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<br />L'....'FORM COVE!'\:ANTS. Borrower and Lender covenant and agree as follows: 84 ~ 003396
<br />1. Payment of Principal and Interest; Prepayment and Late Charges, Borrower stall promptly pay when due
<br />I he prtl1<.:ipal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the SOIC'
<br />2, Funds for Taxes and Insurance, Subject to applicable law or to a wrillen waiver by lender, Borrower ,hall pay
<br />!O Lender on <he day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") cqualto
<br />onc-rwelfth of: (a) yearly taxes and assessments which may altain priority over this Security Instrument: (b)' yearly
<br />Ic..ehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage in\urance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />hal',is 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 hy a federal or
<br />state agency (including Lender if Lender i~ 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 ray.. Borrower interest on the Funds and apphcable law permits Lender to make such a charge. Borro\\'er and
<br />Lender may agree m writing that interest shall be paid on the Funds. Unless an agreement is made or applicahle law
<br />require", Interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />,hall gJ\e 10 Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and lhe
<br />purp",e for whleh each debit 10 the Funds was made. The Funds are pledged as additional security for the sumS secured by
<br />lhis Security Instrument.
<br />If the amount of the Funds held by Lender, together'Wllh the future monthly payments of Funds pay'able prior to
<br />~h,-' due dat::~, of the cscro'w' items, shall exceed ioe amount required to pay the escrow items when due, the excess shall be,
<br />al Borrower', option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amounl c,f Ihe Funds held hy lender is not sufficient to pay the escrow items when due, Borrower shall pay to lender any
<br />amount nece"ary to make up the deficiency in one or more payments as required by Lender.
<br />Cpon payment in full of all sums secured by [his Security Instrument, lender shall promptly refund to Borrower
<br />on\' Funds held by lender. If under paragraph 19 the Property is sold or acquired by lender, Lender shall apply, no laler
<br />than Immedlately prIor to the sale of the Property or its acquisllion by lender, any Funds held by lender at the time of
<br />;tppllcJ.lIon as. a credit against the sums secured by this Security InstrumenL
<br />3, Application of Payments, Unless applicable law provides otherwise, all payments received by lender under
<br />r3ra~r3rh" J and :2 shall be applied: first, to late charges. 'jnder the Note; second, to prepayment charges due under _the
<br />"ote: [hird, to amounts. payable under paragraph 2; fourth. .u interest due; and last, to principal due.
<br />4. Char~es; Liens. Borrower shall pay alllaxes, assessmenls, charges, fines and impositions attributable to the
<br />Property \.1.hlcn may 3[t311l priority ov'.-:!'" this Security Instrument, and leasehold payments or ground rents, if any,
<br />Borrower ..,h:dl ray these obligations in the manner provided in paragraph 2. or if nul paid in that manner. Borrower shall
<br />ra~ [hem on l1me dlrectly 10 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 dJrectly, Borrower shall promptly fumish to lender
<br />receipts endencing the payments.
<br />Bt\rrower shall promptly discharge any lien which has priority over this Security Instrument-unless Borrower:-(a)
<br />agree~ In wfltlng [0 the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faHh the hen by, or defends against enforcement oCthe Hen in, legal proceedings which in the Lender's opinion operate to
<br />pre\cnt the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agn:C'ment sausf3ctory to Lender subordmating the lien to this Security Instrument. If Lender determines that any part of
<br />lht: Prnreny h subject to a lien which may attain priOrity over this Security Instrument, Lender may give Borr,-1wer a
<br />IW1H,:e IdentifYing the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above wHhin to days
<br />t)f [he gl\ mg of notIce.
<br />5. Hazard Insurance. Borrower shall keep the Improvements now eXIsting or hereafter erech:d on the Pr()perty
<br />ll1..urtJ :-1g3inst loss by fire, hazards included Within the term "exh::nded coverage" and ;;my other hazards for which Lc:nder
<br />requlrt'~ ll'hUranCe, This IT\surance shall be maintamed Hl the amounts and for The peflc~is that Lender require;;" The
<br />lII,>ur:JllCC' (:J,rna providmg the insurance shall be chosen by Borrower subject to Lender's approval which ~h311 not be
<br />u!lrt'a~l.mabl) withheld.
<br />:\lll1lsuranct" policies and n:newals shall be acceplablt: tu Lender and shall Indud;: a standard mortgage daus,(.
<br />Lender ..hall have {he nghllO hajd the polici~ and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />:lll rt'ct'lp!"I (~f paid premiums and renewal nutice-s. In thc t\-cJH of io~s. Borrower shaii give prompt nollce to lhe tn'iurance
<br />(,uricr and Lender. Lender may make prck)f of loss if not made promptly by Borrower.
