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C~NIFOR~1 C0~'t ~AtiTS Horrower and Lender cu~rnant and agrrc a~ fulle»~~ ~
1. Payment of Principal and Interest; Prepayment and Late Charges. HurraHrr ~hall pmrnrtl~ ~a~ ~h~n ~iur
the pnncipal of and ~~terest on the debt evidenced by the Note and an~ prep~~ mrnt ~ind lair rharge~ dur undrr thr ti~~tr
2. Funds for Taxes and Insurance. Sub~ert to appli~able law• ~~r to a w nttrn H aiver b~ Len~i~r, RurruH er ,hall ~a~
to Lender on the day monthly payments are due under the Note, until the Note i, paid in full, a,um ("Fund.") eyual i~~ ;
one-twelfth aL (a) yearly taxes and assessments which may attain priority o~er this Secun~~ Imtrumrnt; (b) yearly '
leasehold payments or ground rents on the Property, if an~~; (r) }~early hazard insurance prenuums; and (d) yearl~• ~
mortgage insurance premiums, if any. These items are ralied "escrow~ items." Lender may estimate thr Funds due on the
basis of current data and reasonable estimates of fuwre escrow items.
~Il~e Funds shull be held in an i~,titution the deposits or accounts ot Hhich arc in.ured or guaranteed b~ a federal or j
,tate agency (including l~:nder if I.ender is su~h an institution). l.ender shall app{~~ the Funds to pa}• the escrow• items. Lender
may not charge for hulding and appl~•ing the Funds, an:il~•iing the account or ~erif~~ing the esrroN item,, unl~ss lxnder p:?~ti
Burro~~er intere.t on the F=und. and applirahlc: law• ~ern~it~ l.ender to make such a charge. A charbe a»etsed h~• l.ender in
runnection uith &~rroN•ers' entering ir~to this Sc.~urit}• Instrument to pa~~ the co~t of an independent tax reporting sen~icc
,hall nut be a charge for purpo,es of the prtYeding sentcnce. &~rroHCr and Lender ma~ agree in writing that interest shall be
paid un the F~unds. Unles~ an agreement is made ar applicable law reyuires intere,t tu be pai~, Lender shall not be reyuired to ;
p~~• E3urruwer an~• interest ar earnings ~~n the Funds. l.ender shall gi~e to Borro~cer, ithout ehargc, an annu:~l 3ccounting of
the Fund. shu~~ing credits and debits to the F-~unds and the purpose for H~hich each debit to thr t=unds Na~ n~ade. Ihe F=unds '
are pledged as additional securit~ for the suml urured b} this Serurit~~ Instrument. ~
tf the amount of the Funds held by Lender, together with the future monthiy pa~~ments of Funds payable prior to
the due dates of the escrow items, shall exceed the amount required to pay the escrow• items when due, the excess shall be, '
at Borrower's option, either promptly repaid to Borrower or credited ta Borrower on monthly payments of Funds. [f the
amount of !he Funds held by Lender is not sufi~icient to pay the escrow items when due, Borrower shall pay to Lender any
amount necessary to make up the deficiency in one or more payments as required by Lender.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptfy refund to Borrower
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall appl~~, no later
than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by l.ender at the time of
application as a credit against the sums secured by this Security Instrument.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
Note; third, to amounts payabfe under paragraph 2; fourth, to interest due; and last, to principal due.
4. Charges; Liens. Borrower shail pay all taxes, assessments, charges, fines and impositions attributable to the
Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
pay them on time directly to the person owed payment. Borrower shall promptly~ furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrower makes these payments directly, Borrovs•er shall promptly furnish to Lender
I receipts evidencing the payments.
Borrower shall promptly diccharge an.~ lien u'hjC}~ hac Yrinrlt~' over this Sec:r~ty Inslrument :.~n!~s Rnrrn;i~~r. `~i
agrees in writing to the payment of the obligation secured by the lien ~n a manner acceptable to Lender; (b) contests in good
faith the lien by, or defends against enforcement of the lien in, legaf proceedings w~hich in the Lender's opinion operate to
prevent the enforcement of the lien or forfeiture of an}• part of the Property; or (c) secures from the holder of the lien an
agreement satisfactory to Lender subordinating the lien to this Securit}• Instrument. If Lender determines that any part of
the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
of the giving of notice.
j 5. Hazard Insurance. Borrower shall keep the improvements now~ existing or hereafter erected an the Property~
~ ins~red against loss by fire, hazards included within the term "extended co~•erage" and any other hazards for which Lender
requires insurance. This insurance shall be maintained in the amounts and for the penods that Lender requires. The
~ insurance carrier providing the insurance shall be chosen by Bc~~rower subject ro Lender's app:oval which shal) not be
~ unreasonably withheld.
i All insurance policies and renew~afs chall be acceptable to Lende~ and shall include a standard mortgage clause.
~ Lendcr shall have the right to hold the policies and renewals. If Lender reyuires, Borrower shall promptly give to Lender
; all receipts of paid premiums and renewal notices. In the event of loss. BorroK~er shall give prompt notice to the insurance
carrier and Lender. Lender may make proof of losc if not made promptly b}• Borrower.
t Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
uf the Property damaged, if the restoration or repair is econornically feasible and Lender's security is not lessened. If the
r restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
~ applied to the sums secured by this Security Instrument, whether or not then due, wiih an}• excess paid to Borrower. If
` Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
~ ofTered to settle a claim, then Lender may collect the insurance proceeds. Lender ma~ use the proceeds to repair or restore
E the Propeny or to pay sums secured by this Security Instrument, whether or not then due. The 30-da~~ period will begin
~ when the notice is given.
~ Unless Lender and Borrower otherwise agree in writing, an}• application of proceeds to principal shall not extend or
postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
~ under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
~ from damage to the Property prior to the acquisition shall pass to Lender to the extent ~f the sums secured by this Security
~ Instrument immediately prior to the acquisition.
~ 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
y change the Property, allow the Property to deteriorate or commit waste. tf this Security lnstrument is on a leasehold,
Borrower shall comply with the provisions of the lease, and if B~rrow~er acquires fee title to the Property, the leasehold and
fee title shall not merge unless Lender agrees to the merger in writing.
7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
L.ender's rights in the Property (such as a proceeding in bankrup!cy, probate, for condemnation or to enforce laws or
regulations), then Lender may do and pay for whatever is necessary to protect the value of tne Property and Lender's rights
in the Property. Lender's actions may include paying any sums secur~d by a lien which has priority over this Security
Instrument, appearing in court, paying reasonable attorneys' fees and entering 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 shall become additional debt of Borrower secured by this
Secunty Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
~ the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
~
~ requating payment.
aoox ~ 1 ~ PAG:1026
~ 7,.a R b 3-_ ~'c ~_.Y.
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