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86- 101417
<br />Uti1FORM CO), ENANTe Borniw'er and Lender covenant and agree as fall; w,:
<br />1. Payment of Principal and Interest Prepayment and Late Charges. Borrower ,stall prornpik n:tv when due
<br />the principal :)rand mirres; on the debt cvidenced by :..e Note and any prepai riert and late Ch=arges due under iric No!c.
<br />I. Fug for Taxis and Insurance. Sub-tect to ap plicable law :tr to a written wan eT bs Lender. Borrower shuts pas
<br />to Lender or, she day momlily payments are due under the Note. untie tie Note is paid in full. a sum ; Funds) equal t,,
<br />on-c twelfth it. ea} yearly taxes and ussessm^nts which may attain priority y r this Security Instrument_ the v arty
<br />ieasehoid payments or ground rents on the Property, if any: (c) yearn hazard insurance premiums. and (d) yearly
<br />mortgage insurance premiums, if any- These items are called "escrow items." Lender may estimate the Fund: due on the
<br />basis of current data and reasonable estimates of f uture 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 />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender :o make such a charge. Borrower and
<br />Lender may agree in writing that interest shall he 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 R -rower any interest Or the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the funds showing credits and debits to Ili-, Funds and the
<br />purpose for which each debit to the Funds was made. The Funds arc• pledged as adantonal security fort he 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 pnor to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess ,hall 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 m one or more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Security Instrument. Leader shall promptly refund io Borrower
<br />any Funds held by Lender. If )rider 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. _44*11ication of Payments. Unless applicable law provides otherwise. all payments received by Lender under
<br />paragraphs I and'_' shall he applied: first, to late charges due under the Note: second, to prepayment charges due under the
<br />Note: third, to amounts payable under paragraph'_: 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 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 *.he payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: ! a i
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender: (b) contests to food
<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 hoider of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that anv par of
<br />the Property is subject to a lien which may attain priority over this Security Instrument. Lender may gne Borrower a
<br />notice identifying the lien. Borrower shall satisfy *.he lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Propert
<br />insured against loss by are, hazards included wnhin the term "extended coverage" and ary other hazards for w hich 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 appro%ai which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall he acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the Tight to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lend
<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 prompth by Borrower.
<br />Unless Lender 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 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 ?0 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 0-da_v period will beam
<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 mont lily payments referred to in paragraphs 1 and 2 or change the amount of the payments. It
<br />under paragraph 19 the Property, is acquired by Lender. Borrower's right to any insurance pohcies 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 />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or suhstaritiaily
<br />change the Property, allow the Property to detenorate or commit waste. It !his Secuntt instrument is on a Icasehoid.
<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 io Elie merger m writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. It Borrower 1;111s to perll,rin the
<br />covenants and agreements contained in this Security Instrument. r,r !here is a legal procecdinp thai na s sigtuficantk )fleet
<br />Leader's rights in the Property (such as a proceeding in bankruptcy. probate, for :ondei ' tron ;,r t,� rntor:c l:nss :
<br />regulaaonsi, then Lender may do and pay for whateN er is necessan to protect tic value of the Pronert% )rich Lender • richis
<br />in he Property. Lenders actions ma_: include paying any Sums secured hs s hen %OlCtl %a, rrlorttc .,,rr 7111s Sect!tlt%
<br />lnstrument, appearing m court. paying reasonable tst[nrneys' fees and entering .,n !tier I'mpert tr nI.ikv e[ is h asst
<br />Lersder may take action under !his paragraph Lender does not haze wdoss, i
<br />%ny amounts disbursed hN L.rirder under this par ig aph - shai r nine r iii. t! 1 b;1r1,1X%C7 e c' ,
<br />Seyurnytnatrumen; LIdes,. Borrower and Lender _.ee ,,:ncr!err i;,eyncis. 71
<br />the is ,1 ; ut c rsrriienl a- the 'jute retr end •.1 a: Nei c%:th ,r,!r -, t' _ . , r.i1 i,•. s i �'
<br />•equrs trig :aim ..
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