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I. Payment of Principal and Interest. Prepayment and IAte Charges. Borrower shall prompt Is pay "lien due
<br />the principal ofand interest on the debt evidenced by the Note and any prepayment and late charges due Untier i fie Note
<br />2. FunothforTaxesartdinsurstricc Subject to applicable law or to a written waiver by Lender. Borro%%cr,hail pay
<br />to Lender on the day monthly payments are due under the Note. until the Note is paid in fu . I]. a sum (Fun&) equal to
<br />one-twelfth of (a) yearly taxei arid as4esk;ments w h3ch may attain priority over this Security Instrument. �b) �earIN
<br />leasehold Payments Of ground rents, an the Property, if any; W yearly hazard insurance pr'errnurns� and 1d) scarly
<br />mortgage insurance premiums. if any. These items aricalled "escrow item's - Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimate,,; offuture escrow items
<br />The Funds shall be held in an institution the deposits or accounts ofwhich are insured or guaranteed bk, a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the cscro" items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or vcnfying the escrow items. unless
<br />Lender pays Borrower interest on the Fund,. and applicable last 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 -hall not be required to pa) Borrower any interest or earnings on the Fund% Lender
<br />shall give to W-)"(iwcr, 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 Fund% are pledged as additional security for the sum% secured b%
<br />this Security instrument
<br />If the amount of the Funds held by Lender, together with [he future monthly "yment& of Funds payable prior to
<br />the due dates ofthe escrow items. shall exceed the amount required to pay the escrow items when due, the excess, shall be,
<br />at Borrower% option. either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds, If the
<br />amount (if the Funds held bv Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount neces. sary to make up the deficiency in one or more payments as required by Lender.
<br />Upon payment in full ofall sum,; secured by this Security Instrument, Lcrder shall promptly refund to Borrower
<br />any Funds held by Lender. If tinder paragraph 19 the Property is sold or acquired by Lender, Lender %hall appl%. no later
<br />than immediately prior to the We of the Property or its acquisition by Lender, any' Funds held by Lender at like I ime 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; arld last, it) principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charge.-,, fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leaschold 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 amouriv,
<br />to be paid under this paragraph. If Borrower makes these payments directly. Bkrrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has pnonty over this Secunty Instrument unitss Borrower (a)
<br />agrees in writing to the payment ofthe obligation secured by the lien in a manner acceptable to Lender, fb) contests in good
<br />faith thelien by, or defends against enforcement of the lien in. legal proceedings which in the I ender'� opinion operate to
<br />prevent the enforcement of the lien or fo-'�jturc ofany parl of the ProWtv: or (c) secures from the holder (if -,he lien an
<br />agreement satisfactory to Lender Nubordinating the lien to this Security Instrument. IfLcndcr determines that anv part of
<br />the Property is subject to a lien which may attain priority over this Security Initrunient, Lender may gt%e Bor'rc,%%er 't
<br />notice identifying the lien Borrower -hall -,atikfv the lien or take one or more of tire actiorrs %ri forth atio%c within I0 daNs
<br />of the gii, ing of notice.
<br />5. Hazard Insurance. Borrower shall keep the improN crnerkt% now existing or hereafter erected on the ProperiN
<br />insured against loss by fire. hazards included within the term "extended coverage" arid any other hazard,,. for A hich I-endc'r
<br />require% insurance This insurance shall he maintained on the amounts arid for the periods that Lender rNuircN_ The
<br />insurance carrier providing the in-,urance shall he chosen by Borrower subject to I endef's appro%al which nor he
<br />unreasonably withheld
<br />All insurance policies. and renewal% shall be acceptable to Lender and ,hall include 3 standard mortgage ,:I;tuw
<br />Lender shall have the right to hold the policies and renewals If Lender requires, Borrower shall prompth gi%e U) Lerider
<br />all receipts ofpaid premiums and renewal notice% In the e,,crit ()f loss, Borrower shall give prompt nonce'to the insurance
<br />carrierand Lender Lender may make procil'ofloss friot made prompil; by Borrower
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or repair
<br />of the P . roperty damaged, if the restoration or repair i% economically feasible and Lender's security is not lemened if the
<br />restoration or repair is riot economically feasible or Lender's security would he lessened. the insurance proceeds shall he
<br />applied to the sums secured by this Security Instrument, whether or nut then due, with any excess paid to Borrower If
<br />Borrower abandons the Property, or does not answer within 30 day% a notice from Lender that the insurance carrier has
<br />offered to settle a claim. then LendCT MAY collect the insurance proceeds. Under rnav use the proceeds to repair (it re�tore
<br />the Properly or to pit) %urn� %ccured by ',)its Security Instrument. %hether of not th'ery due The ln-da% ptnod will begin
<br />when the notice is gl%cl,
<br />Unless Lender Arid Borrower mherwi-sc agree in writing, an� 3pplication of prot:ceds to principal shall not extend if
<br />ipcone the due datcofthe monthly pa)mcnis referred to in paragiaphs 1 and 2 or change the amount of the pa� rn.ent% if
<br />under paragraph IQ the Property is acquirtd b% Lender. Borrower's right to any in%umlit.c polire
<br />.s and proceeds re,jillr1l,
<br />from damage to the Proper,,) prio,, to the acquisition %hall pas% to Lender to the exlerit (if the �,ums secured hi, this SCi.Wlt�
<br />Instrument immediately rnor to the acquisit lorw
<br />6. Preservation and Maintenance of Property; I—easeholds. Borrower shalt riot dc,�troN. damage or substantiall%
<br />change the Property, allow the Properly to deterioratc or commit waste if this Security Instrument 1% t,n a
<br />Borrower shall compl,. with the provision's ofthe lease. and if BoTrower acquires fee title to the Properiii, the lea-�chold arid
<br />fee title shall not merge unless I.cndcr agrees to the merger in writing
<br />7. Protection of Lender's Rights in the Property; Mortgaite Insurance. If florrowcr fails w ricrtorrn rkit
<br />covenant-, and agreervicnii contained in this Sectinty Instrument. or there is a legal proceeding that ma% aflec!
<br />Lendker'o, rightoi in the Property (such as a procec�ing in bankruptcy, probate. for condemnation or t,-'rnforc:c iaw, or
<br />regultittono, then 1,crider rna% do and pay for whatever is necessary to protect the kalueof the ProperiN and I ender 1, 11VIIIN
<br />in the Property Lender',� 30wn� rnaN include paying air) �ums '%rcured bs a ;icn , hich has prwrii% vr th), Nw, ,I �:,.
<br />Instrument. appearing iri court, ;ia% r'g rcaonabic altornc�%' fees and enter mg in !lie V.r,irc,l% 10 IT114kc ltll.11?, -,F1,
<br />Lender may lake action kinder this lmragraph ', I-ender doi-. not ha,c !o to, �c
<br />Any amounto, tfi�hulsed h, Lendcr under this paragraph ' sh,,!] lict,rtle jet, j BOM�- 1, jr� if
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