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89-- 103275
<br />UNIFOIIM COVENANn Borrower and Lender covenant and ragas as follows:
<br />1. PayMAI of Priadptl and interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal ofand interest on the debt evidenced by the Note and any prereument,and late charges due under the Note.
<br />2. ftads for Taxes and Insurance. Subject to applicable low, mr4o a w rittaq,waivrr by Lender. Borrower shall pay
<br />to Lander on the day monthly payments are due under the Note, until the Note is pald.in full. a sum ( "Funds ") equal to
<br />one- twelfth of: (a) yedrly land-and. assessments which may attain priority over this Security Instrument: (b) yearly
<br />leaehold payments or ground rents on the Property. if any; (c) yearlu%htuard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow itemfO' 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 or verifying the escrow items. unless
<br />Lender psys Borrower interest on the Funds and applicable low-permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unkss an agreement k made dx applkabk Ww
<br />requires interest to be paid, Lender shall not be required to pay-Borrower any interest or earnings an 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 additiottsl security for the sums secured Ill
<br />this Security Instrument.
<br />IFIM amount of the Funds held by Lender. together with the future monthly payments of Futt¢)s, payable prior to
<br />the due dates of the escrow items, shall exceed the amount, required to pay the escrow items when due; th. payable shall t
<br />at Hotmwer s option, either promptly repaid to Borrower of credited to Bonro%*r•on monhhly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay the escrOW items a hen due, Borrower shall t*Y. 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; �:- der shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply. no later
<br />than• immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by Lehder at the time of
<br />application as a q-edit against the sums secured by this. Security Instrument.
<br />S. Application of Psyments. Unless applicable law provides otherwise, all payments received bay Lender under
<br />paragrapbs I and 2 shall be applied: first, to late charges due under the Note; second. to prepayment chargesdue under the
<br />Note; tlri>'d, to amounts payable under. paragraph 2; fourth, to interest due; and last, to principal due,
<br />* `.CbarM Liens. Borrower shall pay all taxes, assessments. charges, fines and. impositions attributable to the
<br />Property wbk+ MOO attain priority - over this Security • Instrument, and leasehold payments or groused. rents, if any.
<br />Borrower shall pay these obligations in -the manner provided in paragraph 2, or if mot paid in that manner. Borrower shall
<br />Pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all nooses of amounts }
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish 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 />agrees in writing tQ the payment of the nhligation smured by tr= riCn iM a mariner accej►saoic to Lander, M contests in good - - - --
<br />faith the Ilea by, or defends against enforcement of the lien in, legal proceedings which in the Lenders 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 art }
<br />areemerrt satisLxeary to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of -
<br />the Property b subject,to a lien•which may attain priority over this Security Instrument. Lender may give Borrower a
<br />notice identifying the lien. Borrowei-shall satisfy the lien or take one or more of the actions set forth ab;v; within 10 days.
<br />of the giving of notice.
<br />S� Hazard Insurance. Borrower shall keep the improvements now existing of hereafter ortxted on the Property
<br />insured against loss: by fire, hazards included within the term "extended covenge" and any other hazards for which Lender
<br />requires insurance phis insurance shall be maintained in the amounts and for thi 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 />unressoaalrly withheld.
<br />All ;insurance policies and renewals shall be acceptable to Lender and shall include a standard. mortgage clause.
<br />.).ender shall have the right to hold the policies and renewals. If Lender requires. Borrower shall, promptly give to Lender
<br />all reoeikt of paid premiums and renewal notices. In the event of loss. Borrower shall•give prompt notice to the insurance '
<br />carders bd Lender. Lender may make proofof toss if not made promptly by Borrower. "
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair ir'.; �'•
<br />of the Property damaged, if the restoration or repair is economically feasible and Lenders 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 Cates paid to Borrower..I£ .
<br />Borrower abandoccs,the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />of1'ef ed tosoiLe ciaim, then Lender may colket 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 />Am the notice is Siven.
<br />Unkss 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 I 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 prior to the acquisition.
<br />6. Presenatiioa and 1llaintenance of Property; Leaseholds. 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 agrees to the merger in writing.
<br />7. Protectiow of Leader's Rights is the Property; Mortgage Insurance. 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 Lenders rights
<br />In the Property. Lenders senders may include paying any sums secured by a lien which has priority over this Security
<br />t tr+str stl, a's •:rg in ewrl. paying reasonable attorneys' fees and entering on tl:c Property Although
<br />to nsake repairs.
<br />Lender may take action under this paragraph 7. Lender does not have to do so. ti
<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 forrower
<br />requesting payment.
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