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UN~~roR~t Cov~.N~t~rrs. 8orrowcr and i.ender covenant aj~d agrce as follows:
1. Paye~eat ot Priadp~l ~d Iateres~ Prepaymeat and Lte C~sr~. Borrower shall promptly pay when due
the pnncipal of and interest on the debt evidenced by the Note and any prepayment and late charges duc under the Note.
2. Fuods [or Ta~ca iiad Ia~surance. Subject to applicable law or to s written waiver by Lender, Borrower shall pay
to Le~~der on the day monthly paymenta ut due under the Note, until the Note is paid in full. a sum ("Funds") cqual to
one-tv?~elRh of: (a) yeuly taxes aad assessmrnts which may attain priority over this Security lnstrument; (b) yearly
leasehold payments or ground rents on the Pmperty. if any; (c) yearly hazard insurance premiums; and (d) yearly
mortgage insurance premiums, if any. These items are calltd "escrow items." I.tnder may estimate the Funds due on the
basis of current duta and ressonable estimates of futun escrow items.
The Fun.is shall be held in an inatitution the deposits or accounts of which are insured or guaranteed by a federal or
state agency (including Lender if I.ender is such an institutioa). l.ender shall apply the Funds to pay the escrow items.
Lrnder may not chuge for holding and applying the Funds, analyzing the account or verifying the ea:row items. unless ;
Lrnder pays Bomower interest on the fi~nds and applicsble !aw permits I.ender to malce such a charge. Bonower and
Lender may agree in writing that intenst shall be paid on the Funds. Unless an agreement is made or applicable law
roquires interest to be paid. I.ender shall not be nquirod to pay Borrower any interest or earnings on the Funds. Lender ~
shall give to 8onower. without charge, an anaual accounting of the Funds showing credits and debits to the Funds and the '
purpose for which each debit to the Funds was made. 'I`he Funds an pl~dged as additional security for the sums sccured by
this Sccurity Instrument. ~
If the amount of the Funds held by I.tnder. together with the future monthly payments of Funds payable prior to :
the due dates of the escrow items. shall eaccxtd the amount required to pay the escrow items when due. the excess shall b~, {
at Borrower's option. either promptly repaid to Borrower or crodited to Borrower on monthly payments of Funds. If thc
amount of the Funds held by I.ender is not sufficient to pav the escrow items when duo, Borrower shall pay to Lender any s
amount nxessary to make up the deficiency in one or more payments as roquired by Lender. 4
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower ;
any Funds held by L,ender. If under paragraph 19 the PropeRy is sold or acquired by I.ender, Lender shaU apply, no later
than immodiately prior to the sale of tht Property or its acquisition by Lender, any Funds held by I.ender at the time of
application as a credit against the sums socured by this Socurity Instrument.
3. Applkadoa of Payments. Unless applicabk !aw provides otherwise, all payments received by Lender under
paragraphs 1 and 2 shall be aRplied: first, to late charges due under the Note; sxond. to prepayment charges due under the
Note; third. to amounts payabk under paragraph 2; fourth, to interest duG and Iast, to principal due.
4. Cbarge~ Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the ~
Property which may attain priority over this Socurity Instrumrnt, and leasehold payments or ground rents, if any.
Bonower shall pay these obligations in the manner provided in paragraph 2. or if not paid in that manner, Borrower shall : i
pay them on time directly to the person owed payment. Borcower shall prompily furnish to Lender all notices of amounts
to be paid under this paragraph. If Bomower makes these payments directly. Borrower shall prompt ly furnis h to L
en der
receipts evidencing the paymrnts.
Borrower shall promptly discharge any lirn which has priority over this Security Instrument unless Borrower: (a) ~
agrces in writing to the payment of the obligation securod by the Grn in a manner acccptable to Lender, (b) contests in good '
faith the lien by, or defends against enforcement of the lirn in. legal procoedings which in the Ltnder's opinion operate to ;
prevent th~ enforcement of the lirn or forfeitun of any part of the Property; or (c) secures from the holder of the lien an
agree~ent satisfactory to I.tnder subordinating the lien to this Security Instrument. If Lender determines that any Qart of
the Property is subjoct to a licn which may attain priority over this Sxurity lnstrument. I.ender may give Bonower a
notice identifying the lien. Borrower shall satisfy the lien or take one or mort of the actions set forth aE+ove within 10 days
of the giring of notice.
S. Haurd Insaraace. Borrower shall keep the improvements now caisting or hereafter ercctod on the Property
insurod against loss by fire, hazards includ~d within the term "extended coverage" and any other hazards for which Lender
requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. 'The
insurance carrier providing the insurance shall be chasen by Borrower subjoct to I.ender's approval which shalt not be
unrcasonably withheld.
All insurance poiicies and rrnewals shall be acceptable to I,ender and shall include a standard mortgage clause. ;
Lender shall have the right to hold the policies and renewals. If Lender roquires, Bonower shall promptly give to Lender
all raxipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
carrier and I.endet. Lender may make proof of loss if not made promptly by Borrower.
Unless Lender and Bonower oiherwise agroe in writing, insurance proceeds shall be applied to restoration or repair
of the Property damaged, if the restoration or repair is xonomically feasible and Lender's security is not lessened. If the
j restoration or repair is not economically feasible or Lrnder's security would be lessened, the insurar~ce proceeds shall be
~ applied to the sums securod by this Security Instrument, whether or not then due, with any excess paid to Borrower. If ~
E Borrower abandons the Property, or does not answer within 30 days a notict from Lender that the insurance carrier has
offered to settle a claim. then Lender may coUect the insurance proceeds. I.ander may us~ the procxeds to repair or restore
the Property or to pay sums s~cured by this Security Instrument. whether or not then due. The 30-day period wiil begin
when the notice is given.
Unless Lender and Borrowor otherwise agree in writing. any application of proceeds to principal shall not eatend or
F,ostpcme the d~ee date of the monthiy payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
under paragraph 19 the Property is acquirod by L,a~der, Borrower's right to any insurance policies and procads resulting
from damage to the Pmperty prior to the acquisition shall pass to Lrnder to the extent of the sums socured by this Security
Instrument immodiately prior to the acyuisition.
€ 6. Presenatlon and Malntenance oi Property; L~olds. Borrower shall not destroy, damage or substantially
~ change the Property, allow th~ Property to deteriorate or cammit waste. If this Security Instrument is on a leasehold,
~ Borrower shall comply with the provisions of the lzase, and if Borrower acquires fa title to the Property, the leasehold and
fee title shall not merge unless Lenda agras to the merger in writing.
7. Protection oi Lender's Itigbts in t6e Property; Mortgsge Insurance. If Borrower fails to perform the
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affxt
Lender's rights in the Property (such as a procading in hankruptcy, probate, for condemr?ation or to enforce laws or
~ regulations), thrn Lender cnay do and pay for whatever is necessary to protxt the value of the Property and Lender's rights
in the Property. Lender's actions may include paying any sums secured by a lirn which has priority over this Security
? Instrument, appcaring in court, paying reasonable attomeys' fas and tntering on the Property to make repairs. Although
~ Lender may take action under this paragraph 7, Lender does not have to do so.
~ Any amounts disbursed by Lender under this paragraph 7 s6a11 becomt additional debt of Bonower socured by this
Security Instrument. Unless Borrower and Lender agee to other terms of paymtnt, these amounis shall bear interat from
the date of disbursement at the Note rate and shall be payable, with interat, upon notice from I.ender to Borrower
requesting paymrnt.
Bo~49? ~~E 92~
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