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UN1FOR.%1COVL%A.%h flog rower and Lendercmenantaridagrcca ,fldious: 86— 102386
<br />1. Payment of Principal and Interest Prepayment and Late Charges. Borrower ,hail pn,rnpiI% pay when due
<br />the principal of and interest en the debt evidenced by the Note and any prepayment and late charge• due under the Note
<br />2. Funds for Taxes and Insurance. Subject t o applicable law orioa% vrittenw aicerbylender. Dot rowrrshallpay
<br />to Lender on the day monthly payments are due under the Note, until the time is paid in tall. a sum t "Fund," i equal io
<br />one - twelfth of-. (a) yearly taxes and assessments which may attain priori"' over ilii. Security lnst unient: (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiunn: and (d) yearly
<br />mortgage insurance premiums, if any. These items are called .escrow items." Lender may estirn:aic the Funds due on the
<br />basis of current data and reasonable est imates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of wliich are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Fund, to pay the c,croyy 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 to "take such a charge. Borrower and
<br />Lender may agree in writing that interest shall he paid on the Funds. L'r lcss 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 charge, an annual accounting of the Funds showing credit, and dehits to rite Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the stuns 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 iterns. shall exceed the amount required to pay the escrow items when due. the execs; ,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 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 Burro%%cr
<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 Nroperty 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 Payments. 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. 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 amounis
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower %hail 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: tat
<br />agrees in writing io 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 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 aho%e a ithitt 10 days
<br />of the giving ofnotice.
<br />5. 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 % m1i Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the period% that Lender requires The
<br />insurance carrier providing the insurance . :fall be chosen by Borrower subject to Lender's approval whist[ 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 itl Lender
<br />all receipts of paid premiums and renewal notices. in the event of loss. Borrower shall give prompt notice it, Tile m,urance
<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 Ics,ened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds ,hall he
<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 [lie 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. 1 -he 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 ,hall 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. II'
<br />under paragraph 19 the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds rexdting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Secur ty
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance (if Property; Leaseholds. Borrryyer shall not destroy, damage or suhstannall\
<br />change the Property, allow the Property to deteriorate or cornmit waste. If this Senn[ Instrument is on a 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 unle..s Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; : mortgage Insurance. If Borrower IMI, 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 condemnation it to enforce I:ocs �,t
<br />regulations). then Lender may do and pay for whaleyer is necessary to protect the value of the Vroperty and Lender's n his
<br />in the Prolxrly. Lender's actions may include paying, any suits secured by a hen which hats prmruy oycr 11.1, Se.uruy
<br />Instrument, appeanng in court, paying reasonable attorneys' fees and enterntg on the Propcl n to make repairs :ylthoueh
<br />Lender may take action tinder i tits paragraf h .. Lender does not have io do so
<br />Any anutunts disitured by, Lender tinder this p it agiaph I hail heconte adduwii,d J 1 I nr fiiu Wy%r; s 1"'d he ;errs
<br />Security Instrument Unless Borrower and (.ender agree to other terms t paytncrt 1 hc.c 11 ills .h ill I .t tut r r nr.
<br />the isle of disbur%cment at the Aotc rate and ,11.111 br payable. u101 lyurtsl. t r ",1 .. 'r „�.. , c 1Jr� It •1..•w�1
<br />requuUngpnymcnt
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