<br />Unless Lender and Borrowci otherwise agree in writing, Insurance pn:x;eeds shaH be applied to restoratIOn or repaIr
<br />nf the Propert) damaged. if the restoration or repair is economically feasible and Lender's security is nOllessencd. If the
<br />r6wralioo or repair 15 nO( economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />J.rplled h) the sums. s-ecure-d by this Security Instrument, whether or not then due, with any eAcess paid to Borrower. If
<br />BQrrl.1\\.er abandons the Property. or does nOi answer Within 30 days a notiL:c from Lender that the Insurance CiHrler has
<br />l)!'f~rt::J 10 :--euh: a daim, then Lender may collect the in~urance prc)t,:ceds. Lender may U':oC the proceeds to repair or restore
<br />the Pro~ny or to pay "ums secured by thIS Security Instrument. wherhe'r or not then due. The 30-day paiod ....-i11 begin
<br />\~ hen the lwtIte is given.
<br />t. nless Lender and Borrower orherv.:rjc agree In wr!illlg. an~ Jpp!lcailon of prc....:t't:ds to pfJnclp~1 shall flI..){ c\k"nJ \,H
<br />r.).;.tr'dne rhe due date of the monthly paymeTlt:-. referred to in paragraphs 1 and 2 or change the amount ofthc ray TlH:'llh. If
<br />':.~nJt:r paf3g.raph 19 the Property IS acquired by Lender. Borrower's right to an)- lll')uraTlCe poliCies and prl.x'ccJ.. r(""ulllll~
<br />fr,'ill damage 10 the Property prior to the al:qulsillon shall pas~ to Lender ro the C.li.ltnt oftbe S.Unl\ st'cul"eJ by thl'" SCCUfll~
<br />In\lfumcnt Jnllnedlately pnor to the acqUlsiti,)fl
<br />6. Preservation and :\1aintenance of Property; Leas-eholds, Borro\l,-er shJ.ll nol dc:,tf\,)). darnaF-.t' 1)[
<br />..:h<i-i"lfC tlle Pruperty, ailow the Property 10 dctcflorate or C',)01mit \\Jstc_ If thiS Ser.::uruj In:;:rufl1eflt I" ,In a
<br />Bt\n,~\I,(r "hall comply with the provisions of the: leas.e, and if Borrower a\.'qulres fet: wit' It) the Prppeny. lhe k~p,('hl.}!J a:;J
<br />fC':.' tlth.:' ~hi.tli not merge unkss Lender agrees to the merger 1Il wntmg
<br />: Protection of Lender's Rights in the Property; :'\tortgagt Insurance. It' !3orrl.)\l;er Lnh 10 pl_'rtl.\[lll [h~
<br />..:C'\ tll..tl\h and agreements (On13mcd In thIS Se(:urHY Ins[rUmcfH. or there 1<' a l-egai rw...:eedmg thaI m.1Y ~lflnl\'_'.ll~!;:' .lll"en
<br />Ll.:'lllk'r." nght~ 11\ the Property {such as a pr0i.~ccding 10 bankruptq. priJbatc. for ('omlemnau,m ~)r \n Cd,lf,:" ;.t\\" ,If
<br />fI:gli:.1~H\n~1. then Lender may do and pa)- for," hattVCf is- IlCCeSS<:if: ill prutt';,:i Ih(' \::dut' \..)f Ihe Propcn: ~Hh1 t ('lld,.l.' r:~hh
<br />tht: Propt:rt:-. Lendr:f\ aClJons may lnclUlh: paymg an) ~unb "('cured b) :l hen \\tuch lu.... rr:l.lfll'. (".tl ~h~" '-l'~\l:;['.
<br />in"lfumt'!ll "tnr)l:ann~ ~n ('nur!. ra,;~:~g. :'::Js~;;;~~bk a,iolilt:~~' ftc" dlll..J .;nlcrlf\~ ,'1l111~ l'rppcn" [II 11\,11"': rt"~;,l:l" 'ud'
<br />LcnJcf 1!!~) !i:kt: ,,ldi:;n under Ihl~ t)aragf..tph -'. Lender J~~ nut ha\c 1~\ Jp",P' ~ .
<br />.\n) .;.tPll1Uo;" d!~bur"-t:;J b) Lendef i.mue. thiS pM.1gr .lph -. ..h;lll t-.c,--,-'nlt: ;jJditl~"na~ J<:b: \,j Btl!"k\\. c: ..,':,
<br />~e'l..'U~H;. IlJ\HUI11t:Hl Cnlt:s::. Borrowtf ilnd 1 tcth,k\' dgr~c lil (Hiler (t.rr!),> .,r 1'.1.... m~n~, dtt.'\t" ;.Hfh'1.l11h ,.h.\~~ 1)(.'"..1,
<br />n\~. \l,i:l<: dl\htlt':>tll1eOI at the SOk f4tt~ Jrhl "hIlI! ht pJYJ.h!c, y..,!h !'1trU."..,1. ~;i"ln ,k'::\."'.' hl-'I!: [(""L-'
<br />;t.:qt.t:.,tH~~ r'IJ,\rncnt
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