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8b, 100859
<br />L NFFOV4 COVENANTS Borrower and Lender coven mt and agree as follows,
<br />I. Psyaiterm of Prmcipa slid Iateresr Prelisymeut said Late Clam Borrower shall promptly pay w hen due
<br />the principal of aced interest on the debt evidenced by the Note and any prepaym rat and late charges due under the N o tc.
<br />2. Feads for Taxes ad Isttarswee. Subject to applicable law or to 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 />om-tw•elfth of (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />lasehold payments or ground rents on the Property, if any, (c) yearly hazard insurance premiums; and fd) %early
<br />mortgage insurance prermiunn, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data end 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 />sate agency (including Leader if Lander is such an institution)_ Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or veri4nng the escrow • items, uniess
<br />Lander pays Borrower interest an the Funds and applicable law permits Lender to mace such a charge. Borrower and
<br />Lender may agree in writing that interest shat 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 of the Funds. Lender
<br />stall give to Borrower, without charge. an annual accounting ofthe 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 ofthe Funds held by Lender is mat sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in etc or more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Security Instrument, Larder shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by sender. 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. AppGattion of Payt.ternts. Unkss 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 />`ale; third, to amounts payable under paragraph 2; fourth, to interest dues and last, to principal due.
<br />f. Charges; Lieait. 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 manner, Borrower shall
<br />pay than on time directly to the person owed payment. Borrower shall promptly furnish to Lander all notices of amounts
<br />to be paid under this paragraph. If Borrower snakes 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 uniess Borrower: (a)
<br />agree 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 Lander 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.
<br />S. Hazard laswasce. 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 politics 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 Lander 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 economically feasible and Leader'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 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 Properly 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 in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date ottee monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />tinder paragraph 19 the Property is acquired by Lender, Borrowers right to any insurance policies and proceeds resulting
<br />from dotage to the Property prior to the acquisition shall pats to Lender to the extent of the sums secured by this Secunt y
<br />Instrument immediately prior to the acquisition.
<br />G. Preurruiss ad 1Naintewwe 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 provision 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. Prateeti- of Leader's Riede is the Property; MortSW lasuraset. If Borrower fails to *+etiorm the
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly affect
<br />Ltruler't rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Properly and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by alien which has priority over this Securr,y
<br />lentrunsenr. appearing in court. paying reasonable attorneys' fees and entenng on the Property to make repairs Although
<br />Lender may take action under t his paragraph 7. Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower sec u•ed by tins
<br />Secanty instrument Unless Borrower and Lender agree to other terms of payment, these amounts -,hail bear
<br />the date of disbumemert at the %ote rate and shall be payable. with interest. upon notice from Lender R:, -* Arr
<br />?equnttng payment
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