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a� 3 VN FORM COVFNANiS. Borr6werami Lender covenant and agree as follows:
<br />iorrower shall promptly pay when due
<br />Note-
<br />the, nnctpet ofandi merest on heiletit.et idenood by the:viott and any prepayment and latecharges due under the Note
<br />�� ." . - 2. F�Mc lee 3 ass ad �dairswee: subject tb applicable law or to a written waiver by lender. Borrower shall pay
<br />to tender on the day m nthty'ptyitieietdrt�ee due under the Note, until the Note is paid: in full, a'sum ( "Funds -) equal to
<br />:<' o twelRh of a
<br />_.:. .
<br />O -yearly taxes atui ikseasineitts which may attain prry�ty over this Security Instrument; (b) yearly
<br />kaseliold pay rnedtsor ground rintsog the Property, if any, (c) yearly hazard insurance premiums; and (d) yearly
<br />'motile inarrance premiums if any. These items are called "escrow: items." Lender may estimate the Funds due on the
<br />ba is ofcurrept data and rrasoriable estimates of future escrow items.
<br />-, The Fuods shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal ar
<br />state sgency (including Lender if Linder is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Leader may not char a for holding and applying 'the Funds. analyzing the account or verifying the escrow items unless
<br />g is y' g > g a
<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 interest shall be 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 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 and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged 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 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 shall apply, no later
<br />than immediately prior to the sale of the Properly 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 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; (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lenders 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 su"ardinating 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 above within 10 days
<br />of the giving of notice.
<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 which Lender
<br />requires insurance. This insurance shall be maintained to the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be cho %cn by Borrower subject to Lender', approval which shalt not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be 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 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 Borrower otherwise agree in writing, insurance r needs 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 lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would he 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 Properly. 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 Lender and Borrower otherwise agree in writing, any applicanon of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. !f
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance 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 by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Proper $y: Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security instrument is on a leasehold,
<br />Borrower shall comply with the provisionsof 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. Protective of Leader's !tights is the Property: Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may signthcantly atrect
<br />Lender's ri ghts in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), theft Lender may coo and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lenders actions may include paying any sums secured by a hen which has pnonty over this Security
<br />instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repair Although
<br />Lender may take action under this paragraph 7. Lender does not have to do so
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of ltorroAcr secured by this
<br />Security Instrument- Unless Borrower and Lender agree to other terms of payment. t hose amounts shall hea r intend from
<br />the date of disbursement at the Note rate and ;hail he payable, with interest. ulv,n notice from 1 ender t,, Miir„urr
<br />requesting payment
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