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UNIFORM COVEINAN rS Borrower and Lender covenant and agree as follows. 86.�. 1 V M 7
<br />1. Payment of Principal and interest; Prepayment and Late Charges, Borrower shall promptly pay when due
<br />the principal ofand interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ( "Funds ") equal to
<br />one- twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if am; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items are called escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds shall he held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if lender is such an institution). Ixnder 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 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 he paid on the Funds. unless an agreement is made or applicable law requires interest to he paid, Lender shalt not be required to pay Borrower arc 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 suns 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 of 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 thus Security Instrument.
<br />3. Application of Payments. Unless applicable law provides other wise. all payments received by Gender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note; second, tit prepayment charges title 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, tines 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 tender 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 it manner acceptable to Lender, (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which rn the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or fc) secures from the holder of tine lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. if Lender dcteri uneN 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 rf the acuoris set forth above within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improycments 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 t„r which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the pellOds that Lender requires. File
<br />insurance carrier providing the Insurance shall be chosen by Borrower suhlect to 1_endcr's approval which shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include it standard mortgage clause.
<br />Lender shall have lite 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 gise prompt nonce to the insurance
<br />carrier and Lender. Lender may make proof of loss tf not made prornptlt by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's sectnniv Is not lessened, If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the list,'
<br />surance pnxer i shall he
<br />applied to the sums secured by this Security instrument, whether or not then due, with any excess paid ro 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 may collect the insurance proceeds. Lender may use the proceeds t;, repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. the 30 -day reri<xl will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree it, writing, any application 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 paymcnu. If
<br />under paragraph 19 the Property a acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />front damage to the Property prior to the acyuistion shall pass it) Lender to the e.xieni (if the sums secured by tins Security
<br />Instrument immediately prior ice the acquisition
<br />6. Preservation and Maintenance of PrnperJ ; Leaseholds. Borrower shall not destroy, dannage of suhstarivalh
<br />change the Property, allow the 1 roticrty to deteriorate or commit waste. if this S"unty Instrument is on a lrascho;d.
<br />Borrower shall comply with the pro% isions of the lease, and if Borrower acquires fee title to Itic Property, the lruchold and
<br />fee title shall not merge unless Lender agrees to file merger in writing.
<br />7, Protection of Lender's Rights in the Property; Mortgage Insurance. It Borrower fails io perform the
<br />covenants and agreements contained in this Security instrument. or there is a legal proceeding that nun sigmticantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate. for condemnation or to cnforccr laws or
<br />regulations), then Lender may doand pay for whatever Is necessary !o protect file value of they Properic and Lender's rights
<br />in the property. Lender's actions Ina) include paying any sums secured bv a lien x11101 has pnurny oecr this Set unis
<br />lnstrurtnent, appearing ui court. pap +rig reasonable attorneys' fees and entering nn tile Propel it 1, make repairs Although
<br />Lender may take action under this paragraph Lender does not have u, do so
<br />Any amounts dishurscd by Lender under this paragraph ? shall he orne ad;;iIwilal debt ,I Borrower scrlirCot ny thn
<br />Security Instrument Unless &grower and Lender agree it, other tetras of pay rticr,t, nhcsi armsanus ,hall heal n,i -r..t from
<br />the date of disburwilicnt at the Note rate and shall he payable. wish lei crest. up,�n nonce fl n;i I ender 1" Bien, :wc!
<br />requesting payment
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