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86 LstIFORM COVENANTS Borrower and Lender covenant and agree as follows:
<br />104738
<br />1. Payment of Principal and Interest; Prepayment and Late Charges, Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and latecharges due under the Now
<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 />t one- twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument_ IN yearly
<br />leasehold payments or ground rents on the Property, if 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 ofeurrenl data and reasonable estimates of future escrow items.
<br />The Funds shall be 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). 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 />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 be paid on the Funds. Unless an agreement is made or applicable laws
<br />requires interest to be paid, Lender shall not be required in pay Borrower any 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 Futidsand the
<br />z.
<br />purpose for which each debit to 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 aFunds 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 %hall pay to Lender any
<br />amount ntc:essary 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 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 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: and last, to principal due.
<br />i. Charges Liens. Borrower vital) pay all taxes, assessments, 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 awed payment Borrower shall promptly furnish to Lender all notices of arnounts
<br />to be paid under this paragraph. if Borrower rrakry these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the pas yments.
<br />Borrower shall promptly discharge any lien winch has priority over this Security instrument unless Borrower (a)
<br />agrees in writing to the payment of the obligation Accured by the lien in a manner acceptable to Under: (b) contests in good'
<br />faith the hen hy. or defends against enforcement rat the lien in, legal prm;cedings which in the Lender`s opinion operate to
<br />prevent the enforcement of the lien or farferture of any pari of the Property, or (c) secures from the holder of the hen an
<br />Agreement satisfactory to Lender subordinating the lien io this Security Instrument- If Lender determines that any part o,
<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 licit Borrower shall satisfy the lien of take toe or Mort of the actirins set forth above within 10 days
<br />of the giving tiff notice.
<br />S, Hazard Insurance. Borrower shall keep the improvements, now ezttsting air hercaftrr crested o'en the Property
<br />insured against loss by fire. hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires irisuraaet. -this insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall he ch.�sen by Borrower subject m Lender: approval which shall not be
<br />unreasonably withheld
<br />All insurance policies and r :r ewals shall be acceptable it) Lender and shall include a standard mortgage clause,
<br />Lender shall have the right to hold the policies and renrwaly_ If tender 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 />:warier wild l.endtr Lender may make prooifof ins if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if itse restoration or repair is econotmcally feasible and Lender's security is not less tntct. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened. the insurance proceeds shall be
<br />-apphed €t, the sums sixurcd by this Scrurtty Instrument. whether or rnit their due, with airy czxss paid to Borrower if
<br />-._-.- - ------ Borroower aimnolons, the Property, or does not answer within KJ days a notice from Leader that the insurance carrier has
<br />offered to settle a claim. then Lender may collect the insurance procceds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. The (i -dal period will begin
<br />when the notice is givenL'nlcss Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />piistpcync the dui date of the monthly payincnts referred to in paragraphs I and 2 or change the amount i,rf the payments If
<br />under paragraph lu the Property a acquired by Linder, Borrower's right to any insurance pnhcies Arid proceeds rc,ulting
<br />from damage to the Property prior to the acquisition shall mass to lender to the extent of the suris %toured by this ti eurity
<br />Instrument irnmetWic1y prior to the Acquisition
<br />6. Preservation and Maintenance of Proper. Leaseholds. Horrower shall not destroy, damage or ou'bstAntlaily
<br />change the Prnperty. allow the Properly to deteriorate or ci,mmit waste if tins Sttiuritt Instrurntut is 011 a ItArehe,ld,
<br />Borrower shall %.amply with the pros isa rna of the dcase, and if Borrower a&uuutres five title to Lhe - Pr_ir� Lv- ch,1 --hhti —i
<br />. Ott iitk shall nsit merge units,+ Lrndrr agrtts to the merger u€ writing,
<br />7, Protection of Iwadcr's Bights in the Property; " mortgage insurance, It Borrower fails no perform €he
<br />crastranty arkd altrrrrncnts satntatnei in this Syr urity Instrument. or there is a legal proccedmg that may siginfiLmit1% affect
<br />Lender's rights m the Prta ;±city touch As A priaeeeding to hankruptcy, probaic, for condernnatirorc or to enfrn r. laws or
<br />regulatuins't. torn Linder nia) do and pAy for w Kato et rs necessary to protect the slue of the Property and Lender's rights
<br />In the Pt14wrty Lander`% actions may include paying any sums sc%cured by a licit which has priority river this 5e:uttic
<br />Invitumrnt_ appearing in :court. paying reau,tiat ie attrrnuyti fetes and entertag on the '11ti. trty u3 makc repast% Allh4ulirl4
<br />lender may take ac lion urndrt this parrayrapti ". I ender dog not hake tit do sex_
<br />An} arn'fwwt ihshursrd by I ender wido this paragraph 7 shall N onir addattwoul deht t,f Hot rrvwt r veciiird by this
<br />*securtfy Irssrrurrretrt I nlr^ss lt++rrs,wr_r acid I r-Icr agree It tither ierin% = 4 pat merit, 111cw Antoo is shali heat irtirtett Criirn
<br />_ the date , >i fis.,ura•niflo at tole ' "l, r.rir anti shall he payat)It. with mte€rt, ur.mj iiolire finely I emlei r., lt.,r—wer
<br />rr -4ur3;41n.# pirs mow -
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