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89... 10024'
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges, Borrower shall pr. ompily pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges Clue under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a rium ( "Fonds ") equal to
<br />one-twelfth of. (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis 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 by a fcdcral or
<br />state agency (including Lender if Lender is 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 />Leader pays Borrower interest on the Funds and applicable law permits Lender to make such; a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest, or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds shew•inS credits and ddbits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrument,
<br />If the amount oTthe Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates etif the escr ;w.items, shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />At Borrower's option, neither promptly repaid to Borrower or credited to Borrower on monthly .payments of Funds, lithe
<br />amount of the Funds heU by Lender is not sufficient to pay the escrow item, s when due. Borrower shall pay to Lender any
<br />anioun't necessary to make up the deficiency in one or more payments as required by Lender.
<br />Upon payment ie full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds'hdd by Lender. If under graph 19 the Property is sold or acquired by Lender, Lender shall apply, .no later
<br />than imnvdiately prior to the sale of to Property or its acquisition by Lender, any Funds heldl by Lender at the-time of
<br />Application as a credit against the sums secured by this Security Instrument,
<br />3. Appliatioi of Payments. Unless applicable law provides ot:hemise, all payments received by Lender under
<br />paragraphs I and 2 shag be applied: first, to late charges due under the Note; second, to prepayment charges due under the
<br />Note; third, to amounts paiyable under paragraph 2; fourth, to interest due;'and last, to principal due.
<br />4. 0arges; Leas. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may aittain priority over this Security Instrument, and leasehold payments or ground rents, if sng.
<br />Borrower shall pay thtm obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid um4t this paragraph. If )rower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evi&cing the payments.
<br />B©rmwer shall promptly discharge any lieu which has priority over this Security Instrument unless Borrower: (a)
<br />a-- erec.in writing _''_o rg r pA.;r„.•.«t — — ewlia�ti0. ^. .tr�.d i'ij the liar iii o,:�a;tilcr 8a%cNia`vlc iu sacnder; ('o) contests in goad
<br />fi�ti h the lien by. or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agroetnent`Satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give 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 />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards incruded within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject 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 shallipromptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the ensurance
<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 economically feasible and Lenders security is not lessened- If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proce&U shall be
<br />applied to dle.sums secured by this Seaid l Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or aoes'not answer wititin 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the f.nsura'nce proceeds. Lender may use the proceeds to repair or restore
<br />the•Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-da y period will begin.
<br />when the'natuce is given.
<br />Unlei si leuder and Borrower otherwise agree in writings may application of proceeds to principal shall not extend or
<br />postpone titiidue date of the monthly payments referred to in paragraphs I and 2 or change the amausi.t of the payments. if
<br />urdec para j iaph 19 the Ptnperty is acquired by Leader, Borrower's right to any insurance policies an:d proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrumen'dMinediately prior to the acquisition.
<br />6. Peieservatioa and Maintenance of Propery; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrowerifails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to makr_ repairs. Although
<br />Lender may take action under this paragraph 7. Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shallbear interest from
<br />the date of disbursement at the Note rate and %hall be payable. with interest. upon notice from t ender to Borrower
<br />requesting payment.
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