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86-- 105025
<br />l INII nR. ('rr l NA Nt s Hortnwer and Lendrr covenant and a(trer es follows
<br />I'aintent of Principal and Interest. Prepayment anal Late Charges. fl•orn tv =r sha11 1- „,•.spit♦ { �Y whru title
<br />the pnocipal of and interest on the deht evidenced by the Note and any prepayment and hoe chareesth r under thr Note
<br />2. Fonds for Taxes and Insurance. Suhtect to applicable law or ioa writtc -,ss r by Lcricler, Ihurrower %ball pay _
<br />to Lender on the clay monthly payments are due under the Note, until the Note is part it, full, a sum t "Fun(ti') equal to
<br />one - twelfth of. (a) yearly taxes and assessments which mac attain priority over this Security Instrument, (h') yeariy
<br />leasthold payments (it ground rents on the Property, if any; (c) yearly haaard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any- These item% are called "escrow items " lender may estimair the Funds due on the
<br />basis of current data and reasonable estimate; of future escrow firms
<br />The Funds shall he held in an institution the deposils or accounts of which afire insured or guaranteed ley a federal or
<br />state agency (including Lender if Lender is such an in%titutinn). Lender shall apply the Funds In pay the ruxow items.
<br />Lender may not charge for holding and applying the Funds anatyzmg the account or verifying the escrow, items, unless
<br />Lender pays Horrower interest on the Funds and applicable law permits T.errdcr in make such a charge. Borrower and,
<br />Lender may agree in writing that interest shall he paid tin the Funds. Unless an agreement is made or applicable law
<br />requites interest if, be paid, Lender shall not be required to pav Borrower any micrest or earnings tin the Funds. Lender .
<br />shall give to Borrower, without charge, an annual accounting of the Funds shOwnng credits and dehus in the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds arc pledged as additional srrurity 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 payahle pnor to
<br />the due dates of the escrow items. shall exceed the amount required to pay the escrow items when fine, the execs% shall be,
<br />at Bormwrr'% option, either promptly repaid if, Borrower of credited In Borrower tin monthly pais'men!% or 1=unds. if the.
<br />amount of the Funds held by Lender is not %ufftcirnt to pay the escrow isms when due, Borrower shall pay to tender 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 Secuntv Irstrumcni, Lender shall promptly refund to Harrower
<br />any Funds held by Lender. If under paragraph 14 the Property is sold or acquired by Lender, Tender shall apply, no later
<br />than immediately prior to the sale of the Property or its acqumnon by Lender, any Fund% held by Lender at the time of
<br />application as a credit against the sums secured by this Smunty Instrument
<br />3. Application of Payments. Unkss applicable law provides olhcrwrse, all payments received by Lender under
<br />paragraphs I and 2 shall he applied. first, to amounts payable under paragraph 2? second, to interest
<br />due; and last, to principal due.
<br />1. Gharnes; Linn. Borrower shall pay all talim assessments; charges, lines and impiositions attributable to the
<br />Progeny which may attain priority over this Security instrument, and leasehold payments or ground rents, if any_
<br />Borrower shall pay these obligations in the man -ter pmvidrd in paragraph 2. of if not paid in that manner. Harrower shalt
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish, to Lender alt notices of amounts
<br />to be paid under this paragraph. if Borrower makes these payments directly. Rnrrawer hall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any hen 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 L older; (h) ccmtu sts in goad
<br />faith the lien by, or defends against enforcement if the hen tn. 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 an
<br />agreement satisfactory to lender %uhxordinaiing the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a hen which may attain priority over this Security instrument, Lender puny gins Borrower a
<br />notice identifying the hen. Borrower shall satisfy the hen or take one or more of .the actions sit forth above within l0 days
<br />of the giving of notice.
