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89-___100336
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. payment of Principal sad Interest; Prepsymeat and Late Ckarges. 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 />Z. A" for Taxes and howasce. 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 sum ( "Funds ") 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 csHW `•escrow items." Lender may estimate the Funds due on the
<br />W6 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 federal or
<br />state agency (including Lander if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lander may not charge for holding and applying the Funds. analyzing the account or verifying the escrow items, unless
<br />Lander 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 showing credits and debits 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 of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items. shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lander is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<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 to 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 prwr to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />applications as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicaWe lam provides otherwise. all payments received by Lender under
<br />paragraphs I and 2 shall be applied: fast, to late charges dire under the Note; second, to prepayment charges due under the
<br />Nate; third, to amounts payable under paragraph 2; forth t o intaen if= and last, to principal due.
<br />4. Merges; Leas. Borrower shall pay all taffies; amesss mm charges, fines and impositions attributable to the
<br />>hiperty which may attain priority. over this Sect=tW Instrum=t" 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 shall
<br />pay than on time directly to the person owed payment. BorrowersW promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to. Lender
<br />receipts evidencing the payments.
<br />Borrower sball promptly discharge any lien which has priority over this Security Instrument unless Borrower: W.
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to lender, (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lendees 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 />agreement 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 />suasive identifying the lien. Borrower shall satisfy the lira or take one or more of the actions set forth above within 10 days
<br />ofthe giving of notice.
<br />S. klaxwd Insurance. Borrower shall keep the improvemn eats now existing or• hereafter erected on the Property
<br />inure against lass by fire, hazards included within the term "extennded coverage" and any other hazards for which ender
<br />requires hisurapm This insurance shall be maintained in the aniqunts and for the periods that LecvJ requires. The
<br />insurance carrier providing the insurance shall be chosen by Bo=wer subject to Lender's approval itihich shall not be
<br />ita�sonably withheld.
<br />AN b srranoe policies and rerretwra6 shall be acceptable to Lender and shall include a standard mortgage dause.
<br />I eader 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 node to the insurance
<br />carrier and Lender. Lender may make proofof loss if<we 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 Lender's security is not lessened. If the
<br />restoration or repair b 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 theca 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 settles a claim, then Lender may collect the insurance proceeds. Leetder may use the proceeds to repair or restore
<br />die-Property or to pay sums secured by this Security Instrument; whether or trot then due. The 30-day period will begin
<br />whenthettAk.p isgiven.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall 'nor extend or
<br />paupone the due date of the monthly payments referred to in paragraphs 1 and.2 or change the amount of the payments. If
<br />tinder paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and 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 Se urity
<br />Instrument ftmuediately prior to the acquisition.
<br />6. Preservation and Maintenance of Properj8, Lembolds. Borrower shall not destroy, darftdr. or substantially
<br />c1mge the Property, allow the Property to deteriorate or commit waste.. ti' this Security Instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acgg.Lm fee title to the Property. the leasehold and
<br />fee title shall not merge unless Lender ogre% to the merger in writing.
<br />' 7. PnAeethm of Leader's Ri=fts In the Property; Mortgage Insurance. If Borrower fails 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 tights 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 make 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 shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
<br />requesting payment.
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