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F
<br />86-- 102512
<br />I IN IV( 1aM CAYI -NAN is llorrnwer and Lender cos -rnre ! ew i I ag ree r% f„111e4%
<br />1. Payment of Principal and Interest, Prrytaymrnl and late Charges. 11 —rowe, shall promptly pay wit n :ktr
<br />the principal ofand interest on the deM evidenced by Ibe Norte and any prepayment and lave ch.ogr%dur under the Note
<br />2. }anWq for Taaes and iwasranee. Subject to applicable law or to a writ is - '., cr by Lrnder, Br rrrow•r.'r shall pay
<br />to Lender on the day tmnthly payments are due under the Note, until the Note I% pa:(o tr, full, a sum (••hinds ") equal If)
<br />one - twelfth of (a) yearly taxes and a%%cs%mrnts which may attain priority over Iht% Securely instrument, (h) yearly
<br />leasehold payments or ground rents on the Property, if any. (c) yearly hazard insurance prrm tme and (d) yearly '
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow items
<br />The Funds shall he held to an institution the deposits or accounts of which arr insured or guaranteed by a federal or
<br />Note agency (including Lender d Lender is such an institution). Lender shall apply the Funds In pay the escrow Items.
<br />Lender may not charge for holding and applying the Funds, ann(yzing the account or verifying the rwrow 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 interesl shall he paid on the Funds Unless an agreement is made or applicable law
<br />requires interest to be paid. Lender shall not toe required to pay Borrower any interest or raining% nn the Funds (.ender
<br />shall give In Borrower, without charge, an annual accounting of the Funds showing credits and dchit% to the Funds and the
<br />purpose for which each dchit to the Funds was made. The Fund% are pledged as addtrrnal %e( univ for the sums «cured by
<br />this Security Instrument.
<br />if the amount of the Funds held by Lender, together with the future monthly payments or Funds payable print to
<br />the due dales of the escrow items, shall exceed the amount require(] to pay the escrow items when dur, the excess shall tic.
<br />at Borrower's option, either promptly repaid to Borrower or credited to florrnwer nn monthly payrorni% of funds if the
<br />amount of the Funds held by Lender n not sufficient to pay the escrow ilcan whir, due. Horrower shall pay to Lender aov
<br />amount necessary In make up the deficiency in one or more payments a% 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 Prnpeny 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. Aplieatlon of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall he applied: first, to amounts payable under paragraph 2; second, to interest
<br />due; and last, to principal due.
<br />1. Cherpes; Lletw. Burrower shall pay all taxes, assessmcnls, charges, lines and impositions attributable to the
<br />Properly 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 entices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />reeetp isevidericing 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 ohligalion secured by the lien in a manner acceptable to Lcnder, (h) contests in good
<br />faith the lien hy, or defends against enforcement or the lien m, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forreilure of any part of the Property: or (c) secure- from the holder of the hen an
<br />agreement satisfactory to Lender suhordinatmg the ben 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 ur take one or morr of the actions set forth above within 10 days
<br />of she giving of notice.
<br />S. 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 anv other hazards for which Lender
<br />requires insurance. This insurance shall he maintained in the amount% and for the period]% that Lender regtnres The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not he
<br />unreasonably withheld.
<br />All insurance police" and renewals shall be acceptable to Lender and shall include a stan(lard mortgage clause.
<br />Lender shall have the right In hold the pohci" and renewals. if Lender requires, itorrower 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 itorrower otherwme agree in writing, insurance procemis shall to applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically dca%thlc and Lender's security t% not lessened If the
<br />restoration or repair is rent economically feastble err Lender's security would he Irs%rned, the insurance pro,,red% shall Ie
<br />applied to the sums secured by this Security Instrument, whether err not elicit due, with any excess paid to Hormwer 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 Property 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 Leader and Borrower otherwise agree in writing, any application of prnceeds 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 19 the Property is acqu red by Lender, Borrower's right to any Insurance policies and proceeds resulting
<br />from damage to the Properly prior l o t he acquisition shall pass to Lender to the extent of the sums secured by t III% Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; leaseholds. Borrower %hall not destroy, damage or %uhstantially
<br />change the Property, allow the Property to deteriorate or commit waste if this Security fnstrument Is ou a irasrhold.
<br />Borrower shall comply with the provisions of the lease, and if narrower acquires fee title to the Property, the Iensehold and
<br />fee title shall not merge unless Lender agrees to the merger in wri ting.
<br />7. Protection of Lender's Rights in Ike Property; Mortgage insurance. if Horrower fail% to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly Orrct
<br />Lenders rights in the Property (such as a proceeding in bankruptcy, probate• for condemnation err to enforce laws or
<br />regulalions), then Lender may do and pay for whatever is necessary to protect the valor of the Property and Lender's rights
<br />in the Properly. Lender's actions may include paying any sums secured by a lien which has priority nscr this Security
<br />Instrument, a (rearing in court, paying reasonable attorneys' fees and entering on the Property to make repaim Although
<br />Lender may lake action tender the- paragraph 7, Lender does not have In do %n
<br />L Any amounts dishumet by Lender under this paragraph 7 .hall hecmne additional debt of Borrower secured by tht%
<br />Security Instrument. Unless Borrower and Lender agree to olhcr terms of payment, thew amounts shall brat Brines from
<br />d
<br />the date of disbursement at the Neste rate and shall he payable, with interest• up,Iai non(c from Lrnder in linrrowrr
<br />r`
<br />op¢
<br />requesting payment
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