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<br />U NiFURM CaVF.NANts. Borrower and Lender covenant and agree as follows: 89-101333
<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 New.
<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 suns ( "Funds ") equal to
<br />one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument: (bl 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 an 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 />Lender 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 low
<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 helit -by Lender, together with the future monthly payments of Funds payable prior to.
<br />the due dates of the escrow items, shalt. ej�qeed the amount required to pay the escrow items when due, the excess Ad It be,
<br />at Borrower's option, either promptly i add td 11.07rower or credited to P,orroiver on .. r of nthly payments of Funds.:if the
<br />amount of the Funds held by Lenderi.^r, pi:t 5r ftihni to pay the escrow items when clue, Borrower shaff pay to Letitter. arty
<br />amount necessary to maiptup the "akrcy iti p,te4'�rmore payments as required by Len&r.
<br />Upon payment ia: full of all.s wfis� secured by this Security Instrument, Lender. shell promptly refund-to Surmwer
<br />any Funds Teed by Lender. If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, tro later
<br />than immei r priarto the sale of the Property or its acquisition by. Lender, any Funds held by Lender at the time of
<br />application as. credit against the sums secured by. this Security Instrument:,
<br />3. A*ication of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />pars.e,aph5 land 2 shall be applied: first, to late charges due under the N64 second, to prepayment charges due auder the
<br />)ti%t r: third,.to amounts payable under-paragraph-2; fourth, to inta:rest.due; and Last- t o principal due.. ...
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, chri�s, ftncs and impositfursattributYat-21to the
<br />Poperty which may attain priority.over this Security Instrument: and'Leziehold payments or gpmnd rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2_ gar if not paid in that manner, Borrower shall
<br />pay them on time directly to the perwrs owed payment. Borrower shall promptly furn&i. to Lender all notices of amounts
<br />to be paid under this paragraph. If I£nriower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any 5w. which has priority over this Security Instrument unless Borrower. (a)
<br />agrees in writing to the payment of the obligation Fa :ured by the lien in a rrizaner acceptable to Lender; (b) contests in good
<br />faith the lief 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 er 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 Oach may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the Verm.,.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. Hazed Insurance. Sz;arawer shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hamr6i :eluded within the term "extended coverage ' and aay 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 prose& g the insurance shall be chosen by Borrower subject to Lender's appraN aI which shall not be
<br />unreasonattly withheld.
<br />AU insurance policies and renewals shall be acceptable to Lender and shall include a standard mortVsge 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 praru;,f.:s and renewal notice. in the event of loss, Borrower shall give prompt' tumice to the insurance
<br />carrier and Lender. Lerv!er may make proof of lain ifnot 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 />M- .3rrower abandons the property, or does not zn, wer within 30 days a n-5iice from Lender that the Insurance carrier has
<br />ri&red to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proce:i4s 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 />w fwn t he notice is given.
<br />G nless Lender and Borrower otherwise agree in writing, any appi'cation of proceeds to principal shall not extend or
<br />poi pone the due date of the monthly payments referred to in paragraplty. l and 2 or change the arrcu -g of the payments. If
<br />:;:nder paragraph 19 the Property is acquired by Lender. Borrower's rigl' -.:o any insurance policies ;id' proceeds resur m.,-z
<br />from damage to the Property prier to the acquisition shall pass to Lentr;---r ,o the extent of the sums sec,.:red by this SecuT N a
<br />Instrument immediately prior to al eacq-- . ;sitiom
<br />6. Preservation and MaintE ;tI of Frcperty; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property. allow the Pmpeirty to duttricrate or commit waste. If this Security Instrun-,ent is on a leasehold,
<br />Borrower shall comply with the provisions of thu- 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 Borrower fails it) perform the
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly affect
<br />Lenders rights in the Property (such as a prim-ceding in bankruptcy, probate, for condemnation of (v coforue law.,, '4
<br />regulations), then Lender may doand pay for %batever 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 thi% Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to snake repair%. 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 %hall become additional debt of liorrowcr «cured by thi%
<br />Security Instrument Unless Borrower and Lender agree to other term %of payment, these amount,- %hall hear in ere %t froin
<br />the date of dt %hursentent at the %rite rate and shall he payable. i►rth interest. upon notice from 1 eodrr n. Horrower
<br />reque.nn� payment.
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