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- 20000Q644
<br /> UNiFORM CovErr.ar�s. Borrower and Lender covenant and agree as follows:
<br /> 1. Payment of Principal and Interest; Prepayment and Late Charges. 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. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall
<br /> pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") for:
<br /> (a) yearly t�es and assessments which may attain priority over this Security Instrument as a lien on the Property; (b)
<br /> yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d)
<br /> yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (� any sums payable by
<br /> Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance
<br /> premiums. T'hese items are called "Escrow Items." Lender may, at any time, collect and hold Funds in an amount not
<br /> to exceed the maximum amount a lender for a federally related mortgage loan may require for Borrower's escrow account
<br /> under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. § 2601 et
<br /> seq. ("RESPA"), unless another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time,
<br /> collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of Funds due
<br /> on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance
<br /> with applicable law.
<br /> The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
<br /> (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds
<br /> to pay the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the
<br /> escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law
<br /> permits Lender to make such a charge. However, Lender may require Borrower to pay a one-time charge for an
<br /> independent real estate tax reporting service used by Lender in connection with this loan, unless applicable law provides
<br /> otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to
<br /> pay Borrower any interest or earnings on the Funds. Borrower and Lender may agree in writing, however, that interest
<br /> shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing
<br /> credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged
<br /> as additional security for all sums secured by this Security Instrument.
<br /> If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to
<br /> Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held
<br /> by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing,and,
<br /> in such case Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up
<br /> the deficiency in no more than twelve monthly payments, at Lender's sole discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br /> any Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the
<br /> acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit
<br /> against the sums secured by this Security Instrument.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br /> paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable
<br /> under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due under the Note.
<br /> 4. Charges; Liens. Borrower shall pay all t�es, assessments, charges, fines and impositions attributable to the
<br /> Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br /> Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower
<br /> shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of
<br /> amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish
<br /> to Lender receipts evidencing the payments.
<br /> Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br /> agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in
<br /> good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion
<br /> operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to
<br /> Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject
<br /> to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien.
<br /> Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on
<br /> the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards,
<br /> including floods ar flooding, for which Lender requires insurance. T'his insurance shall be maintained in the amounts and
<br /> for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject
<br /> to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above,
<br /> Lender may,at Lender's option,obtain coverage to protect Lender's rights in the Property in acwrdance with paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgagee clause.
<br /> Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br /> all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the
<br /> insurance 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 ewnomically feasible and Lender's security is not lessened. If the
<br /> restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br /> applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br /> Borrower abandons the Property, 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 proceeds. Lender may use the proceeds to repair or
<br /> restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period
<br /> will begin when the notice is given.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
<br /> or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the
<br /> payments. If under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and
<br /> proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums
<br /> secured by this Security Instrument immediately prior to the acquisition.
<br /> Form 3028 9/90 (Page 2 of 5 Pages)
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