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UNMMUCOVEISANITS Borrower and Lender covenant and agree as follows: 86- 100444
<br />I. Pityseent of Principal and Interest; Prepayinent and (.ate Charges. Borrower shall promptly
<br />. pay when due
<br />the prinapal ofand interest on the debt evidenced b% the Note and any prepayment and late charges due under the Note.
<br />2. 1 Floods for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pity
<br />to Leader on the day monthly paymcnts are due under the Note, until the Note is paid in full. a sum ( "Funds ") equal to
<br />one-twelfth,Df- W early taxes and assessments which may attain priority over this Security Instrument: (b) yearly
<br />lewsebold.payments or ground rents sect the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />tnortg* insurance premiums, if any- These items are called "escrow items" Lender may estimate the Funds due on the
<br />basis otoorent data acid 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 iflLerideris'such an institution). Lender shall apply the Funds to pay the escrow item%.
<br />Lender may not charge for holding and applying the Funds; analyzing the account or verifying the escrow items, &:nk-%%
<br />Lender pa" Borrower intertz-A on the Funds and applicable la* permits Lender to make such a charge. Borrower 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 not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shA give to Borrower, without charge, an annual accounting of the Fund, showing credit% and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as addil ional 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 escrovy items when due, the excess shall be,
<br />at Borrower 'soption. either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender 1, not %tifficieni.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 />I 1pon payment in full of all sums secured by this Security 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 31 the time of
<br />application 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
<br />Note; third. to amounts payable under paragraph 2; fourth, to interest due-. and Iasi, to principal due.
<br />4. ChargM Liens. Borrower shall pay all taxes, assLssments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Securit y 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 manner. Borrower shall
<br />pay them on time directly to the person owed payment. Borrower -IJI 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 c%idcncing 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 the 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 Property is subject to a lien which may attain priority over this Security Instrument. Under 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 />5. HazarilInsurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the ter-in "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 sut�jeci to Lender's approval which ,hall not be
<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 .hall prompth . gne to Lender
<br />all receipt-, of paid premiums and renewal notices. In the event of lens. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss Knot 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 not lessened- If the
<br />restoration or repair is not economically feasible or Lender's security . would be lessened, the insurance proceeds shall be
<br />applied to the -urns 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 />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 cutris secured by this Security Instrument. whether or not then due. The 30 -day period will tiepin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not cmendoi
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. 1 f
<br />under paragraph 19 the Property is acquired by Lender. Borrower's right to any insurance policies and Proceeds resulting
<br />firm damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured t,.% this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation mW Maintenance of Pnijoerty. Leaseholds. Borrower shall not desirm. damage or suhstannail
<br />change the Property. allow the Property to deteriorate or commit waste. If this Security Instrument is on a lcawhold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lendees Rigifts in the Prolierty, Mortgage Insurance. if Borrower fails to perform the
<br />covestants and agreements contained in this Security Instrument. or there is legal proceeding that may !glllf1c.ltl11% affect
<br />Lomde., tights in the Property (such as a procceding in haniLruptcl., probate, for condemnation or to enforce laws or
<br />regulatiom), then Lender may d(, and pay for whatever is necessary to protect the value of the Property aloof lender', rights
<br />in the Property. Lender's ac.ttmis may include paying any sums -secured by a lien which has priority OWT 117I6 SC,:UT1lX
<br />Infarument, appearing in court. paying reasonable attorneys' fees and tiller-ing on the 1'ropem to wakc rcpair% Although
<br />LendeTmay fake action under ibis paragraph 7, Lender does not have to do %o
<br />Any arnounis disbursed by Lender under this paragraph 7shall txroon)C 3dol1tllIll.'J1 dChl Ill BOr-11'"Vf 'I'ITUd tly till'
<br />`Security Iffittlinit.-Ittl Unless WITMINCT and tender Jglt:C 10 other terms I If rdy MC11 I I flCkV ;Jtl I, I % I l l I I NIIJ! I N%IT I I) I crest 'H 11111
<br />the date of djvblJfsrMCJJt at Itit' 'i()Je tat, and %Ilifl] he pjvAt,lc. %;jill lnl•lcst. up"ll 11'.11,C !ToTl) lclld,-s
<br />requesting, payment
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