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86-- 106940
<br />'.)VFNANT% Borrower and I_rndrr covenanl itnd agree %%Gallows
<br />of Principal Mad Interest; Prepayment and IAge Charites. dlorniwrr ~hall promptly pay when (flit
<br />interest on the debt evidenced by the Noteand any prepayment and laic charges due under the Note.
<br />r Ta><n nod insurance. Subject to applicable law or to a wnitc •.s c r by Lander. Mirrower shall pay
<br />y monthly payments are clue under the Note, until the Note is pawl m full, a %urn ( "Funds') cqual to
<br />yearly taxes and as%c% %menu% which may attain priority over this Crrurity Instrument; ih) yearly
<br />or ground rents on the Properly, if any; (c) yearly hazard insurance premiums- and (d) yearly
<br />premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />and reaumahle rstimates of future escrow items .
<br />oil be held in an institution the deposits or accounts of which are insured oar guaranteed by a federal or
<br />ling Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />irge for holding arid applying the Funds, analyzing the account or verifying the escrow items, unless
<br />per interest cat the Fonds and applicable law permits Lender to make such a charge. Borrower and
<br />n writing that interest shall he paid on the Funds. Unless an agreement is made or applicable law
<br />be paid. Lender shall nto he required to pay Iorrower any interest or earnings 4111 the Funds. tender
<br />er, without charge, an annual accrnmting of the Funds showing credits and debits to the Funds and the
<br />rich debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />rent.
<br />it cf the Funds held by lender, together with the future monthly payments of funds payable prior to
<br />escrow items, shall exceed the amount required 141 pay the escrow gems when due, the excess shall he.
<br />n, either prr„npily repaid to Borrower or credited to Borrower on monthly payments of Funds If the
<br />s held by Lender is not sufficient M pay the escrow items when disc, borrower shall pay to Lender any
<br />i make up the deficiency in oneor more payments as required by lender
<br />mi in full of all sums secured by this Security Instrument, I.ender shall promptly refund to Borrower
<br />_ender. if under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, no later
<br />rior to the sale of the Pri►Peny or its acquisition by Lender, any Funds held by Lender at the time of
<br />lit against the sums secured by this Security Instrument
<br />kao of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />shall he applied: first, to amounts payable under paragraph 2; second, to interest
<br />to principal due.
<br />Lives. Borrower shall pay all taxes, assessments, charges, lines and impositions attributable to the
<br />by attain priority over this Security instrument, and leasehold payments or ground rents, if any.
<br />these obligations in the manner provided in paragraph 2, or if not paid in that manner. Borrower shall
<br />irectly to the person owed payn►ent. Borrower shall promptly furnish to Lender all notices of amounts
<br />is paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />the payments.
<br />all promptly discharge any lien which has priority over this Security instrument unless Borrower: (a)
<br />the payment of the ohhgation secured by the lien in a manner acceptable In Lender; (b) contests in good
<br />defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />rnenl of the lien or forfeiture of any part of the Property. or ic) secures from the holder of the lien an
<br />Dry to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />jest to a lien which may attain priority over this Security instrument, Lender may give Borrower a
<br />is lien. Borrower shall satisfy the lien or lake one or more of the actions set forth above within 10 days
<br />cc.
<br />Ittsrrrasee. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />This insurance shall he maintained in the amounts and for the Periods that Lender requires. The
<br />providing the insurance shall he chosen by Borrower subject to Lender's approval which shall not be
<br />veld.
<br />cc policies and renewals shall be acceptable to Lender and %hall include a standard mortgage clause.
<br />he right M hold the policies and renewals. if Lender requires, Borrower shall promptly give to Lender
<br />premiums and renewal notices. In the even) of loss. Borrower shall give prompt notice to the insurance
<br />Lender may make proof of lots if not made promptly by Borrower
<br />der and Borrower otherwise agree in writing, insurance pneceds shall he applied to restoration or repair
<br />matted, if the restoration tr repair is economically feasible and Lender's security is not lc%%emud. if the
<br />it is not economically feasible or Lender's security would be lessened. the insurance proceeds shall he
<br />s secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />s the Property, or does not answer within 10 days a notice from lender that the insurance carrier has
<br />laim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />pay sums secured by this Security instrument, whether or not then due. The 10 -day Perim will begin
<br />,•even.
<br />der and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />ale of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. if
<br />q the Property is acquired by Lender. Borrower's right to any m%urancr, policies and proceeds resulting
<br />e Properly prior to the acquisition %half pass to Lender to the extent of the sums secured by this Security
<br />liately prior to the acquisition.
<br />rattles asd Malatesaace of Property; Ustiork". Borrower shall not destroy, damage or substantially
<br />rty, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold.
<br />Wy with the provisions of the lase, and if Borrower acquires fee title to the Properly. the leasehold and
<br />beep unless Lender agrees to the merger in writing.
<br />Us of Leader's Rights in the Property, Moxtpge insurance. If flonower fails to perform the
<br />eementscontained in this Security indrument. or therc as a legal pmcerding Thal may sugnificanlly affect
<br />i the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />Lender may do and pay for whatever n necessary to protect the value of the Properly and Lenders rights
<br />X"der's actions may inchide paying any sums secured by a lien which has pnonly over this Security
<br />rring intouri, paying reasomaMe attorneys fees and entering on the Ptopeny it) make repairs. Although
<br />►cINM under Ibis paragraph 7. Lender does run have to cot so.
<br />of%dt%bursed by Leader under This paragraph 7 shall become additional deht of Borrower se+rured by 1111%
<br />rot. Unless Borrower and Lemler agree to other terms of payment. these amounts shall hear Interest from
<br />foment at the Note we and shall be payable, with tnterro, upon nonce from i.rnder In Borrower
<br />at.
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