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86--, 109980
<br />f,1NIFORM 47010 F"NTc, Borrower and Lender cnvrnani and tarcris folln —, s µ.I1111 d c
<br />L Payment of Principl and Interest; Prepayment and late Charges. BlU(fnweT sh:dl luomplly' f• Y
<br />Jltc jrinetpal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Nate
<br />2. 1fwMa f.. Tase"s ail Subject to applicable law or to a writtc•: t.str by Lender, Dorrrower shall pay
<br />to Lender on the day monthly pay lie 1% are due under the Note, until the Note is paai rn full, a sum ("Funds'*) equal to
<br />one - twelfth of. (a) yearly taxes and assessments which may atom priority over this Security Instrument; th) yearly
<br />lease" paytttents or ground rents on the Property, if any; (c) yearly hazard insurance premium%, and (d) yearly
<br />rnoctgage insurance premiums. if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />baits cif current data and reasonable estimates of future cwmw items.
<br />The Funds shall be held in an inslitutian the deposits or accounts of which are insured or guar
<br />arNeed by a federal or
<br />Nate lopency; (including Lender if lender is such an instilutintt). Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds. analyzing the account or verifying the escrow items, unless
<br />Lender pays klorrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Under may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />Le
<br />requires interest to be paid, Lender shall no he 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 credits and debits to the Funds anti the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as adds tonal security for the sums secured by
<br />this Security instrument.
<br />U the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates of t he escrow Items, shall exceed the amount require( to pay the escrow Items when due, the cxcL%% shall be,
<br />at Borrower's option, either promptly repaid to Borrower or created to Borrower on monthly payments of Finis 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 Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shalt 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 againsl the sums secured by this Security Instrument.
<br />3. A/plieafora of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 shall he applied: first, to amounts payable under paragraph 2; second, to interest
<br />due: and lantr to principal due.
<br />4. (liarow Liens. Borrower shall pay all taxes, assessments, charges, Ines 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 thescobligations 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 theohhgalion 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 hen. 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 />S. Ha>urd lasaraace. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />imured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Bender
<br />requires insurance. This insurance shall be maintained In the amounts and for the Bested% that Lender requires. The
<br />Insurance carrier providing the insurance shall he chosen by Borrower suhpecl to Ixnder's approval which shall not be
<br />unreastmably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Leader 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 Ioss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of Ices if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or repair
<br />of the Properly damaged, if the restoration or repair is economically feinihlr and Lender's security Is not lessened If the
<br />restoration or repair is not economically feasible or Lender*,; security would he descried, the insurance proceeds shall 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 the insurance cart ter has
<br />offered Io 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 clue. The 3"ay period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds 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 its ac wired by Lender. Borrower's right to any Insurance policies and proceeds resulting
<br />from damage to the Property prix to the acquisition shalt pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prix to the acquisition.
<br />t. Preaervol" and Maintenance of Property; Leareholds. Borrower shall rot destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security instrument Is on it leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee tole to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of leader's Rights in the Prgsrly; Morl$W Insurance, If Borrower fails to perform the
<br />a wettatns and agreements contained in this Security Instrument, or there is a legal prtwee ding thal may significantly 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 t he Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a doe" which has priority over this Secutuy
<br />iesttimlent, appealing in court, paying reasonable attorneys fees and entering on the Property to make repairs. Although
<br />Lendder may take action under this paragraph T, l.mder does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 1 shall hecome additional deht of Borrower secured hV this
<br />Security Instrument Untess lorrovwer and Lender agree In other icrms of payment, these amounts shall hear Interest from
<br />the dale ar dlsburxment at lie Note rate and shall he pavatilr. with interest, ut>atn "whet from I ruder to 11mrowet
<br />requesting payment.
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