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UNiPUttrK COVENANTS. Borrower and lender covenant and agree as follows: y v u v v vv
<br />1. Payment of Principal and Interest; Prepayment and Late Charges, Borrower shall promptly,pay. when due`
<br />the principal ofand interest on the debt evidenced by the Note and any prepayment and late charges due uijderthi Npte
<br />2, Funds for Taxes and Insursinee. Subject to applicable law or to a written waiver by Lender, BSrrvsacr3hajlpay ?
<br />to Lender on the day monthly payments are dote under the Note until the Note is paid in fttlt a Sittu C `Furttis) etCual to
<br />one - twelfth of (a) yearly taxes and assessments which may attain priority over this security InstrFincnt'(b yearly
<br />leasehold payments or ground icon on the Property, if Any; (c) yearly hazard ansgt >premtuins acid td'zh
<br />mortgage insurance premiums, if any. These items are called escrow items." Lender may, esttittatc th iYunds due ?nthe
<br />basis of current data and reasonable estimates of f'utureescrow- items.
<br />The Funds shall be hold in an institution the deposits or accounts of whichart insured or gttarantrt d6j a fedezalpr
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay.tti8 eso�v ttettts
<br />Lender may not charge for holding and applying the Funds, analyzing the acccimrror vim y ilg the exrow tema�� ttlesa
<br />Lender pays Borrower interest on the Funds and applicable law permits Lend& to make1licli A pharg Bbtt trek attd
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agrscrrsent is trtadatSr analfcabTt law
<br />requires interest to be paid, tender shall not be required to pay Borrower any interest or earhings on the Fvndik -'r der
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and `debitirtdthe Ftmds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security forflie autos secured by°
<br />this Security instrument.
<br />If the amount of the Funds held by Iender, together with the future monthly payments of Fluids payable.prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due; the excessshallhe;. ,
<br />at Borrower's option, either promptly repaid to Borrower Or credited to Borrower on monthly payments ofP.un&, Ifthe
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender arty'
<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 td 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 Paymenim Unless applicable law provides otherwise, all payments received by Lender-under
<br />paragraphs I and' shall 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 ?, fourth, to interest due; and last, to principal due Al
<br />4. Charger I.:ens. Borrower shall pay all taxes, assessments, charges, ;rocs and impositions a ,—batab c to the
<br />Property which may attain priority over this Security Instrument, and leasebold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph ?, or if not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall p iptiy furnish to Lender all notices of amounts
<br />to be paid under this paragraph, If Borrower makes it.— , payments directly, Borrower shall promptly furnish to Le_ nder
<br />receipts evidencing the payments
<br />Borrower shall promptly discharge any hen which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in wnu i; to the payment of the obligation secured by the lien in a manner acceptlible to Lender; (b) contests in good
<br />faith the lien b, or defends against enforcement of the lien m, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the !fen or forfeiture of any pan of the Properly: 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 subiect to a lien which may attain priority over this Security Instrument, Lender may ,,ive Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above 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 kris by fire, hazard; included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This ins urance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the truurance shall be chosen by Borrower subiect to Lender's approval which shall not be
<br />unreasonably withheld
<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 />ail reccrpts of paid prcrtuutus and rerrowui uotuts.. in the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier 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 econonmcalh feasible and Lender's security is not lessened. Il'the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied w the sums secured by this Security Instrument, whether or not then due. with any excess paid to Borrower. If
<br />Borrower abandons the Properly, 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 pr(wccds Lender may use the proceeds to repair or restore
<br />the Property or to pay sums sctiured by this Security Instrument, whether or not then due. The 30 -day period will begin
<br />when the notice is gtrcw
<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 to paragraphs 1 and 2 or change the amount of the payments. if
<br />under paragraph 19 the Properly is acquired by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Properly prior to the acquisition shall pass to Linder to the extent of the wins secured by this Security
<br />Instrument immediate]} prior to the acquisition
<br />6, Preservation and Maintenance of Property; Leaseholds. Borrower .hail not destroy. daniage or substantially
<br />change the Property, allow the Property it, deteriorate or commit waste. If this Security Instrument Is on a leasehold,
<br />Hot rower shall comply %ari the pros won, of the lease, and if Borrower acquirrs fee isle to the Properic, the lea chold and
<br />fee atle shall not merge unless Lender agrees w the merger in wrung.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insuranc, It Borro,wcr fails t pertoorm th,-
<br />covenants and agreements contained in this Sccunty Insirument.:v there Is a legal pr.xecdmg that Ina, siglittivand'v affect
<br />Lender's rights in !lie Pmpertq tuuch as a proceeding in bankruptcy, probate, fm condcnmaturir or tv enf orce laws of
<br />regulations), then Lender matt do and pay for whatever is nes:ccsan t0 p.roteci the s.ilue of the Prop ero and bender "s rights
<br />in the Prooperty. Lender's actions niay Include paying ally sums wcured by :i ;fen ahi.h has proruy o'er tins Secunt.-
<br />inswment, appearing rn court, paytng reaw>nabie attorneys fees and entering on the Prupem to make repairs Although
<br />Lender may take action under this paragraph ". Lender does not hase to do so
<br />Any arnounisdisbursed by Lender under the, paragraph "shall become iddittoalai debt i,I liorrowcr secured by this
<br />Security Instrument- Unless Borrower and lender agree to other terms cif payment, these amounts shall tear tweics; frI,m
<br />the (laic of disbursement at the Note tdtc and shall be pa)`ahlc, with interest, silts i in.iice from I ende, to lio,rrnwrr
<br />requesting pay =incur
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