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Bb- 104794
<br />Litit101INICOy FNANTC Arower and Lender covenant and agree as follows
<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 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: ihl vearly
<br />leasehold payments or ground rents on the Property, if an (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 ofcurrent data and reasonable estimates orfuture 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 he paid on the Funds. Unless an agreement is made or applicable law
<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 of the Fundsshouing 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 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 parable 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 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 We charges due under the Note; second. to prepayment charges dui 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, 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 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 ' unless Borrower_ Cal
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />C i;h the hen 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, er (c) secures from the holder of the heir an
<br />agreement satisfactory to Lender subordinating the Tien to this Security Instrument. If Lender determines that any pan 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 tine• or more of the actions set forth abovessithin 1€ dais
<br />of the giving of notice
<br />5. Hazard insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the teen "extended coverage"" and any other hazards for which Lender
<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 he chosen by Borrower subject to Lender's approval which shall npi be
<br />unreasonably withheld.
<br />All insurance policies and renewal+ shall be acceptable to Lender and shall include a standard mortgage clause'
<br />Lender shall have the right to hold the pohi;um and renewals If L.tnder requires, Borrower shall promptly give to I-tnder
<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 prool'of lass It-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 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 Lenders security would be lessened, the tnsurancc proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether art not then due, with any excess paid to Borrower, if
<br />Borrower abandons the Property, or flocs not answer within 30 days a nonce 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 to repair or restore
<br />the Property or to pay sums secured by this Security Instrument. whether or not then due- The )t).day period will begin
<br />when the namce is given
<br />Unlc-,s Lender and Borrower otherwise agree in writing. any application of proceeds to principal shall not extend isr
<br />Postpone the due date of the monthly payments r eferred to in paragraphs I and' or change the amount of the pay dents if
<br />under paragraph 14 the Properly is acquired by Lender, Borrower's right to any insurance poolicics and proceeds -esuitang
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent orthe sums ,
<br />ums soured by ri is Security
<br />Instrument immediately prior to the acquisition
<br />6. Preservation and Maintenance or Property; Leaseholds. Borrower shall not destroy, damage, or sue stands iii
<br />change the Property, allow the Property to deteriorate or commit waste if this Security In,sirurttent is stn a leaveht >,i
<br />Borrower, shall comply with the provnstcros of the lease. and if Borrower acquires fee title to the Prtrtxrty_ the leasxt t - - - -a
<br />- - - - • ic3ha.`I tics' -- -_ 4 - - -. -
<br />r =rirr�e unle ss t.ertu`cr ag; ee++ ter the merger in w ruing.
<br />Protection of Lender's Rights in the Property: Mortgage insurance. If Flo towcr tails i0 pert.rm the
<br />cnset�nts and agreements contained m this Security Instrument or there is a legal prsoceedmiz that mai significantly `feet
<br />Lender's rights in the Property (such as a pro eeding in bankruptcy, probate, for condemnation or to enfr,rce laws ;yr
<br />regulati lts), then Lender may der and pay for whatever is neccMSary err prrnect the v slue of tht 'Properly and Lender's right,
<br />in the Pniperit, Lender's act1wis may include paying any gums secured by a hen which has prtirity river rhiy ticoaanty
<br />Instrument appearing in >iurt. pal rnq reasonable atirirney s' fees and en,enng tro the Pr« lxriv To tnakr rrpairs 4it i ¢h
<br />(ender "ray take atiio i under this paragraph '_ Lender does not have tt> do ,.cr
<br />gins Arne +urns dtsburwd toy. I ender under this paragraph T shall tvvourse ,idditional debt ,,i` R,arr,,wer se. iir4ct Er. rP i4
<br />security Ir =avumcm L'nless &,rrrvwcr and Lendrr agree ei tither terms trf pavn +grit thrsc a _t rt, s} t Mar
<br />ihr -laic .t ilisiiiir•,nirtetat as iris N� tt ±are snot shal4 "3e ilIiAMe, w -iih sriirrect.. Jp+rn :a33.cr it ;,m l erndel !, lei ..i.fd.
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