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86 1()1t336
<br />UWORN40A NA" IS. Borrower and Lender coscnant ana Agree as fokow>
<br />1. Payment of Principal and Interest; Prepayment and Latc Charges. Borrowe, Shall pronmptl, pat w%hvll clue
<br />the principal of and interest on the dehi evidenced by the \o>te aril any picpavrnctn and We Shane, clue wider the Notch.
<br />2. Funds for Taxesand Insurance. Subject ico applicable law .rr to a written %%m%cr by Lender, B- arum er shall pare
<br />to Lender on the day monthly payments are due under the Note. until the Nate r. paid in full. a stun (" Funds") .•qual m
<br />one- rwelfth of: (a) yearly razes and assessments which m u
<br />ty at7.n priority over this Securny Instrument: ih) Yearly
<br />leasehold payments nr ground rents on the Property, if am; (c; yearly hazard insurance pRantuniN: and (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender map estimate the FuudS due on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accrntnts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lander is Such an institution). lender shall apply the Funds to pity time escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying time escrow 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 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 Borrttwcr any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credit% and debit. 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 clue, 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 shalt 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. Fluids held by Lender at the tittle 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 recei%ed by Lender under
<br />paragraphs 1 and 2 shall use applied: fiat, to late charges due under the Note: second, to prepayment charges title 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 pap these obligations in the manner provided in paragraph 2. or if not paid in that manner, lorrower 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: ia)
<br />agrees in writing to the payment of the obligation secured by the lien in it manner acceptable u? Lender; (h) contests in J!ood
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate Io
<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. 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 />5, Hazard Insurance. Borrower shall keep the impro %ements now existing or hereafter crccred ou 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 winch shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include it 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 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 time
<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 riot answer within 30 days it nofiec 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 (Inc. The 30 -dap period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds n+ 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 the 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 prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not deslio.y, damage or sobstalviAh
<br />change the Property, allow the Property ro deteriorate or connumt waste. If this Security hmstnmme 11 is on a le :rseholkl.
<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 riot merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage 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 affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy. probate, for condermtation of to ent'orce laws nr
<br />regulations). then Lender may do and pay for whatever is necessary to protect the value of the iroperty and Lcndcr's right,
<br />in the Property. Lender's actions may include paying any sums Secured by a hen which has pnorm osci this Securny
<br />Instrument, appearing in court, paying reasonable attorneys' lees and entering on the Property to make repairs Although
<br />L lender may take achon under the paragraph ?
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