<br />3. hazard Insurance. Borrower shall keep the improvetticrtis 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 iender
<br />require insurance This insurance shall be maintained in the amounts and for the prriod% that Lender regimes The
<br />infu-anee carrier pravidtng the insurance shall tit chosen by Hotrower subject to Lender'% appnnal which shall tint be
<br />-unreasonably withheld.
<br />All insurance pohcin and renewak shall be acceptable to Lender and shall include a standard mortgage clausr.
<br />Lender shall have the right to hold the p ilicics and renewals if Lender requires, Borrower shall prnmpf)y guys to Lender
<br />all receipts of paid premiums and renewal notices In the event of It-, Harrower shall give prornpt notice to the insurance
<br />carrier and Lender Lender may make proof of I. ^s irnot made promptly toy Horrnwet
<br />Unless Lender and Nirrowet of herivnic :agree in writing, insurance prticceds shall he applied fo risforation or repair,
<br />of the Properly damaged, if the restoration or feloair is monomcally tcasible aril Lendrr°%%raurtiy is not lessened if the
<br />restoration or repair is not economically feasible or Lender's security would he les%rned, the insurance proceeds shall he
<br />applied to the sums secured by this security instrument, whether (it not then due, with any rxcrss paid to ltnrrower If
<br />Borrower ahandons the Property, or does not answer within ?l) slays a notice from Lender that the sn- urancr carrier has
<br />offered io weals a claim, then Lender may collect the insurance proceeds Lender may use theprocteds in repair nr restore
<br />hie Property or in pay sums secured by this Scrunty lostrument, whether (it not then due The 10-day period will begin
<br />when the notice is given
<br />Unless Lender and Iorrower otherwise agree in writing, any application of proce -_ds to principal shall oat extend or
<br />postpone the due date of the monthly payments referred to in paragraphs i and 2 or change the amount of thr payments- if
<br />under paragraph 14 the Property is acquired by Lender, flornow t s right in any insurance polish%and procredh resulting
<br />from damage to the Property prior to the acquisition %hail pas% to Lender to the extent of €hc sums secured by this security
<br />Instrumei t immediately prior to the acquisition
<br />6. Preservation and Maintenance of Property; IA*seb". Hrinowir snail not destroy. damage or %ulimantealty
<br />change the Property, allow the Property in deteriorate or cianmu waste If this Securty Instrument s on A leasrh ild.
<br />Borrower .hall comply with itse provisions tiff!he !caw, and A tlei_rr_.w.M acsfuo _ Irsilil, f__ oho. Pt.uo.rt y, she Tcaschat s rind
<br />fee title shall not merge unless tender agrees In the merger in writing
<br />7, protection of Lender's Rights no the Property; ivitirtgage Insurance. If Bornowtr fails in perform the
<br />eovenantc and agreements contained in flits Security Instrument. tit there ma legal procervhng that may %ignificanils atfnr
<br />Lender's rights in the Property hush a% a proceeding in hankrupicy, proibaie, for condroinanon or to enftistr taw, Of
<br />regulations). then Lender may do and pay for whatever is necessary io pro€ect the valor tit the Prnprrty and lx drr`% rgbis
<br />in the Properly Lender's action% may include paying any sums secured by a lien which has pnonty (wry fhs Security
<br />Instrument, appearing in court, paying reasomahle attorneys' fret and entering on the l'ro periv to make rcpaar% Alib,iugh
<br />Linder may tike action under t hs paragraph 1, t ruder dives not have to do sit
<br />Any amount% dtsbur%ed by Lendet under this paragraph 7 shalt Meet =air additional tlelif of Horrnwrr secured try this
<br />Secunoy In %trumeni Unicy% Ilntrower and Leader Agree to tether reins. of paymau_ these xmo ants shall hear c °rates+ `r.,m
<br />the dair ,j dsbumcment 'At flit Note idle and shall he ray ; ihlr_ -it, intrust. tip,i iwiiOr fr, +ni f c + „lrr in ft,vrrq.awrr
<br />request,nti Isasrnrnt
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