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<br />89d� 103158
<br />UNIFORM. COVENA \TS Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and interest; Prepayment and Late Charges. Borrower shall promptly pay when dire
<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. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Leader. 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 ( "Fonds ") 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 tailed "escrow items." Lender may estimate the Funds dire 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 />Letfdetr may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requites interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />sWijexe to Barret cr, without charge. an annual accounting of the Funds showing credits and debits to the Funds and the
<br />pu" for which each debit to the Funds was made_ The Funds. are pledged as additional security for the sums secured by
<br />this:StGeurity l[Wrtinent.
<br />11 the amount of the Funds held by Il mdeR, together with the future monthly payments of Funds payable prior to
<br />the dice dates of the escrow items, shall excftd the amount required to pay the escrow items when due, the excess sM11 be.
<br />at Bot.r�wet s option, either promptly rep6dc to Borrower or credited to Borrower on monthly payments of Funds. tf the
<br />amount of the Fuzids 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 required by Lender.
<br />Upon payment in full of all sums secured by this Security Instrument, Leader shall promptly refund. to Borroviv r
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired: by Lender, Lender shall.agply. no later
<br />than immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by Lencf� at the time of
<br />application as a credit against the sums secured by this Security instrument.
<br />& ANlicatl a of Paymats. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 shall be applied: first. to late charges due under the Note: seared, to prepayment charges due under -the!
<br />i Note; third, to amounts payable under paragraph 2; fourth, to interest due; and list. io principal due.
<br />6. Charges Liees. Borrower shall pay all taxes, assessments. charges,; fines and impositions att:ritmtabie to the
<br />Property which may attain priority over this Security Instrument, avid 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 them on time directly 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 these payments directly. Borrower shall promptly furbish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />j - y�yi i it iii iiiig iv the paymm -lit oft the obliop"tio . 8 u-n—di 1---the her. in a i!`wR" -w-r ar�wpta�l� 4Q t rntl�r (hl CntltGCtC in IIOOd
<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 fruni 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 of the actions set forth above within 10 days
<br />of the giving of notice.
<br />S. Hawd Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Proppty
<br />insured against toss by fire, hazards included within the term "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 squires The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall me t be
<br />unreasonably withheld.
<br />' All insurance policies and renewals sha1l 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 requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiumsand 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 tender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or rcira:ir
<br />o f the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />resonation 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 d'ue. with any excess.pa;U to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 daycs "a notice from Lender that the iitsiirance carrier has
<br />baled to se0k acclaim, then Lender may collect the insurance pr++c es'c3s. Lender may use the pcaceed's to repair or restore
<br />t1w Property or. to pay sums secured by'ihis Security Instrument, Abet her or not then due. The 30 day period will begin
<br />waiters 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 to in paragraphs 1 and 2 or change the amount of the payments. if
<br />under paragraphs 19 the Property is acquired by Lender, Borrowers 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 />1usfrumcnt immediately prior to the acquisition.
<br />6. Preservation avd. Maintenance of Property; Leaseholds. Borrawi r shall not destroy, damage or substantially
<br />`,"lunge 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 Boiciitver acquires fee title to the Property. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in wrIihng.•
<br />7. Protection of Leader's Rights in the Property; N"gage Insurance. if Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument; e: there is a, i4al proceeding that may significantly affect
<br />Lenders. rights in the Property (such as a proceeding in bankt)dptxy. probrit't, for condemnation or to enforce laws or
<br />regulations). then lender may do and pay for whatever is necesia.r to protect the,. alue of -0't .Properiy and Lender', right,
<br />in the Property. Lender's acttons may include paying any ,ums secured by a lien which his �nano o,er this Securiq
<br />Instrument, appearing to court, paying reasonable attorneys' fee, and entenng on the Property to c A,i! repair, Altlu.ttgh
<br />Lender may take action under this paragraph 7. Lender does not have to do so.
<br />Any amounts disbursed h) Lender under thi% paragraph 7 .hall become additional debt of ilorro .cr ,cL: act ed by tht%
<br />Security instrument. unless iiorrowcr and Lender agree to other term, of payment. these amount. shall hear caterer, fr, •rn
<br />the date of dtaburwnicnt at the Note rate .+ad "hall he piq thle. with uiterc,t. upon notice frr-111 1 ender t III ItIIA16Cr
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