Borrower's option, either promptly repaid to Borrower or credited to Borrower On monthly payments of Funds. If the
<br />amounr of the Funds held by Lender is nor sufficienr to pay the escrow irems when due, Burrower 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 cO Burrower any
<br />Funds held by Bender. 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 m rite 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 tinder
<br />paragraphs i and 2 shall be applied: first, to Lae charges due under the Notc; second, too prepayment charges due under the
<br />Nate; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal clue.
<br />4. Charges; Liens.. Burrower 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. Burrower
<br />shall pay these Obligations in the manner provided in paragraph 2, ur if not paid in that manner, Burrower shall pay them on
<br />time directly to the person owed payment. Burrower shall promptly furnish to Lender all notices of amounts rube paid under
<br />this paragraph. If Burrower makes these payments directly, Borrower shall prumpcly furnish it) 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 the obligation secured by the lien in a manner acceptable to Lender, (b) ctowests 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 ur forfeiture of any parr of the Property; or (c) secures from the holder Of the lien as
<br />agreement satisfactory it) Lender subordinatingthe lien to this Security Instrument. if lender determines that any part of the
<br />Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Burrower a notice
<br />identifying the lien. Burrower 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 />S. 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 be maintained in the amounts and for 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 Lander 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 fender 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 />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 econurnically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall Ix.-
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Burrower. 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 the
<br />Property or it) pay sums secured by this Security Instrument, whether or not then due. The 30 -day period will begin when the
<br />fmtice 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 _' (it change the amount of the payments- If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and pnceeds 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 Maintenance of Property; Leaseholds. Borrower shall nut destroy. damage Or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security InstnOnent is On A least:hold,
<br />Burrower shall comply with the provisions of rile lease, and if Burrower acquires fee title to rile Prnperry, rile leasehold and
<br />fee title shall nor merge unless lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If BOrrawer 'rails ro pxrrform the cotenants
<br />and agreements contained in this Security Instrument, or there is a legal prO(CComg that may significantly ativ.r I.etider's
<br />rights in the Property (such as a prmceding in bankruptcy, probate, for condemnation Or nocthforce laws of regulauons o, then
<br />Lender may oor And pay for whatever is necessary to protect rile value of the Property and Lender's rights to the I'mperry
<br />Lender's Actions may include paying any sums secured by a lien which has priority over this Security lnsttamnem, appmaring in
<br />court„ paying reasonable atrorrteys' fees and entering on the Property no make repairs Although Lender may rake action
<br />under this paragraph 7, Leader doors nut have to do SO.
<br />Any amounts disbursed by Bender under this paragraph '' shall become additional debt of Bann,wc•r secured by this
<br />Security Instrument. Unless Borrower and Leraler agree it) other terns of payment, rhese amounts shall Ixr.tt interest from
<br />the date of desburwinvot at the Note rate and shall he payable, with interest, apron notice from Bender io Borfower requesunp;
<br />payment.
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