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<br />89-. 100458
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payweat of Prlaeipal &M 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, Fmisde for Taxaa and Insarance. 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 called "escrow items." Lender may estimate the Futtds 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 federal 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 showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was mach The Funds are pledged as additional security for the sums secured by
<br />this Security Laatrument.
<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 item% shall exceed the amount required to pay the escrow items when dm the excess shall be.
<br />at Borrowmes option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount d* the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necesmiry 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 />swy colds held by Lender. If under p:wqograph In, the Property is sold or acquired by Lender, Le nder sl'iall apply. no later
<br />than immediately prior to the sale ottbe Property'or its acquisition by Lender. my Funds held by Lender at the time of
<br />application as &credit against the sutra senred by this Security Dwrument.
<br />3. Agegfb OdIon of ftyaresita... Unless applicable law prsvides othervise,•all payments received by Lender under
<br />paragraphs 1 m df 2 shat! be applied: first, to late changes due under the Note;_ second, to prepayment charges due under the
<br />Naft third, to amounts pays►ble under paragraph Z; €durth, to interest due, and last, to principal due.
<br />4. Chaimm LIM& Borrower shall pay all taxes, assessments, charges. fines and impositions attributable to the
<br />Prop" *hkh• may attaitb ,imority_ exer this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these options in the manner provided in paragraph Z 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 tinder this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shah promptly discharge any inn which hss priority over this Security instrument uniss Borrow= = ()
<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 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 />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 />notice identifying the lien. Borrower shall satisfy the lien or take one or more 4 the actions set forth above within 10 days
<br />ofthe givingofnotide.
<br />S. Hazard Ina rattce. Borrower shall keep* the improvements now exWng or hereafter erected on the Property
<br />mumfed against Iola by fire„ hazards included within the term "extended coverwe' 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 Betmwer subject to Lender's approval which shall; not be
<br />unreasonably withheld.
<br />All insurance potider and renewals shall be acceptable to Lender arse$ shall include a standard mortgage clause.
<br />Lender :heal have the right to hold the policies and renewals. If Lender requim Borrower shall promptly give to Lender
<br />all receipts.dpaid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Leader. 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 said Lender's security 4 not lessened. If the
<br />restoration or repair is not economically feasible or Leader's security would be lessened, the insuranva 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 card a has
<br />ofiaed to settle a claim, then Lender may collect the insurance 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-day period will begin
<br />when the notice is givev.
<br />Unless Lender a" Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1. and 2 or change the amount of the payments. If
<br />under 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 Security
<br />Instrument immediately.pdor to the acquisition.
<br />6. Presmatim and Maintenance of Pro"; Lembolds. 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 agreea to the merger in writing.
<br />7. Protection of Leader's Rights in the Property; Mortgage lasurance. 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 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 msy include paying any sums secured by. a lien which has priority over this Security
<br />Instrument, appearing in court. paying reasonatste attorneys' fees and ente6ng an the Property to make repairs. Although
<br />Lender may take action under this paragraphs 7,. Leader does not have to daso.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additiarA debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest froth
<br />the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
<br />requesting payment.
<br />AV,
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