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103708
<br />86--
<br />IiNlve"OoM COvrN -11- Borrower and Lender covenant and agree 3%tohow%
<br />I. Payment of Principe and interest; Prepayment and Late Charges. Borrower %hail prtutiptly pay when slue
<br />the principal of and interest on the dent evidereced by the Nolcand any
<br />prepayment ;end late chargr% due under t ite Note
<br />2. Funds for Tones sod lnxt tin ee. Sulyeet to applicable law or to a writ te-, ,.%cr by Lender. Borrower %hall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is p.wo m full, a sum ("Fund%') equal to
<br />one - twelfth of: (a) yearly lanes and assessment-, which may attain prir•r+ty over this Security Instrument, (hl yearly
<br />Ilzcsehohd payments or grouted rents on the Property, if any; (c) yearly hazard insurance premiums: and (d) yearly
<br />mortgage insurance premiums, if any. These items art called "escrow Items " Lender may e%rimalc the Funds due on the
<br />hasis olcurrent data and reasonable estimate- affuture escrow items.
<br />The Fundsshall he held in an inatitutiten the deposits or accounts of which are insured or guaranteed by a federal or
<br />slate agency (including lender if Lender is such an mstifulinn). Lender shell 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 Borrower interest on the Funds and applicable law permits Lender to make such a charge. Burrower 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 10 be paid. Lender shall not he required to pay Borrower any interest or earnings nn the Funds. Lender
<br />shall give In Burrower• without charge, an annual accounting of the Funds showing dchtts
<br />credits and to the Funds and the
<br />purpose for which each dchit ur the Funds was made. The Funds are pledged a% additional security for the %ums %ecurcd by
<br />this Security Instrument.
<br />If the amount of the Funds held by lender, together with the future monthly payments of Fund% payable prior to
<br />the due dates of the escrow items, shall exceed the amount required in pay the c%crow' Item% when dire, the excess %hall be.
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payment,; of Fund% If the
<br />amount of the Funds held by lender I% not sufficient In pay the escrow Item% when due. Borrower shall pay to Lender any
<br />amount necessary to makeup 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. 1f under paragraph 19 the Property a 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. Applieallon of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be Applied; firm, to amounts payable under paragraph 21 second, to interest
<br />due; and Iaa *_, to principal; due.
<br />+. Chargsat Lien. Borrower snail pay all (axes, assessments, charge, lines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, slid 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 />My them on time directly to the person owed payment. Borrower shall promptly furnish in Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these directly, Borrower
<br />payments 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
<br />tee;
<br />to the payment of the ohligation secured by the hen In a manner acceptable to Lender; (h) conte%is in good
<br />faith the hen by, or defends against enforcement the lien legal
<br />of in, proceechngs which an the Lender's opinion operate io
<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 />b
<br />r
<br />agreement satisfactory to Lender subordinating the hen to this Security Instrument. If I ender determines that any part of
<br />the Property is subject to ■ lien which may attain
<br />pnonty over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the hen or take one or more of the actions set forth above within IQ days
<br />of the giving of notice.
<br />S. Hasid Insurance. Borrower shall keep the improvements now existing or hereafler erected on Itic Property
<br />insured against loss by fire, hazards included within the "extended
<br />term coverage" and to nv other harards for which Lender
<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 %hall he chosen by Borrower suhtmi to lender's approval which shall not he
<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 require%. Borrower
<br />shall promptly give to Lrnder
<br />all receipts of paid premiums and renewal notices. In the event of Inns, Borrower shall give prompt notice In the Iti%urance
<br />carrier and Lender. Lender may make proof of lips I not made promptly by Borrower
<br />Unless Lender and Borrower otherwise agree in wrilmg, Insurance proceed% shall he applied to restoration or repair
<br />of the Property damaged, of the restoration or repair is feasible
<br />economically and Lender's security Is not lessened if the
<br />reamoralion or repair is not economically feasible or Lender's seventy would he lessened, the insurance proceeds -;half he
<br />applied to The sums secured by this Security instrument, whether or nn1 then due, with any excess paid to Borrower if
<br />Borrower abandons the Property, or does not answer 30
<br />within days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance prncceds. lender may u%e the proceeds in repair or restore
<br />the Properly 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 application of proceeds to principal shall not extend or
<br />tme
<br />pos►p the due date of the monthly payments referred to in
<br />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 Insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition
<br />shall pass to Lender to the extent of the sums %ecured by this Security
<br />Instrument Immediately prior to the acquisition.
<br />d• Prew"stion and Maintenance of Property; Leaseholds. Borrower %hall nor destroy, damage or sub%tantully
<br />change the Properly, allow the Properly to deteriorate
<br />or commit waste If this Security Instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and If &grower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lrnder agrees to the merger In writing.
<br />7, Proteelleai of Lender's Rights In Ike Property; Mortgage insurance. If Borrower fads to perform the
<br />eoveriants and agreements contained in this Security instrument,
<br />or there I% a legal proceeding that may %Igmficantly affect
<br />LCndtr'3 rights in the Property (such as a proceeding in bankruptcy, probate. for condenmation or to enforce !aw%
<br />or
<br />regedoltons), then Lender may dr1 and pay for whatever is necessary to protect the value of the Property and Lender'% right%
<br />in the Pmpert-•. Leader's actions may include paying any sums by lien
<br />secured a which has priority over iht% 1weuriiy
<br />itsslrumenf, appearing in court, paying reastmsble attorneys' fees and entering on the Property to make repair-, rltlhough
<br />Lender may take scoop under the% paragraph 7, tender does not have to de
<br />so
<br />Any amountsdisbur%ed by Lender under the%paragraph 7 %hall hci ome addulonal drhi of Horrowcr %ecured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of paymrnl, the%r adnounis %hall bear interro (ion
<br />ititi
<br />the dale of do."nerrecno at five Note rate and -hall be payahle, with interest lapin noti.r from 1 rndrr is li,,wer
<br />requesting payment
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