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86 145212
<br />1'N It iiRM(_nc r l Ati t% Hnrrowri and l ender cnvenant amt agrrr a %Inllows
<br />I. Pavmc1, t of Principal and Interest; Prepayment and i.ale Charges. IJ,errowcr shalt pmaipr[y pa% when 11— the pro ipaI of and interest an the debt evidenced by the Note and any prcpavrnenI anrt lair thargc%dfir under the 'virile
<br />2. Funds for Taxes and Insurance. Suhleet to applicable law or to it wnitc �.i o.r by Lender, Borrower %hall pay
<br />to Lender on the day monthly payments are clac under the Noic, until the ':Vote is pa:if m full, a sum ( "Fond.' "1 equ_11 to
<br />one- twelfth of (a) yearly taxes and msc%sment% which may attain priority over life% Se!curuy in%trumrnt, th) vearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums * and (d) yearly
<br />mortgage insurance premium%, if any These item% are called "escrow item %_" Lender may estimate the Funds (life on the
<br />basis of curreni data and reasonable esnmales of future cwrnw item%
<br />' The Fund% %hail he held in an institution the deposits or accounts of which are insured for guaranteed by a federal nr
<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 mtere%t shall he paid on the Funds Unless an agreement is made or applicable law
<br />requires interest to be Paul, Lender %hall not he required to pay Borrower any interest ter earnings felt the Funds Lender
<br />shall give to Borrower, without charge, an annual accounting of [he Funds showing credits and debit% tie the Funds and the
<br />purpose for which each dchot to the Funds was made The Funds are pledged as additional security for life %um% %ecuecd by
<br />this Sccurov Instrument
<br />If the amount of the Funds held by Lender, together with the future monthly payment% of Fund% payahie prior it)
<br />the if dates o f t he e %crow it em %, %hall exceed the amount required to pay the r%crow oern% when (I tic, the cxcn% sh;oll be.
<br />at Borrnwrr'% option. either promptly repaid no Borrower or crediled to Borrower on rnnnlhls pay mrnts of Funds if the
<br />amount of the Funds held by Lender is not sufficient to pay rile escrow Nctris when due. Itorne%er %hall pay to lender am'
<br />amount necessary no make up the deficiency in one or more pavrncnt%as required by Lender
<br />Upon payment in full of all %ums secured by this Security Instrument, I.cnder shall promptly refund fro Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender. Lender %hall apply, no later
<br />than immediately prior to the sale of the Property or lt% acquisition by Lender, any Fund% held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. An_ otication of Pavrrrentet. I Inlrs, app!_- a':lc ;aw 11 i. i _ otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 %hall he applied: first, to amounts payable under; paragraph 2; second, to interest
<br />due; and last, to principal due.
<br />4. Charges; Liens. Hurrower shall pay all taxes, assessments, charges, lines 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 prionty over this Security Instrument unless Borrower- (a)
<br />agrees in witting to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contest %in good
<br />faith the lien 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; or (c) secure% from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the hen to this Secunty Instrument- if Lender determines that any part of
<br />the Properly, is sub)ect to a lien which may attain prionly over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien- Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />S. 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 term "extended coverage" and any other hazard% for which lender
<br />requires insurance- This insurance shall he maintained in the amounts and for the periods ihat tender recfinre% The
<br />insurance car.;c- providing the insurance %hall he chosen by Borrower subject to Lander'% approval which shall not he
<br />unreasonably withheld
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the 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 Ins,, Bxrower %half give prompt notice-, the in%urance
<br />carrier and Lender Lender may make proof of loss if not made promptly by Borrower
<br />Unless bender and Borrower otherwi %c agree m% tit ing. trnurmice prtxerxl% %hall he applied to re%horatnrn or repair
<br />of the Property damaged, of the remoranou or repair its etonomically feasible anti Lcadcr'% security is not lc%%ened If the
<br />restoration or repair is not economically feasible or lender's security would he lessened, the insurance proceeds shall tic
<br />applied to the stuns secured by this Security Instrument, whether or not then duc, with any excess paid to Borrower If
<br />Borrower abandons the Property, or doe% not answer within 70 days a notice from Lender that the insurance carrier has
<br />offered h, settle a claim, then Lender may collect the insurance proceeds Lender may use the prx-eed% to repair or re400re
<br />the Property or to pay sums secured by this Security Instrument. whether or not then due. The 30-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree tit writing, any application of proceeds to principal shall not extend or
<br />Ixostpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments If
<br />under paragraph 19 the Property is acquired by Lender. Hornower'% right too any inwrance policies and prncerd% resulting
<br />from damage to the Property prior to the acquisition %hall pass to Lender to rife extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds, Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste If this Security Instrument is on a leasehold.
<br />Borrower %hall comply with the prof,mon s ofthe lease. and if Borrower acquires fee title to the Property, the leasehold anti
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Willits in the Property; Mortgage Insurance. If Burrower falls to Perform the
<br />covenants and agreement %contained in this Securely instrument, or there is a legal proceeding [hat may significantly affect
<br />Lender's rights in the Property (such a% a proceeding in bankruptcy, probate, for coodernnanon or in enforce laws or
<br />regulation%), then Lender may do and pay for whatever is necessary to protect the value of the Properly and Lender'% rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing to court, paying reasonable attorneys' fees and entering on the Property to make repair%. Although
<br />Lender may take action under this paragraph 7, lender doe%not have to (lo so
<br />Any amount% disbursed by Lender under t his paragraph 7 %hall become additional debt of Borrower %ecurrd by the%
<br />Security Instrument Unless Borrower and Lender agree In other term %of payment. ihe%c amounts %hall bray eurrem from
<br />the date of disbursement of the Nule cur and shall he payable, with uucrest, upon nnocc from I ndct to Boeroxer
<br />requesting payment
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