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94- 406690
<br />UNIFORM COVENANT'S. Borrower and Lender covenant and agree as follows.
<br />1. Paytt tat of prisdpal aced laterattl prepaymeat turd late Cbarga. 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. Feeds for Taxes and Issuraate. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to Linder 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: (al~ 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 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 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 balding and applying the Funds, analyzing the account or verifying the escrow items, unless,
<br />Leader pays Borrower interest on the Funds an:d applicable law permits lender to make such a. charge. Borrower and
<br />Lender may agree in writing ttirat iizflerest :;ii&u ire pail un the L- 'ujjd.,. UnIcss +tar agi-to cent is made or applicable law
<br />regtamm interest to he paid. t4alrx sJi4 -A mrg.15e inquired to pay Borrower any intro -At or r3rrnings on the Funds. L,ct user
<br />s'haiati 4 tto l ttr0 a writits>tut; rl} ,W1-' rarua:G mccounting of debits to the Funds mti the
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<br />INS, S=a a:l t Ltr +JrsYarl:•
<br />EffLie a»1; tX-t:he Fixwka held by IIretadw, zoge%her uia h the (inure rrienahly pa)mwnts of Funds payable prior to
<br />the clue dates of tk escrow items. shall exceed t'ihe amount required to; pay the escrow items when due, the excess shall be,
<br />at Borrower's opxon. either promptly repaid to Harrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not suf dent 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 Rill 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 sate 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. Appliatiaa of Payseesta. 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. CbwM Lieu. 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 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 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 Insurance. Borrower sbalt keep the improvements nou existing or hereafter erwed on the Property
<br />insured against loss by fire, hazards included with n the tens "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 requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subect to Lenders approval which shall not be
<br />unrew4nably vnthbeld.
<br />All insurance policies and renewals shall 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 premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make 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 oz repair
<br />of the Property damaged, 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 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 t 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 Properily; 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 the Property; Mortgage Insurance. if Borrower fails to perform the
<br />covenants and agreements comained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rigltlii. ut the Property (such as a proceeding in bankruptcy. probate, for condemnation or to enforce laws or
<br />reg gations), t?hm Gender may do and pay for whatever is necessary to prm_ecr the value of the Property and Lender's rights
<br />in e�z Property.. U=&—es. ac:iains may include paying any sums secured.by a lien which has priority over this Secuhiy
<br />D crtxert ttt� a,ppamiccg in catim paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lendow'rmagv Wk:=,,ian under this paragngilr,* ; Lender doesnos have to doso.
<br />Azp aicmm,:gsh ursel by Lender under diis.paragFaph S shall become additional debt of Borrower secured by this
<br />-Segoarty Dwscromarm '-Untest lii =rawer and: Ezuadi; ri, rp: to other tc. m oTpkyrneni, these amounts shall bear;rterest from
<br />The flaam .of iF�b seman= Lt dire INare stria .iar,3 Shall be payam,9e, arith jr terest,. upon notice from Lender to Borrower
<br />regu>s -3n$ ;e3mmm.
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