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UNIFORM CON FINANts. Borrower and Lender covenant and agree as follows; 86— 104672
<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 t he Note.
<br />2. Funds for Taxes and insurance. Subject to applicable lase or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the clay monthly payments are due under the Note. until the Note is paid in bill, a sum ( "Fundy ") equal to
<br />one- twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument: (b) yearly
<br />leasehold payment: or ground rents on the Property, it' any; (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 be held in an institution the deposits oraccounts of which are insured or guaranteed by it federal or
<br />state agency (including i.ender if Lender is such an institution). Lender 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 />Tender 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. finless an agreement is made or applicable iaw•
<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 ofthe Funds showing credits and debits to the Funds and the
<br />putpuse for which each debit tp 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 ofthe escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall he,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. .if the
<br />amount ofthe Funds held by Lender is not sufficient ua 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 />anv 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. 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 1 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, al.sessments. 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 o£ 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: 4al
<br />agrees in writing to the payment ofthe 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 hen or forfeiture of any part of the Property; or (c) secures from the holder of the lien in
<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 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 atxrvc within ITa days
<br />ofthe giving of tiotice.
<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 for which Lender
<br />requires insurance_ This insurance shall be maintained in the amounts and for the peririds that i..ender requires. The
<br />insurance carrier providing the insurance shall he chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All Insurance policies and renewals shall br 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 shall promptly give to Lender
<br />all receipts of paid premiums and renewal nouccs- In the event (if toss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not matte promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in w citing, insurance proceed-, shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair its economically feasible and Lender's security is not lessened, if the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall he
<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 0 days a notice from Lender that the insurance carrier has
<br />offered tti settle a claim, then Lender may collect the insurance proceeds_ Lender may nose 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-slay period will begin
<br />%hen the notice is gisen.
<br />Unless Lender and Borrower otherwise agree in writing, any application of prose ds to principal shall not extend or
<br />postpone the clue date ofthe monthly payments referred to in paragraphs I and 2 orehange the amount of the payments. If
<br />sunder paragraph 111 the Property t* acquired by I.ender. Borrower's tight to any insurance policies and proceeds resulting
<br />from dannage to the Property prior to the acquisition shall pass to Lender to the extent of the %urns secured by this St uraty
<br />instrument immediately prior ioi the acquisition
<br />b. Preser.atlon and 4laintenance of Property; Leaseholds. _ Lt arrowet ~boll n+ +t Jestr y, trtnagc sir suhstaiaiallz
<br />c hrrige the Pnaperty, allow the Property to deteriorate or ctornmit waste. If this Security Instrument is cot a leasehold,
<br />Borrower shall comply with the provisions ofthe lease, and if Borrower acquires fee title to the Property, the leasehold and
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<br />Ice tttic shall ooi merge unless lender agrees to the merger in w rating.
<br />7, Pr tkn of Lender's Rights in the Property. Mortgaxe Insurance. If ill +r_ -wer fads to wrl"mm the
<br />ct,t-cnants and agxattnCnts contained in this Security Instrument, or there Is a legal pro etdurg that may stgniti, -anih Zol""
<br />tender's right, in the Property {such as it pioccei tog in hankruptcy, probate, for 000dcmnattiin it to cuforer law, or
<br />tegulauousi, then Lcrndet may de and pay f it whaicvct is necessary to protect the talueof the Property and Lender's tights
<br />in the Pr+i{uurty I,taidet`s a, twns ntay include paying any sums secured by it hen which has prioro7 e +ssr tin. Secutit%
<br />inrriri;meut, appeetnng tit Court, paying rrassinanlr attc7r'ne } +' fee, and entermtc on the Pnopctls to Tnakr tcpot, Alihooph
<br />I en,kr may take a. ruin under this paragraph', I ender dims not haWc iii do six
<br />Ank a nliuriss clnstnrr ri by 1,endet under Ibis paragraph" shall lK'cflma adthuonetl drhi it ]nary, +wc`r Krute,f tic a!n<
<br />'4e^c iitti, lnfitiunirro 1") 1— li,rrt,awc•+ aad I rodet agnri° u, other terms iif paynaeol, Ihrse aitinwitw shall t+<ar mtrry -0 IF —n
<br />Ihsr slstz .d it IN ' ole iirte nrid +hill tie paNal k, widh Miei -m+l. "IN"! I`-1 1 cti.i" ;' li<i� +•s:ra
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