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<br />89--1103005
<br />UNIFORMC't►VFNkNIS Borrower and Lender cmenant and agreeasfollow%:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the pnncipal of and interest on the debt evidenced by the Note and anN prepaymcnt and late charges due the Note.
<br />under
<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 Note,
<br />the 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
<br />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 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 of verifying the escrow items. unless
<br />Lender pays Borrower interest on the Funds and applicable law Lender
<br />permits to cnrake 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 />in:texest
<br />requires to be period. Lender shall not be required to pay Borrower any interesp, or earnings on the Fund&. Lender
<br />shall shy to Borrower. *tthout chaTge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />lrtatpose for which each dek*it 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 ttems when due, the excess shall be.
<br />at Borrowers option, either promptly repaid to Borrower or credited to Horrower on monthly payments of Funds. if the
<br />amount of the Funds held by Lender 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 requaz...d by Lender.
<br />Upon payment iii full of all sums secured by this Security lnstrumcai2
<br />, tender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Propene is sold or zcqw.red by Lender. Lender shall apply, no later
<br />than immediately prior to the sale of the Property or its acqui %ition by Lc
<br />der, any Funds held by Lender at the time of
<br />application asa credit against thesums secured by this Security Instrument
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 shall be applied: first, to late charges due
<br />under the Note; second. to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last. W, principal due.
<br />4. Clara; Liens. Borrower shall pay all taxes, assessments. charges, fine's and impositions attributable to the
<br />Property wNch may attain priority. over this Security Instrument, leasehold
<br />and payments or ground rents, if any.
<br />Borrower shag pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on time directi,;y to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under; this paragraph. if Borrower makes
<br />these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evident ng the payments.
<br />a Borrower Shall nmmntly d tisrae eery I.... ~.' suet u%.9 Nrsot —ity over this Security instrument unless Borrower: (a)
<br />Bras in writing to the payment of the obligation secured by the lien in a tr^� wner acceptable to Lender; (b) contests in
<br />faith
<br />F _y
<br />good
<br />the lien by, or defends against enforcement of the lien in, legal prv�edings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of an y part cf the Property; or (c) secures from the holder of the lien
<br />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
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<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 etisting or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the terra "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 />i
<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
<br />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 notice to the insurance
<br />-s
<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
<br />proceeds shall be applied to restoration of repair
<br />of the Property damaged, if the restoration or repair is economi ally "feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's se+rci.rity; mould be lessened, the insurance proceeds shall be
<br />applied to the storms secured by this Security Instrument. wi-Let her car .rtot then due, with any excess to Borrower. If
<br />paid
<br />Borrower abandons the Property, or does not answer. within 30 dais a rotEce from Lender that the insurance carrier has
<br />ollered to settle a claim. there Lender may collect the.insurance
<br />proceeds,- L. der may use the proceeds to repair or restore
<br />the. Property or to pay stems secured by this Security Instrument, whether of 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 />postpone the due date of the monthly payments referred in
<br />to 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 Properly prior to the acquisition
<br />shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and ?Maintenance of Properly; Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument leasehold.
<br />,
<br />is on a
<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 in
<br />merger writing.
<br />7. Protection of Lender's Rights 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
<br />proceeding that may significantly affect
<br />Lender's rights in the Property (ouch as a proceeding in bankruptcy, probate. for condemnation or to enforce laws or
<br />regulations), then Lender may do and for whatever
<br />pay is necessary to protect the value of the Property and Lender's rights
<br />L 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
<br />pirt
<br />attorneys' fees and entenng 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 Harrower secured by this
<br />Security instrument. Unless Borrower and Lender agree to
<br />r..
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<br />other terms of pay ment, these amount; 4iall hear interest from
<br />the date of disbursement at the Note rate and %hall he paVahlr- v.ith interest. upon nom:r from I ender io &urower
<br />requesting payment
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