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MI
<br />102588
<br />$�,_ . ,
<br />LiNiFoitmCrivF :NA,!S Borrower and 1 -.r l_r : >.enantand Azreea%follows
<br />1. Payment of Principal and Interest: Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of anal interest on the debt evidenced by the Note and any prepayment and late charges clue under the N-,-',c
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ( "Funds ") equal to
<br />one-twelfth of: ta) yearly taxes and assessments which may attain priority otter this Security Instrument. (b) ycariy
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums: 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 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 institutton). Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applvrng the Funds. analyzing the account or verifying the escrow items, unless
<br />Lende-, 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 tie 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 13orrow•er any interest or earnings on 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 Kedged 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 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 ro 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 securea oy 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 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, ,o 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 to 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 hen in a manner acceptable to Lender, (b) contests in good
<br />faith the hen by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />yj
<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 Gen to this Security Instrument if Lender determines that anv part of
<br />the Property is subject to a lien which may attain priority Over this Scrunt7 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 abo,Te within 10 days
<br />of the giving of nonce.
<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 co,erage ' and any other hazards for which Lender
<br />x
<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 he chosen by Borrower sub)cci to Lender's approval which shall not he
<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 right to hold the policies and renewals. if Lender requires. Borrower shalt promptly g%%e to I..ender
<br />all receipts of p aid premiums and renewal notices. In the even of loss, Borrower shall gt%e 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 />s
<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 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 nonce is gtven.
<br />Unless Lender and Borrower otherwise agree in writing. any application of proceeds to principal shall not extend or
<br />postpone the due date ol'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 m- ,rance 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 bN this Security
<br />instrument immediately prior !o the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantiall .
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument n 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 unless Lender agrees to the merger in writing
<br />7, Protection of Lender's Rights in the Property; %fortgage Insurance. if 3orrower fink to perform the
<br />covenants and agreements contained in this Security instrument, or there is a legal proceeding that may significan;ly affect
<br />Lender's 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 Propert} Lender's iictinn% may viclude paying any sums secured by a hen which has priority oser thn Securits
<br />In!urument. appearing in court paying reasonable attorneys' fees and entering on the Properiy to make repairs 4kthough
<br />Lender may take action under this paragraph', Lender does not hase to do so
<br />Any aPiounts disbursed tey Lender inder Iins paragraph 7 shah hesome ad lIiwnaI deht ,:d nor rower scs utcal
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<br />u rit5 inv Iii mem Unless i .rroweI alit! 1. ender aer re i„ other per tlix of pa, n'Pnt tiled am, u 1 t silaii hC I ! 1 ,i t , ^t
<br />the c!air of dishurccnrent at the Note rite: and shall he pica le, with mteres!. upon nmice from I crdr- 'r 14--
<br />irqur.11119 pa- ,earn?
<br />MI
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