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<br />UrnpoRm CovENAx ', Borrower and Lender covenant and agree as follows: 89-101056
<br />1. Borrower shall promptly pay when due
<br />the principal of and interes t one the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />L Faris ter Ta:esatad 1 wrame. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to Lender on the day montbty payments are due under the Note, until the Note is paid in full, a sum ( "Funds") equal to
<br />one-twelfth of: (a) yearly: oars and aessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments err grvsad runts on the Property. if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mo:tpge iaaurame prxasittms, if aay: These items are called "escrow items" Lender may estimate the Funds due on the
<br />basis
<br />ofcurreat data and r tblea tatesoffutureescrowitems.
<br />The Fundashaltl be held im as instirtttion the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Leader if Leader a such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Iasidet may not charge for holding and applying die Funds, analyzing the account or verifying the escrow items, unless
<br />Leader pays Borrower in teen on the Funds and applicarble law permits Lender to make such a charge. Borrower and
<br />Letrder :nay 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. Lewder shall not be required to pay Borrower any interest or earnings on the Funds. Tinder'
<br />shall give to Borraawr,. w thaut charge; an annual accounting of the Funds showing credits and:debits to the Funds and the
<br />purpose for which each ddu to..the Funds was made. The Funds are pledged as addittamd security for the sums secured by
<br />thisSecurity Insq usnent.
<br />If the artuttmt of the Funds held by Lender, together with the future monthly Mmmilm of Funds payable prior to
<br />the due dater cfthe escrow items, shall c-=4 the ar-ount rewired to pay the escrow iu=,s when, due. the excess shall be,
<br />at Barraweesoption. either promptly repaid to Borrower or &reE ted to lorrower on mci ably payments of Funds. IFthe
<br />anwi m +oftbe Finxis held by Leader is not suds t�pay the escrow items when due, Borrower shah pay to Lazdw. any
<br />1112MUM necessary to make up the deficiency in one or mare payments as required by Lender.
<br />Upon payment in full of all auras secured by this Security Instrument, Lender shall promptly reund tm Wmwer
<br />any Funds behi by Lender • If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply. n o Biter
<br />than i�z 'y prior to the sale of tiro Property or its acquisition by Lender, any Funds held by Lender at the umerof
<br />applic tsi�mama:credit against theiumaseeured by this Security Instrument.
<br />L Appbieatiea of trs*ymrAdL Unless applicable law provides otherwise, all payments received by Lender under
<br />parsg�ngatss 1. =642 shall bees 4WW: fast. to late charges due under the Note; second, to prepayment charges due under the
<br />Note; turd, bre=am Its Mittile under paragaph 2; fourth, to interest due; and last, to principal dues
<br />C , Caioew'Liitars. Borrower shall pay all taxes, assessments, charges. fines and impositions attributable to the
<br />w►thI may attain priority•over this Security Instrument, and leasehrld payments or ground rents. if any.
<br />bxivwig sKMR pay thew oftations in the manner provided in paragraph 2, or ifinot paid in that matmer Morrower shall
<br />pay theme oa timedireetly to the person owed payment.. Borrower shall promptly furnish to Lender all- natives of amounts
<br />to be paid udderthis paragraph. If Borrower makes these payments directly, Borrower shall. pr mpdbtfu #sh to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Inwmwr At lulu IIc,,-rcwer (a)
<br />agrees in writing to the paystusirt of the obligation secured by the lien in a manmwacceptable to Lender., (b) roptests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proccedinp 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 fratn the holder of the lice an
<br />agnenoent satisfactory to Lander subordinating the lien to this Security Instrument. If Lenderdetermines 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 identifyins the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the Riving of notice.
<br />S. Hazard Insarnee. Borrower shall keep the improvements now existing or hereafter erected on the Praperty
<br />insured againdt:low by fire, hazards included within the term "extended coverage" and any ether hazards for which touter
<br />rtitluires tnsur=cc. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />&-jurame carrier providing the insurance shall be chuwn by Borrower subject: to Lender's approval which shall not be
<br />umusonably withheld.
<br />All insurance policirr and renewals shall be acceptable to Lender and shall include, a standard mortgage clause.
<br />Leander shalt have the right to hold the policies and renewals. If Lender requires, Borrower shalt promptly give to Lender
<br />all receipts of }laid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and %ender- Leader may make proof of loss: if itat 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 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 insutnrtce carrierr has
<br />aMiad to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceedss.to repair or restore
<br />the Property or to pay sutras swured by this Security Instrument, whether or not then due. The 30-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing. any application of proceeds to principal shall not extend or
<br />poatpoee the due date of the monthly payments referred to in paragraplhs i and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender. ,Borrowers right to any insurance policies and pnweeds 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 prior to dhe acquisition.
<br />6. Presenatioa aW Malattaasee of Property; Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Property. altos 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. Proteetlois of ItMWa Aidts is the Property: Mortgage Insunace. 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 />l.en&es rights in the Property (such as a proceeding in bankruptcy. probate, for condemnation or to enforce laws or
<br />tegutations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rishis
<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 />Leader 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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