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UNIFf)RMCOVENAN -FS_ Borrower and Lender covenant and agree its foliows_ 86— 10 ,F86-4
<br />F. Payment of Principal and Interest; Prepayment and Late Charges. 13iirrtnvcr shall promptly pity when slue
<br />the principal ofand interest on thedebt evidenced by the Noteand any prepayment and late chargcs due tinder the Note.
<br />Z. Fundsfnr?airesaod Insurance. Subyect to applicable law or to a vcrittrn waiver by Lender. Borrower shall pay
<br />to' Lender cm the clay monthly payments are due under rite Notc.` until the Note is paid in full, a %urn ("Fund; ') equal to
<br />one- twelfth o£. (a) yearly 13x6 and assessments w°ftich-may attain priority` over this Securit Instrument: (b) yearly
<br />leasehold ptlyrnenis or ground'renic on 'the Property, if any, (c) yearly hazard insurance premiums and (d) yearly
<br />mortgage insurance premiums. if any. These items are called a -urow items:" lender may estimate the Funds due on the
<br />basis ofcurrent data and reasonable estimates of future escrow items:
<br />The Funds shall tie held in an institution the`de". -itsor 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 item;.
<br />Lender'maynot charge for holding and applying the Funds' the account or' verifying' the escrow items, imless
<br />Lender pays Rorrower'interest on the Funds and applicable law permits Lenderro 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 he required to pay Mirrowcr ant' interest or canning% on the Funds- Lender
<br />shalt 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. T`he Fund; are pledged as additional secures for the sums securest br
<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 play the escrow items when due, the eons%% shall bc,
<br />at Borrower's option, either promptly repaid to Borrower or credited In lli,rrower ou rnonthly payments of Funds. If the
<br />amount`of the Funds held by Lender is not sufficient to pay the escrow ire s when due, Borrower shall pay u+ Lender am'
<br />amount necessary to make up the deficiency in one or more payments as requ: red by Lender.
<br />Upon payment in full of all sums secured by this Security instrument. Lender %hail Prnmpth refund to Bori�ewcr
<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. arty Funds field 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 tinder the :Soto. second, u, prepayment charges due under the
<br />Note; third, to amounts payable under paragraph ?; fourth, to interest due; and last, to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges. tines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument. and !eawhold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph ?, 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 to 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 au
<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 aver 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 />rz. of the giving of notice.
<br />5. Hamad Insurance. Borrower shall keep the improvcrnrnts now cxisung or hereafter erected tin the Properly
<br />insured against loss by fire, hazards included within the term "extended coverage" an y- d an other hazards fair which 1 -ender
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<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall he acceptable to Lender and shall include a standard mortgage clause.
<br />Ixnder shall have the right to hold lite 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 tit writing, insurance Proceeds shall be applied to rcstaration 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 secunty would be 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 Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender nnay collect the insurance proceeds. Lender may use the proceeds h. repair o.r restore
<br />the Property or to pay sums secured by this Securty Instrument, whether or not then due. The 30 -day perused sill begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application ol- proceeds to principal shall nor extend or
<br />postpone the due. date of the monthly payments referred to in paragraphs I and 2 or change the arnount of the payments. It
<br />under paragraph l9 the Property is acquired by Lender. Borrower's right to any uuur;utce pohcics and proceeds raulung
<br />from damage to ilte Property prior to the acquisition shall pass to Lender to the extent of the sun's secured by this Secunry
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or %uhstannally
<br />change the Property. allow the Property to deteriorate or commit waste. if this Security hi,rrumcnt n, tin .t le:tachold.
<br />Borrower shall comply with the provecions of the lease• and d Borrouar' acquire, tee tole to the Property. Elie leasehold and
<br />fee title shall not merge unless Lender agrees to the merger nn writing.
<br />7. Protection of tender's Rights in the Property; Mortgage insurance. If Borrower till], tv pciform the
<br />covenants and agreements contained in this Security Instrument, our there u% a legal Proceeding that nuty s y nili :aptly affect
<br />Lender's rights in the Property (%uch as a proceeding tit hankruptcv, prohatc, for condemnahot: or to cntitrce laws or
<br />regulations), then tender may de and Pay for wh;ttever is nece%san to Protect the talue,?f rhr Pr leery sic; Lender's rt hr,
<br />in the Fropd rty lender's .tenon% relay include paying any sums ,ecured by a hen which ha, pnortty ,Net rhr, securlti
<br />Instrument. appearing in court, pacing reasonable attorneys' fees and entering tin the Property to make rep.m, yltlxnigh
<br />Lendcr;N,yy- take action under this Paragraph ?. [..ender drxx net hove to do,,:
<br />Auy amnurtrs disburk<1 by Lender under this paragraph'shail tkts r mr a,!oi;tioual slcht „f B„rro%%et c urcci b\ i h;s
<br />Sccurrty Instrument_ Unless Florro>w 'r andf 1 ender agree h�+�ther !eon, rf pay mint, the..: nnr,,.rth ,hail bets nuo rase hOii;
<br />the date of di%barwirient .it the Nonr rite and ,hall he pry.w1c. •.4101 inn. a °,t. a ,con -,� IIre ,,ant I , n.,iw I"
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