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i 1NuzoRm Cov£NA%'Ts Borrower and Lender covenant and agree" follows: j 100898
<br />I. past a/ priac*al tttsd Petwysewt and Late Charges. Borrower shi;il prompt pay when due
<br />the principal of and interest on the debt evidenced by the Nate and any prepayment and late charges due under the Note.
<br />2. LRasda fir Tsttes nail llasurasee. Sub)eCt to apphcahle law or to a written waiver by Lender. Borrower shall pay
<br />to Lender ttn the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
<br />one-tweet Of.. (a) yearly taxes and assessments which may attain priority over this Security instrument; (b) yearly
<br />lttasehoid payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums: and (d) yearly
<br />mortgage iii uraince premiums, if i my. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis ofeurreat dote and reasonable estimstes 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 items.
<br />Leader may not charge for holding and applying the Fonds, analyzing the account or verifying the escrow items, unless
<br />I.eoder pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Leader may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to he paid, Lender shall not be required to pay Borrower any interest or earnings an 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 futuremonthly 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 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 Paymeats. 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 last, to principal due.
<br />4. Ltiarges; 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 2, 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 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 frtrfciture of any part of the Property: or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subc-dinating 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 satisfv the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />3. Hazard Insurance. 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 he maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower sublect 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 shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof oflons 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 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 L!nser that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use t he proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not there 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 of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />under paragraph i9 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 prior to the acquisition.
<br />f. Prewrvation sad Mainkmaaee of Properly; Leasebtdds. Borrower shall not destroy, damage or substantiaiiy
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on e leasehold,
<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 Leader's Riplirts is the Property; Mortgo6te Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly afrec:t
<br />Lender'% 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 Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a hen which has pnorny over this Secunt}
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on ltie Property io make repairs .Alihough
<br />L Lender may take action under this paragraph 7. Lender does not havr u1 do so.
<br />Any amounts dishumcd by Lender under this paragraph 7 shall become additional dt•hi A Borrovei wi:ured by i his
<br />Security Instrument. Unless. Borrower and Lender agree to other terms of pavnient, these amounts shall that Interest film
<br />the date <if disbursement at the Note rate and shall bw p ayat+lc, with nl!rre \l. 1111111; 11i 1!ICe iii❑?'. I',TIO I If' BOrrtlwe!
<br />requesting payment a
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