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86- 102870
<br />Ifxtlf'(IRMCOVI WAN T% Borrower and I. enderco oenantend.utirr-a % to! lr'w%
<br />1. Payment of Principal and Interest; Prepayment and Late (charges. Hornmer %bail prnmplly pay when <tnr
<br />the prtnc•spat of and interest on the debt evidenced by the Note and any prepayment and la +e c h:uges duc under the Noir
<br />2. Fulls for Taxes aad Insurance, Subject to applicable law or to a wrutc •., cr by Lender, Borrower %hail pay
<br />to Lender on the day monthly are due under the Note, "Fund% ")
<br />payments until the Note is p;+vf o, full, a sum ( cqu.fl to
<br />one•twcifth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (h) yearly
<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 eStimale%of future escrow items.
<br />The Furtds shall he held in an institution the deposes 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, anaLyzmg the account
<br />or verifying the escrow Items, unless
<br />Lender pays Borrower interest con the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds Unless an agreement I% made or applicable law
<br />requires interest In be paid. Lender shall not he required to pay Borrower any interest or earnings on the Fund%. Lender
<br />shill give to Borrower, without charge, an annual accounting of the Funds
<br />showing credits and dehus to the Funds and the
<br />purpose for which each debit rat the Funds was made. The Funds are pledged as additional %county for the sums secured by
<br />this Security Insi rumens
<br />If the amount of the Funds held by Lender. l ogether with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow Items, %hall exceed the amount required to pay the escrow items when floc, the execs% 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 I% not %uffocteni to pay the ewrow'rent% whin duc, Borrower shall pay to Lender any
<br />amount necem ury h) make up the deficiency in one or more payments a% required by Lender
<br />Upon payment in foil 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,
<br />any Funds held by Lender at the time of
<br />application as it 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 he applied: first, to amounts pay'atblie under paragraph 21 second. to Interest
<br />due; and laser to principal due.
<br />4• CMerges; Lien. Borrower shall pay all taxes, assessments, charges, hnes and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, leasehold
<br />and 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 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 lien in a manner acceptable to Lender, (h) contests in good
<br />faith the lien by, or defends against enforcement the lien
<br />of m, legal proceedings which in the Lender's opt If ion 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 hen an
<br />agreement %alisfactory to Lender %uhlordinattng the hen to this Security Instrument. If fender determines that any part of
<br />the Property is sub)ecl 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 hen
<br />or take one or more of the action%set forth above within 10 days
<br />of t he giving of not ice.
<br />3. 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 "extended
<br />W
<br />term coverage" and any other hazards for which lender
<br />requires Insurance This insurance shall he maintained in the amounts and for the period% that Lender requires The
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<br />insurance carrier providing the insurance shall he chosen by Borrower subject to Lender'% approval winch -.ball not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall Include a standard mortgage clau%e.
<br />Lender shall have the right to hold the and If Lender
<br />policies renewals require%, Borrower %hall prnmplly give to Lender
<br />all receipts of paid premiums and renewal nMices. In the event of Ims, Borrower shall give prompt notice h, 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 prrcreds shall he applied to restoration or repair
<br />of the Properly damaged, if the restoration or repair i%
<br />econom'caliy fca%dilc and Lender's %ectiniy n not Ir%uned If the
<br />restoration or repair is not economically feasible or Lender's security would he l"word. the insurance prtexed% %hall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any rxcns paid to Borrower. If
<br />Borrower abandons the Property, or does not answer
<br />within 10 days it notice from Lender that the insurance carrier has
<br />offered to settle a claim, [lien Lender may collect the insurance proceeds Lender may me the pn,cred% fo repair or restore
<br />the Properly or In pay sums secured by this Security Instrument, whether or not then due The 30 -day period will Mng'n
<br />when the notice is given.
<br />Unicss Lender and Borrower otherwise agree in writing, any application of proceeds In principal shall not extend or
<br />postpone the due date of Ile monthly payments referred to in
<br />paragraphs I and 2 or change the amount of the paymcnii If
<br />under paragraph 19 the Property is acqquired by Lender, Borrower's right to any Insurance policies and proceeds re%uhing
<br />from damage to the Property prior to tfue acquisition
<br />shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to The acquisition.
<br />Cr. Presersatdon and Maintenance of Property; Leaseholds, Borrower shall not destroy, damage or suhsranunlly
<br />change the Properly, allow the Property to deteriorate
<br />or commit waste. If this Security Instrument is on it lea%ehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower
<br />acquires fee title to the Property, the leaschnld toad
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Proleetioa of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails fn perform the
<br />covenants and agreement% contained to this Security Instrument. or there I% a legal proceeding that
<br />may %'pmficantav affect
<br />Lender's rights in the Properly (such as a proceeding in bankruptcy, probair. for condemnation or to enforce law% or
<br />regulation%), then Lender may doand pay felt whatever is necessary to protect the value of the Property Lender's
<br />and right%
<br />in the Property. Lender's actums may include paying any sums secured by a ben which has priority o %er this Sccur't,,
<br />Instrument, appearing in court, paying reasonable attorneys' fees
<br />Ij
<br />and entering on the Property to make repairs. Ailhoogh
<br />Lender may take action under this paragraph 7. Lender doe% have
<br />i
<br />not to do so
<br />Any amounts dt%bur%ed by Lender under this paragraph 7 0311 het "me addu'ona[ debt of Borrower %rcurc.t hs rho%
<br />Security Instrument Unless Borrower and Lender agree to other term% f.
<br />R (payment, thr%r am +rant%%hat! M :It'nlrrr %t f,-n
<br />The date di%hurenxnt
<br />of at the Noic tote and shall be payahlr. woh u,trrc%t. „p„n of,u„ frf,m I f'n'trr i,• Itn,rnwef
<br />requesting payment
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