UNWORM COVENANTS. Borrower and Lender covenant and agree as follows: 09- 100-115
<br />1. Payanent of Macipal ad IRtasat; Prepaytment and Late Chi. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Faads for Tastes and insurance. Subject to applicable law or io 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 full, a sum (."Funds") equal to
<br />one - twelfth of (a) yearly taxes and assessments which mac attain priority over this Security Instrument: (b) yearly
<br />leasehold payments or ground rents an 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 may estimate the Funds due on the
<br />basis ,of currentdata and 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 hems.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower imer•est on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shalt be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to be 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 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 credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when 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 foil 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, Lender 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 Paytnenis. 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 th,
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. CluuV!s; Lieu. 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.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that mariner. 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. 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 t he obligation secured by the lien in a 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. If' Lender determines that any part of
<br />the Propem is subject to a lien which may attain priority over this Security Instrument. Lender may give Borrower a
<br />notice identifying the lien. 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 />S. Hazard laintramee. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against lass 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 he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause
<br />Lender shall have the right to hold the policies and renewals. If Lender requires. Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss. Borrower sha11 gave 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 IN not lessened If the
<br />restoration or repair is not economically feasible or Lender's security would be lessered, the insurance proceeds shall tx
<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 lO 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 rn wri nng, any apphcatIon of proceeds to principal shall nor extend ur
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of t he 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 to Lender to the extent of the sums secured by this Secuntv
<br />Instrument immediately prior to the acquisition.
<br />b. Preservation ad Maintenance of ProperV; Leaseholds. Burrower shall not destroy, damage or suhstant'ally
<br />change the Property, allow the Property to deteriorate or commit waste. If till. Security Instrument Is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fec'file tc life Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger rn wnttng.
<br />7. Protection of Lender's Rights in the Property; Mortgatte Insurance. If Borrower lads to txxforni the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that mac significanih affect
<br />Lender's rights in the Property (such as a proceeding m bankruptcy, probate, for notdeninauon or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the cakrc of the Proper•ry arrd Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a hen which has prumty over this Security
<br />Instrument, appearing in court, paying reaxmahle attorneys' fires and entering on the Property to make repairs Although
<br />Lender may take action tinder this paragraph 7• Lender does not have to do so
<br />Any amounts disbursed by Lender under this paragraph ',,hall lxrcome additronai debt of B„rie,wer secured by t his
<br />Security Instrument Unless Borrower and I.rfoder agree to ether terms of paynie•ni, ifit- "- am,ovws shat] tzar interest liner
<br />the date of dishurwment at the %or,. rair anti shall IV paydhlc. with u'trre.r. upon n ;r,i,r• la,rr! I ceder r,� Bunn ,aer
<br />rcquestrng payment
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