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90--106402
<br />UNIFORIM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />11. Payer t of Peiae pd wid Iat"va; pn"ymnt ttai Late Ckwps, Borrower shall promptly pay when dial•
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the NC49-
<br />t Facia for ?am aad lasurance. Subject to applicable law or to a written waiver by Lender. Borrower shalt pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in lull, a sum ( "Funds") equal to
<br />one - twelfth of: (a} yearly taxes and assessments which may attain priority over this Security lnsitument; (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 />'Cite 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 iender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />lmder 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 />"I 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 lasamment.
<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 er.�cmw items. rlrmll exceed the atmunt required to pay the escrow cten when duet the excess slraeD be
<br />at Sdar:mwees atvt'.irau, other promptly repaid to J€crmwer or coedited to )Sonower on mm ,--r Y (pr¢<yOTMIES of Fu.Rds Dff tDas
<br />amount daf Ott Fttsrris• f Ad. by Leader is not suJiic mu. ra pay tike e5mw item Bahr ce ague. Mme r Sb&J, l;a y ra II wrier amf
<br />anxtuat na= -Ary trx mrl,alde alp the deficiency in vae or mare paymemcs as required by Lender.
<br />Glum igayineant in full of all sums secured l;ry' e!iis Sma i:ty Instrument, lender shall promptly refund to B ar ms+ds
<br />any 7=11 iaeeld by lender. If under paragraph Ht Cite Progetry; fs sold or acquired by Bender. Lender shall apply, no later
<br />than imtmuliately prior to the sale of the Propem or its acgaacasimon by Bender. any Funds held by Lender at the time of
<br />appE ca I'm as a credit against the sums secured by this Security Instrument.
<br />3 AppH atlott aid Payments. Unless applicable law provides otherwise, all payments received by lender under
<br />pantgrapHts D 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. Charge Miens. Borrower shall pay all taxes, assessments. charges. flues 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 manner provided in paragraph 2. or if not paid in that manner. Borrower shall
<br />pay than 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 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 to the payment of the 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 forfeiture of any part of the Property; or (c) secures from 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. Hazard Imurame. Borrower shall keep the improvements now existing or hereafter enacted on the Property
<br />insured against loss by tire. hazards included within the term "extended coverage" and any other hazards for which Lender
<br />teores: 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 />unreawnably withheld.
<br />AD insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />tender shill have the right to hold the policies and renewals. if Lender 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 />carrier and Lender. Treader may make proof of loss if not made promptly by Borrower.
<br />Unless Leaderand Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property. damag4 if the restoration or repair is economically feasible and Lender's 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 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 Bender 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 I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Bender, 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 Rights In die Property; Mortgage Insurance. If Borrower fails to perform the
<br />cbvertatitsand•agreements contained in th is. Secuntylnstrumenr, or there iyn.legal proceeding that may, +sigpificantly affect
<br />ftistiidnl,i jiWf6iiii. the Propeny (such as x li6)aa#iing in banlirnptcsl, prubrue for comd.ernnation or t��; emfbrce i %s• or
<br />M.MIJitlf ittts)d iltcau L•' ender rimay dies and pay, f sr w' eTai:ever is necrosm to.proI.W :IJre -a lea• u CIha 2ropert y ac it L andkc s :.,Zr11 M
<br />in tine Property +..1141ti ii. ochrous, may inclWe paying any sums secur.k 1sy� t. lir . %vth -3i, lm$ priority;: � this aw,�61y
<br />Instrument, appe<uiittsltt, co'urt•. paying rea.sLlnableattorneys' fees and ender ng,, an, ihe Veoperty to make M.13rs: l+EJ:t9:eugh
<br />Bender may t&ehctuanunder this paragraph 7,. Lender does not have to db .,sr:.
<br />:Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by tlt
<br />5ecuAy, 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.
<br />11iYi.r •�; �Y
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