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TOGE'TI�R VJITH all the, improvements now or hereafter erected on the property, and all easements, appurtenances, and
<br /> fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument.
<br /> ' All of the foregoing is referred to in this Security Instrument as the"Property."
<br /> BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and
<br /> convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will �
<br /> defend generally the tifle to the Property against all claims and demands>subject to any encumbrances of record. �
<br /> THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited �
<br /> variations by jurisdiction to constitute a uniform security instrument covering real property.
<br /> IJNIFORM COVENANTS.Borrower and Lender covenant and agree as follows: �
<br /> 1.Payment of Principal and Interest;Prepayment and Late Charges. Borrower shall promptly pay when due the 0
<br /> 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 Insurance. Subject to applicable law or to a written waiver by Lender, Bonower shall pay to
<br /> .Lender on the day monthly payments are due under the Note,until the Note is paid in full,a sum ("Funds") for: (a) yearly ta�ces Q
<br /> and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold payments }"+
<br /> or ground rents on the Property,if any; (c) yearly hazard or property insurance premiums; (d)yearly flood insurance premiums,if
<br /> any; (e) yearly mortgage insurance premiums, if any; and (fj any sums payable by Bonower to Lender, in accordance with the
<br /> provisions of pazagraph 8, in lieu of the payment of mortgage insurance premiums. These items are called "Escrow Items."
<br /> Lender may,at any time,collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally related
<br /> mortgage loan may require for Bonower's escrow account under the federal Reat Estate Setdement Procedures Act of 1974 as
<br /> amended from time to time, 12 U.S.C. Section 2601 et seq. ("RESPA"),unless another law that applies to the Funds sets a lesser
<br /> amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount Lender may
<br /> estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or
<br /> otherwise in accordance with applicable law.
<br /> The Funds shall be held in an institution whose deposits are insured by a federal agency,instrumentality,or entity (including
<br /> Lender, if Lender is such an institurion) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow
<br /> Items. Lender may not chazge Bonower for holding and applying the Funds, annually analyzing the escrow account,or verifying
<br /> the Escrow Items, unless Lender pays Bonower interest on the Funds and applicable law permits Lender to make such a chazge.
<br /> However, Lender may require Bonower to pay a one-time charge for an independent real estate tax reporting service used by
<br /> Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or applicable law
<br /> requires interest to be paid, Lender shall not be required to pay Bonower any interest or earnings on the Funds. Borrower and
<br /> Lender may agree in writing,however,that interest shall be paid on the Funds.Lender shall give to Bonower,without charge,an
<br /> annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was
<br /> made.The Funds aze pledged as additional security for all sums secured by this Security Instrumen�
<br /> If the Funds held by Lender exceed the amounts permitted to be held by applicable law,Lender shall account to Borrower for
<br /> the excess Funds in accordance with the requirements of applicable law.If the amount of the Funds held by Lender at any time is
<br /> not sufficient to pay the Escrow Items when due,Lender may so notify Borrower in writing,and,in such case Bonower shall pay
<br /> to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve
<br /> monthly payments,at Lender's sole discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall prompdy refund to Bonower any Funds
<br /> held by Lender. If, under pazagraph 21, Lender shall acquire or sell the Properly, Lender, prior to the acquisition or sale of the
<br /> Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this
<br /> Security Instrument.
<br /> 3.Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs
<br /> 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2;
<br /> third,to interest due;fourth,to principal due;and last,to any late chazges due under the Note.
<br /> 4.Charges;Liens. Borrower shall pay all taaces, assessments, charges, fines and impositions attributable to the Property
<br /> which may attain priority over this Security Instrument,and leasehold payments or ground rents,if any. Bonower shall pay these
<br /> obligations in the manner provided in paragraph 2,or if not paid in that manner,Bonower shall pay them on time direcdy to the
<br /> person owed payment. Borrower shall prompfly furnish to Lender all notices of amounts to be paid under this paragraph. If
<br /> Bonower makes these payments direcdy,Borrower shall prompfly furnish to Lender receipts evidencing the payments.
<br /> Borrower shall prompdy dischazge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in
<br /> writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien
<br /> by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the
<br /> enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to
<br /> this Security Instrument. If Lender deterrnines that any part of the Property is subject to a lien which may attain priority over this
<br /> Security Instrument,Lender may give Borrower a notice identifying the lien. Bonower shall satisfy the lien or take one or more
<br /> of the actions set forth above within 10 days of the giving of notice.
<br /> Form 3028 9/90
<br /> � -6H(NE)�eaos�.o� Page 2 of 6 Initials:�J�
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<br /> MICEK 43621887AA
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