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TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and
<br /> flxtures now or hereafter a part of the prope►ty. All replau�ments and additions shall also be covered by this Security Instrument.
<br /> All of the foregoing is referred to in this Securiiy lastrument as the "Property:"
<br /> BORROWER COVENANTS that Borrower is lawfuily seized of:the `estate hereby conveyed and has the right to grant and
<br /> convey the Property and that the Propetty is unencumbered, except tor encumbrances of record. Borcower warrants and will _ .
<br /> detend generally the title to the Property against all claims and demands, subject to any ercumbrances ot record. �
<br /> THIS SECURITY INSTRUMENT combtnes uniform covenants for national use and non-uniform covenants with limited
<br /> variations by jurisdiction to constitute a uniform securiry instrument covering real property.
<br /> UNIFORM COVENANTS. Bonower and Lender covenant and agree as follows:
<br /> 1. Payment of Principal and Interest; Pre;payment and Late Charges. Borrower shall promptly pay when
<br /> due the p�tncipal 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 appflcable law or to a written waiver by l.ender, BoROwer shall pey
<br /> to Lender on the day monthly payments are due under the Note, untii the Note is paid in tull, a sum ("Funds") for: (a) yeariy
<br /> taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold
<br /> , payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance
<br /> premiums, it any; (e) yearly mortgage insurance premiums, if any; and (� any sums payable by Borrower to lender in accordance
<br /> with the provisions oi paragraph e, In fleu ot the payment of morlgage insurance premiums. These items are called "Escrow
<br /> Items." Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a
<br /> federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures
<br /> � Act of 1974 as amended from time to time, 12 U.S.C. � 2601 et seq. ("RESPA"), unless another law that applies to the Funds
<br /> � sets a lesser amount. It so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount.
<br /> � Lender may estimate the amount oi Funds due on the basis of current data and reasonable estimates of expenditures oi future
<br /> � 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 (including
<br /> � Lender, if Lender is such an institut(on) or,�n any Fe �r�l, Home Loan Bank. Lender shall apply the Funds to pay the Escrow
<br /> '""� Items. Lender may not charge BorroWer Tol•hoidlhg a�d 'applying the Funds, annuaily analyzing the escrow account, or verifying
<br /> the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a
<br /> C� charge. However, Lender may requ(re Borrower to pay a one-time charge for an independent reai estate tax reporting service
<br /> Q� used by Lender in connection with this loan, uniess applicable law provides otherwise. Unless an agreement is made or
<br /> applicable law requires (nterest to be paid, Lender shall not be required to pay Borrower any interest or eamings on the Funds.
<br /> Borrower and Lender may agree in writing, however, that interest shail be paid on the Funds. Lender shall give to Borrower,
<br /> without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each
<br /> debit to the Funds was made. The Funds are pledged as additional securiy for all sums secured by the Securfty Instrument.
<br /> If the Funds held by Lender exceed the emounts permitted to be held by applicable law, Lender shall account to Borrower
<br /> for the excess Funds in accordance with the requirements of appflcable law. If the amount of the Funds held by Lender at any
<br /> time is not sufNctent to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower
<br /> shall pay to Lender the amount necessary to make up the deBciency. Borrower shall make up the deficiency tn no more than
<br /> tweNe 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 Bonower any Funds
<br /> held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, 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 /> Secu►iry instrument.
<br /> 3. Application Of Payments. Unless appflcable law provides otherwise, all payments received by Lender under
<br /> paragraphs 1 and 2 shall be appiied: first, to any prepayment charges due under the Note; second, to amounts payable under
<br /> paragraph 2; third, to interest due; fourth, to p�ncipal due; and last,to any late charges due under the Note.
<br /> 4. Charges; Liens. BoROwer shall pay all taxes, assessments, charges, fines and impositions ettributable to the
<br /> Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall
<br /> pay these obligations in the manner provided in paragraph 2, or ii not paid in that manner, Borrower shall pay them on time
<br /> directly to the person owed payment. Borrower shall promptly fumish to Lender all notices of amounts to be paid under this
<br /> paragraph. If Borrower makes these payments directly, Borrower shall promptly fumish to Lender receipts evidencing the
<br /> payments.
<br /> Borrower shali promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in
<br /> writing to the payment oi the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the
<br /> Hen by, or defends against enforcement of the Oen 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 satisiactory to Lender subordinating the Iten to
<br /> this Security Instrument. if Lender determines 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. Borrower shall satisfy the lien or take one or more oi
<br /> the actions set forth above withfn 10 days ot the giving of notice.
<br /> 5. Hazard or Property InsuranCe. Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Property ins�red against loss by fire, hazards included within the term "extended coverage" and any other hazards, including
<br /> floods or flooding, for whfch Lender requires insurance. This insurance shall be maintained in the amounts and tor the periods
<br /> that Lender requires. The insurance carcier providing the insurance shall be chosen by Borrower subJect to Lender's approval
<br /> wh(ch shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's
<br /> optfon, obtafn coverage to protect Lender's rights in the Propetty in accordance with paragraph 7.
<br /> All insurance poltcies and renewals shall be acceptable to Lender and shali include a standard mortgage clause. Lender
<br /> shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of
<br /> pa(d premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender.
<br /> Lender may make proof ot loss if not made promptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in wriNng, insurance proceeds shall be applied to restoration or repair oi the
<br /> Property dameged, ff the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or
<br /> repsir is not economically feasible or Lender's security would be lessened, the insurance proceeds shatl be aFplied to the sums
<br /> secured by thts $ecurity Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the
<br /> Property, or does not answer wfthin 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then
<br /> Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums
<br /> secured by this Security Instrument, whether or not then due. The 30-day period wili begin 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 reterred to (n paragraphs 1 and 2 or change the amount of the payments. Ii
<br /> under paragraph 21 the Property is acquired by Lende�, Borrower's right to any insurance policies and proceeds resulting irom
<br /> damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums by this Security Instrument
<br /> immediately prior to the acquisition.
<br /> 6. Occupancy, Preservafion, Maintenance and Protection of the Property; Borrower's Loan
<br /> AppllCation; LeasehOlds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within
<br /> sbcty days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal
<br /> residence for at least one year after the date of occupancy, uniess Lender otherwfse agrees in writing, whtch consent shall not
<br /> be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not
<br /> destroy, damage or Impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in
<br /> defauft if any forietture action or proceeding, whether clvil or criminal, is begun that in Lender's good faith Judgment could result
<br /> in foNeiture of the Property or otherwise materially fmpair the lien created by this Securiry Instrument or Lender's security interest.
<br /> F1316.LMG (12/93) Page 2 of 5
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