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86- 005799
<br />L'NIFDR110! COVENANIS Borrower and Lender covenant and agree as follows:
<br />I• pisyweat of Prittr•Lpd Said taberest; PrepnYMM sad Late C101es. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Fwd% for Taxes and Iwsaranee, Subject to applicable law or to a written waiver by tender. Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum (••Funds ') equal to
<br />one - twelfth off_ (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and id) yearly
<br />ttortpoe insurance premiums. if any. These items are called '• escrow items." Lender may estimate the Funds due on the
<br />basis of current 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 by a federal or
<br />state agency (including Lender if !.ender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lawler may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items. unless
<br />Leader 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 interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />rogwres interest to be paid, ]ender 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 showing 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 :c- curiti, for the .ums 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 he.
<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 fall 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 b% 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. .4PPhcation of Payments. unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and'_ %half be applied: first, to late charges due under the Note; second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />i. Gorges+ Lie". Borrower shall pay all taxes• assessments, charges• fine% and impositions attributable to the
<br />Property which may attain priority over this Security instrument, and leasehold payments or ground rents, ifar!v.
<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 %hall promptly furnish to Lender all nouccs of amounts
<br />to be paid under this paragraph If Borrower makes these payments directh. Borrower .hali promptly furnish Io lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any ben which has pnonty over this Secunn Instrument unless Borrower: tai
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable IL, Lender; fbi conte%rs in good
<br />faith the lien bv, or defends against enforcement of the lien in, legal proceedings which an the bender'% opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any pan of the Properly: or (c) secure-, from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the hen to this Secure% Instrument. If Lender determines that am part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may gar Borrower a
<br />notice identifying the lien. Borrower shall satisfy the hen or take one or more of the acnorr%set forth above within Hectors
<br />cif the giving of notice
<br />S. Hazard Irttwriu ee. Borrower shall keep the improvements mew existing or hereafter erected on the Propene
<br />insured against loss b% fire, hazards included within the term "exlendc- coverage" and any other hazards for which I.crader
<br />requires insurance. This insurance shall be maintained in the amount, and for the periods that Lender requires The
<br />insurance career providing the insurance shall tie choscn by BOTroWer suhtect to Lender % approval which shall not t-w
<br />unreasrinably withheld
<br />All insurance l+ohctes and renewals shall he acccptahlc to Lender and hail include a standard mongage clause
<br />Lender shall have the right !o hold the policies and rcncuals. if Linder require•%, borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notice% In the event of loss, Borrower shall give prompt no!icr to the ut%urance
<br />carrier and Lender. Lender may make prwlf(if lcKi. if not made proompt h by Borrower
<br />Unless Lender and Borrower olherwnse agree in writing, mwrxncc proceed% %hall he applied to ri-%toratron or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and lender's security is not le%%cnod If the
<br />restciratum or repair r% not monomn"11% feasible or Lender's sccurtf% would be lessened. the insurance pr<cerds shall be
<br />applied to the suers secured by this Secunfy Instrument, whether or not then glue, with am excess paid to Burrower If
<br />Borrower abandons, the Property. or does not art%wer within ?it day% a ncrfnce front Lendet that the insurance carrier has
<br />ail ed
<br />tr to %title a claim, then Lender may collect the insurance prrxecds Lender may u%r the prcivaerls to repair or restore
<br />the Property cir to pay sums secured hiy this Security Imtrunient, whether or nor then clue The 10-day period will hegm
<br />i when the notice is given.
<br />Unless Lender and Borrower otherwr%c agree nt w Fit nng, any application of ptoeee d% to principal %hall riot extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and '. it change the amount of the pay nient% If
<br />under paragraph 19 the Property is acquired by Lender. Borrower % right to one' inwrance Poilcies and proceed,, resulting
<br />from damage tp the Property prior to the acqursntion shall pass to Lender to the client of the morns secured be this Securny
<br />Instrument immediately prior to the acqunrtion
<br />f. Preservation atad Maintenance of Properll&; L.ease6nlds. Ilorrowc+ %hali not de%rroi,. damage „t %•,h%rarat,ilh
<br />Change the Prciprny, allow the Property to deteriorate or comma waste if this Sccunty Irnrntnient is on a ]raschoid.
<br />Burrovicr shall comply with the provisums of the lean, and if Btirrowrr acquire for talc° to the Proven}. rhe Iea%chuid aixd
<br />fee trtM,:haii not merge utile%s Lender agrees to the merger in writing.
<br />7. PreNes km of Lender's Rights in the Property; MmIXame Insurance. It Harrower fall% an perform the
<br />covenants and agreements contained in this Security ln%irumcnt, or there is a legal pi(oceding that may signrticamly aIfict
<br />I. rWcr'% rights in the Property (sui.h at a procecdmg in hankrupicy. probate. for condemnaton or to enforce law% „r
<br />i
<br />regulations). then Lender may do and }wy for whatever Is neces%an to protect the %clue of the Property and Lender'% rrghrs
<br />to the Properly. Lender'* sctrcm% nnay Include paying any Burns %*cured by it Ifcr, which ha% prlortry „cot tha% ce -urily
<br />Insitu rient, appearing in court. paving rea%rniable attotney%'
<br />fees and cntermg .n, rhe Prntxrte t., make rrp,nr% •lltheugh
<br />I. etider may take action undt:T thi% paragraph 7. Lender doe,. not have ro do %o
<br />And amsure%dtehurKxi by Lander uadct this paragraph' steal? hecomc addiht,na! Icl v •t Hc�r:c,wer secured ht i1n%
<br />Security Imrrunient l.`n1c%s Hn tmitcr and I ender agree fig "abet term% A horror!+ Out attwunts %frail hear inferc't ft+,Ti,
<br />the date 44 dnhwrsenunt at the %olt- ea!e and 'hall MW pia jtilr. soh ;nICIVII ; leers tier,• 1 ruder Hrrn•ucr
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