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gg_ 1G+8331
<br /> TrIIS 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 /> UNIFORM 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
<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 Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall
<br /> pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") for:
<br /> (a)yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property;(b)yearly
<br /> leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly
<br /> flood insurance premiums, if any; (e)yearly mortgage insurance premiums, if any; and (� any sums payable by Borrower
<br /> to Lender,in accordance with the provisions of paragraph 8,in lieu of the payment of mortgage insurance premiums.These
<br /> items are called"Escrow Items."Lender may,at any time,collect and hold Funds in an amount not to exceed the maximum
<br /> amount a lender for a federally related mortgage loan may require for Borrower's escrow account under the federal Real
<br /> Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. �2601 et seq. ("RESPA"),unless
<br /> another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an
<br /> amount not to exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of current data and
<br /> reasonable estimates of expenditures of future Escrow Items or 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
<br /> (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to
<br /> pay the Escrow Items.Lender may not chazge Borrower for holding and applying the Funds,annually analyzing the escrow
<br /> account,or verifying the Escrow Items,unless Lender pays Borrower interest on the Funds and applicable law permits Lender
<br /> to make such a charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate
<br /> tax reporting service used by Lender in connection with this loan,unless applicable law provides otherwise.Unless an agreement
<br /> is made or applicable law requires interest to be paid,Lender shall not be required to pay Bonower any interest or earnings
<br /> on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall
<br /> give to Borrower,without charge,an annual accounting of the Funds,showing credits and debits to the Funds and the purpose
<br /> for which each debit to the Funds was made.The Funds are pledged as additional security for all sums secured by this Security
<br /> Instrument.
<br /> If the Funds held by Lender exceed the amounts permitted to be held by applicable law,Lender shall account to Borrower
<br /> for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at
<br /> any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case
<br /> Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in
<br /> no more than twelve monthly payments,at Lender's sole discretion.
<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 21,Lender shall acquire or sell the Property,Lender,prior to the acquisition
<br /> or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums
<br /> 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 any prepayment charges due under the Note; second,to amounts payable under
<br /> paragraph 2;third,to interest due;fourth,to principal due;and last,to any late charges due under the Note.
<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. Borrower
<br /> shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them
<br /> on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid
<br /> under this pazagraph.If Borrower makes these payments directly,Borrower shall promptly furnish to Lender receipts evidencing
<br /> the payments.
<br /> Borrower shall promptly dischazge 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 (c) secures from the holder of the lien an agreement satisfactory to Lender subor-
<br /> dinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which
<br /> may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall
<br /> satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on
<br /> the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards,
<br /> including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and
<br /> ST&L#NE6-2.NEW Form 3028 9/90 (page 2 of 7 pages)
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