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89- 104062
<br />UNIFORM COVENANTS. &rt Lnverand Lender covenant and agree as follows:
<br />1. Payment of Principal frill, Iutgrest; 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 Note.
<br />2. Funds for Taxes and Im9uratree. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Fender 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: (s) yearly taxes acrd 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 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 df which are insured or guaranteed b . a ('ederal or
<br />state agency (including Lender if Lender is strc�u an institution). LestctEr a0aa11 apply the Funds to $feu the escrow items,
<br />%ender 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 law
<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 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 items when due. the excess shall be,
<br />at 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 snake 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. Lender shall promptly reNnd 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 />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 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. Charges; Liens. Borrower shall pay all taxes, assessments. charges, fines and impositions attributable to the
<br />Property which may attain priority. over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the mai;ner provided in paragraph 2, or if not paid in that. ..trtanner, ,grower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Leader all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall pr9rhotly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall prompt)y.discharge any lien which has priority over this Security instrument unless Borrower. (a)
<br />agrees in writing to the payment ofthe obligation secured by the lien in a manner acceptable to Lender, (b) contests in good
<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 fo£feitlire of any part of the Property; or (c) secures froni the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender ditermines that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Leaden may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or sake one or more of the actions set Earth above within 10 days
<br />of the Saving of notice.
<br />S. Hazard Insurance. Borrower shall keep.the improvements now existing or hereafteir erected on the Property
<br />insured against loss by fire, hazards included iMthitp t.be term "extended coverage 'and and any other Hazards for which Lender
<br />requires insurance. This insurance shall be tiW itained 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 />All insurance policies and renewals Sall be acceptable to Lender and shall include a stttrtdard mortgage clause.
<br />Lender shall have the right to hold the policies and renew s. If Lender requires, Borrower shah promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prom' mpC notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />i3ttless 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 sectir try is not lessened. If the
<br />restoration or repair is not economically feasible or Lenders 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 />offered to settle a claim, then Lender may collect 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 />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 to in 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 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. Preservation and Maintenance 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. Protection of Lender's nights 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 proceeding that may significantly affect
<br />Lenders 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 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
<br />Lender may take action under this paragraph 7, Lender does not have to do co.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by thi,.
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment. these amounts %hall bear micro t fnmi
<br />the date of diibaimoment at the Mote rate and shall he payable, with interest. upon notice from I ender fu Horro"ver
<br />requesting payment.
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