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<br />U. %'JFORM COVENAN TS Borrower and Lender covenant and agree as folle>ws: 85..... 003525
<br />I. Pay t of Principal and Interest; Prepayment and Late Charges. Borrower shall rom th
<br />the principal (if and interest on the debt evidenced by the Neste and anv prepay naert and late charges due under f loe Not
<br />p p pay when due
<br />2, Funds the f� Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall�pav
<br />to Lender on the day monthly payments are due under the Note, until the Note as paid in full, a sum ( "Funds ") equal to
<br />p one- twellith OF (a
<br />leasehold ) yearly taxes and assessments which may° attain priority over this Security instruraaerat; (b)
<br />payments or ground rents on the Property, if any; (c) yarly hazard insurance premiums; and (d) early
<br />mortgage insurance premiums, if any. These items are called "escrow items.- Lender may estimate the Funds due on the
<br />basis ofeurrent data and 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 b% a federal or
<br />state agency (including Lender if bender 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 Sys Borrower interest on the Funds and applicable lase
<br />Lender may agree in writing that interest shall be paid on the Funds.ttUnless antagreement cis made ror applicable lase
<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 Funds shoes ing 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 payable 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 late charges due under the Note; second, to prepayment charg
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due. es due under the
<br />4. ages; Hens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable io 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 Borrowef makes these payments directhv. Borrower shall promptly furnish to tender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the hen in a manner acceptable to Lender, (b) contests 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) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security- Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender cony glee Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth ahoye within 10 days
<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 term "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 su
<br />unreasonably withheld. bject to Lender's approval which shall not he
<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 loss. Borrower shall give prompt notice to the insurance
<br />artier• and Lender. Lender may make proof of loss if 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 Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 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
<br />the Property or to pay sums secured by this writ Instrument. whether or not then due. The 30 -da y period will begin
<br />when the notice is given. y
<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 1 and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance Policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sum
<br />Instrument immediately prior to the acquisition. s scared by this Securir
<br />f. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy. damage +u suhstantially
<br />change the Property, allow the :Property to deteriorate or commit waste. If this Security Instrument is or a Islam aald,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />i, PrOtectioal of Leader's Rights in the Pr
<br />covenants and r toperty; 'Mortgage insurance. i` Borrower fails to perfearna floe
<br />ag eements contained in this Security Instrument, or there is a legal proceeding that naay significantly affect
<br />Lendcr*s rights in the Property (such as a proceeding in hankruptev, probatc, for condemnation or to enforce Inns or
<br />regulations), then Lender may do and pay for whatever is nnecessary tea protect t}ae value of the Pro
<br />in the Property. L,ender,s actions may include Ming perty :srad l.erader s rights
<br />p'y g anv runts secured by a lien which has pnorety oycr this Secant%
<br />Instrument, wearing in court. paying reasonable attorneys' fees and entering ore the Property t <' naa,kr rc ^'pairs
<br />LLender may take action under this paragraph ?. Lender dotes not hae c t� � do so 1 A1th <�o�gh
<br />Any amounts disbumed by .1._ender under this paragraph 7 shall hecorne add�t;ora �l Jet), ,�, 13 <�rr�Baer �t t dirca3 >,� ;lase
<br />purity Instrument _ l.Jnkms Borrower and Lender agree to rather terms �ofpavnrerat. Owsc anaa�aatar� b}�,al} c or =fat��r��t
<br />the date of disbur�ment at the dente raate, and shat! be
<br />requesting pay`ment. l�a►db1c, with !?tlt'r(`et, Ujlof's S9i�ts,, iT. at 1 clf,Jc't s•
<br />i a 9
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