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ill86
<br />-- 100751
<br />U'IFOP.MICOVENANIS Harrower and Lender covenant and agree asfolkoac:
<br />I- Payment of Priecipl and to treat; Prepayattat sad Late Charges. Borrower ,hall promptly pay when due
<br />the principal of artd interest on the debt evidenced by the Note and any prepayment and late charges due under the Neste.
<br />2. Ftntdc for Taxes and tasairance. Sull*t to applicable law or to a written waiver by lender. Borrower Shall pay
<br />to Lender on the day monthly payments arc due under the Note. until the ',,tire is paid in full. a cum ( 'Funds ) equal to
<br />one- twelfth of: (a) yearly taxes, and assessments which may attain priority over thi, Security instrument IN yearh
<br />(d)
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<br />leasehold payments or ground rents on the Property. if any; (c) yearly hazard insurance premiums; and yearly
<br />mortgage insurance premiums, Wally. These items are called "escrow items." lender may estimate the Funds due on he
<br />basis of current data 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 nr
<br />state agency (including Lender if Lender is such an institution) tender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, anaiyzine the account or verifying the oscmw items, unless
<br />Lender pays Borrower interest on the Funds and applicable law 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 />shall give to Borrower, without char :,m 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 securty' 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 Borrowers 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 full 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 Payinents. Unless applicable law provides otherwise, all payments received by lender under
<br />paragraphs 1 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 last, to principal due.
<br />4, Charges; Liens. 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 ? 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. 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 unl ss Borrower: (a)
<br />agrees in wri ting to the payment of the obligation secured by the lien in a manner acceptahle io 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 />lien
<br />prevent the enforcement of the lien or forfeiture of any part of the Property: or (c) secures from the holder of the 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. 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.
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<br />5. Harard limuraace. Borrower 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 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 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 not lessened. If the
<br />restoration or repair is not economicaliy feasible or Lender's security would be lessened, the insurance proceeds shall be
<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 />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 sutras secured by this Security Instrument, whether or not then due. The 3o -day period will begin
<br />when the notice 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 2 or change the amount of i 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 Security
<br />Instrument immediately priortothe acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. 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 title to the Propem, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Leader's Rights in the Property. Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contain--d in this Security Instrument, or there is a legal proceeding that may signaticanth affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy. probate, air condemnation or to enforce WAN or
<br />regulations), then Lender may do and pay for whatever I, necessary to protect the value of the Property and Lender's right
<br />in the Property. Lender's actions may include paying any sums secured by a !ten winch has priority .,ver tun, Secuim,
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<br />Instrument, appearing in court paying reasonable attorneys liken and entering on the Property to make repair, Akhough
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<br />Lender may take action under this paragraph 7. Lender does not h.tve to du so
<br />Any amount, disbursed by Lender under this paragraph " shall lxromr adds :< +r,al debt of Borr nw er ,.•road by tilt,
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<br />Security Instrument Vniess Borrower and Lender agree to other teens •:,f pity meat, ihe,e amount had fear iwerc,t trill
<br />the date Of disburwrnent it the \rte rate and ,haii he ; ey .able. unh niicrest, up"T! at,tnr 1—in I mare t" lio —'s%cr
<br />requesting payment.
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