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�9--� 103988
<br />UNIi:ORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1, Payweat of PrinclMl stall Interest; Prepayttsat and Late Ckargrs. 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 Note.
<br />2. Fook for Taxes and larmml ea 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 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 any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums. if any. Theme items are called 'escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates offuture escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which am insured or guaranteed by a federal or
<br />state agency (including Lender of I .ender is such an ho0tution). Lender shall the Funds to pay ytc escrow items.
<br />Lender away not charge for h idian artd aplplynt;g the FUrAk analyzing t1tE *oww, q1 vedf, OS- the escrow kms, unkss
<br />leader pap Boarow �t b the Funds and appl%ib,9p law permits l.emcSW to make such ' charge. Borrower and
<br />Lesidet*,ir�s)r agae� �: tat~:iatetxst shall be paid on the Funds. Unless an agreement is made or applicable law
<br />' requires interest to bd paid, LWAkf 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 held by Lender. together with the future monthly payments of Funds payable prior to
<br />the due data of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />W Borrower's option. either promptly repaid to Borrower or credited to Borrower 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 deAdency in one or more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender 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 Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />S. Applledlat of Psymesma. Unless applicable law provides otherwise. an payments received by Lender under
<br />paragraphs 1 and 2 shall be applied: Ant, to late charges due 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, to principal due.
<br />4. Ctim*m Lien, Borrower span pay all taxe% assessments. charges. Ares and impositions attributable to the t
<br />Property which may a' priority over this Security Instrument, and leasehold payments or ground rents, if any..
<br />Borrower shall pay these obliotions 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 l _
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />ts. _
<br />Borrower shall�prompdy discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing tothe payment of the obligation secured by the lien in a mannaaeceptable to Lender. (b) contests in good
<br />faith the lien by. or defaids againat enforcement of the lists in. legal proceedings which in the Lenders minion opewe to
<br />P cam': "i'm cni'mv want of the iien or forfeiture of any putt of the Property; or (c) secures from the holder of the lien an
<br />agreemeit 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 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 giving of n6tic e.
<br />S. 1lasari Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage' and any other hazards for which Lender
<br />requires insuratim'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 �rithheld.
<br />im�
<br />All rance policies and renewak shall be acceptable to Lender and shall include a standard mortgage clause. 7,a L
<br />Leader than have the right 6h to bold the policies and renewals. I! Lender requires, Borrower shall promptly give to Leader, . •
<br />all receipts of palid premiums and renewal notices. In the event of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Leader may stake proof of loss if not 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. I ' 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 insurance carrier has
<br />offend to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair of restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. The 304ay period will begin
<br />when the notice is given.
<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 1 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 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• Pra+servatioa tai Maletenaace of Prober jr; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the ftoperty to deteriorate or commit waste. If this Security instrument is on a leasehold, '
<br />Borrower shall comply with the provisiatu of the lease, and if Borrower "acquires feetitle to the Property, the leasehold and
<br />fee tide shall not merge unless Lga der agrees to the merger its writing.
<br />7• Protectma of it eaMier's ltigMta ito" &e Property; Mor4pW "insurance. If Borm er fails to perform tiie
<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 (aueh as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />L regulations), then Linder may do and pay for whatever 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 this Security
<br />Instrument. appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although r
<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 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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