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86- 107267
<br />UNiFORM COVENANTS. Burrower and Lender covenant and agree as follows
<br />1. Payment of Principal and Interest, Prepayment and Late Charges. Borrower shall promptly pity when due file
<br />principal of and interest on the debr evidenced by the Note and any prepayment and [are charges due under rile Note
<br />2. Funds for Taxes and Insurance. Subject co applicable law or to a written waiver by Lender, Burrower shall pay to
<br />Lender on the day monthly payments are due under the Note, until the Nate is paid in full, a sum ! Funds' l equal to
<br />one - twelfth of: (a f yearly taxes and assessments which may attain priority over this Security Instrument, t b) yearly leasehold
<br />payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and td) yearly mortgage insurance
<br />premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on rile basis of curt ^tit data and
<br />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 ur
<br />state agency (including Lender if lender is such an institution). Lender shall apply the Funds t, pay the escrow items. Lender
<br />may not charge for holding and applying the Funds, analyzing the account or veritying the escrow items, unless Lender pays
<br />Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in
<br />writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest tit be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without
<br />charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to tilt
<br />Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior ro the
<br />due dares of the escrow items. shall exceed the amount required to pay the escrow items when due, the excess ,hall be, aT
<br />Borrower's option, either promptly repaid to Borrower or credited to Burrower on nn;mhly payments of Funds. if the
<br />amounr 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 tit make up the deficiency in one or more payments as required by lender
<br />Upon payment tit full of all sums secured by this Security Instrument. Lender shall promptly refund to Burruwe am
<br />Funds held by [ender if under paragraph P) rile Property is sold or acquired by Lender- Lender shall apply, no later than
<br />immediately prior to rile sale o;f the Property or its acquisition by Lender, any Funds field by Lender at the time of application
<br />as a crczdit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unies..tpphcahir law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and ? shall be applied first, To late charges due under the Note, second, to prepayment charges due under rile
<br />Note, :herd. to amounts payable under paragraph 2. fourth, to interest due, and last, to pr;nctp.ai due.
<br />i. Charger Liens. Borrower shall pay all taxes, assessments, charges, fines and nnposfuons attributable to the
<br />Property which anay .ittafn priorin uvcr this Security Instrument, and icaschold payments or ground rents, if any Burrower
<br />shall pay rhesc,,bhgations in the manner ! ovided fn paragraph 2, or it not paid in that manner, Borrower shall pay them on
<br />ttmr dvectly ry the ixrson ,iwc.d payment Borrowersitall promptly furnish to Lender all notices of amounts ro be paid under
<br />this paragraph If Bairrovtcr ;takes these payfne•nts dtrctdt . Burrower shall promptly furnish to I -ender receipts evidencing
<br />the payments
<br />Borrower shall prinnprly discharge any lien which has priority over this Securn% Instrument unless Ba r iwer
<br />agrees in writing ti the pat rncm if ncc obhgatnrn secured by the lien in r manner acceptable t, Lender b, Lori csts it Lod
<br />fifth the lien bv. or defer is ag.onst enforcement of file lien in, legal proceedings Loh th in the I- enders opinion ,perare ro
<br />prevent the enfurcerttent of the Licit or forfeiture of any parr of the Property. or to secures from the holder of rile lien an
<br />,agreement sat s! ctarr ro Lrt.der sutxrcdnt.atingthe lic❑ to this security Instrufnen.c If Lender dc•ferrrmcs that any part •.,f .lac
<br />Property is subject to a hen which may anion priority over tilts Security Instrument. Lender tnay Erie IioTri>wer a ❑o ice
<br />identifying the lien Borrower shall satisfy the hen or take one or more of rile actions set Corti: above uahfn 10 days.if the
<br />giving of notice
<br />5. Hazard Insurance. Bormwrr shall keep rile tmproverne•nts now ex.stng or hereafter erected on the Propertt
<br />insured against loss by fire. hazards included within the terra extendetid coverage• and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in th m
<br />e amounts and for rile perrods that nt Lender requires The
<br />insurance carrier providing the insurance shall be chosen by Burrower subject ti tenders approval whic.i shall nut be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Iender and shall include a standard murtgagr clause Lender
<br />shall have the right t) hold the policies and renewals. if Lender requires. Borrower sh.cii promptly give to Lender At receipts
<br />of paid premiums and renewal notices. In the event of loss, Borrower shall gne prompt rimice to the insurance carrier and
<br />Lender. Linder may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he, applied to restoration or repair
<br />of the Property damaged. if the restoration or repair is e'<onomically feasible and lender's security is nut lessenr_d. If the
<br />restoration or repair is not economically teasib[e or Lender's sccurin w�iuid be lessened, chi insurance pr<aet,ds cliall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Burrower 11
<br />Borrower abandons the Property, or does not answer within ;0 days a notice 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 rile
<br />Property or to pay sums secured by this Security Instrument, whether or not then due The s0 -day period will begin when the
<br />notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and ? or change The amounr of the payments If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right ui any insurance policies and pnceeds resulting
<br />from damage to the Property prior a) the acquisition shall pass to Lender to the extent of the sums secured by fills 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 shall comply with the provisions of the lease, and if Burrower acquires fee title ti the Property, the• leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Burrower falls to perform the covenants
<br />and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lenders
<br />rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation ur to enforce laws of rrgulazions ,then
<br />Lender may do and pay for whatever is necessary to protect the value of the Property and ender's rights in the Property.
<br />L
<br />Lender's actions may include paying any sums secured by a lien which has priority ove r this Security Instrument, appearing in
<br />court, paying reasonable attorneys fees and entering on the Property- na make repairs Although Lender may take action
<br />under this paragraph 7. Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Burrower secured by this
<br />q.; Security Instrument. Unless Borrower and lender agree it) Other terms of payment, these amounts shall bear interest trout
<br />the date of disbursement at the Note rate and shall lie payable, with interest• upon notice from Lender to Borrower requesting;
<br />payment.
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