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<br />Form 3028 9/90 (f'ag' J. of fJ f'ogf.!)
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<br />93- 1.10891
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<br />TOGETHER WITH all I~:7: improvements now or hereafter erected on the property. and all casements. appurtenances.
<br />and fixtures now or hereafter a part of the prorerty. All replacemer.ts and additions shall also be covered by this Security
<br />Instrument. All of the f('\fegoing is referred to in this Security Instrument as the "Property."
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<br />BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant
<br />and c"nvcy the Property and that the Property is unencumbered. except for encumbrances of record. Borrower warrants and
<br />will defend generally the title to the Propel1Y against all ciaims and demands, subject to any encumbrances of record.
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<br />THIS SECURITY INSTRUM:::NT combines uniform covenants for national use and non-uniform covenants with
<br />limited variations by jurisdiction to constitute a uniform security instrument covering real property.
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Pre~ayment and Late Charges. Borrower shalll1romptly pay when due the
<br />principal of and interest on the debt evidenced by the Note and any prepay:nent and late charges due undtr the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lendl Borrower shall pay to
<br />Lendcr on the day monthly payments arc due under the Nole, until the Note is paid in full. "sum Funds") for: (a) YC~lrly
<br />taxes and assessments which may nllain p~iority over this Security Instrument as a lien on the Property; ~b) yearly leasehold
<br />p...jments or ground rents on the Property, if ar.:; (c) yearly hazard or property hsurance premiums; (d) yearly flood
<br />insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (f) any sums payable by Borrower to
<br />Lender, in accordance with the provisions of paragraph 8, in lieu ('f 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 maj 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 another
<br />law that applies to the Funds sets a lesser amount. If so, Lender rr:ay, at any lime, collect and hold Funds in an amount not to
<br />exceed the lesser amount Lender may estimate the amount of Funds duc on the basis of current data and reasonftble
<br />estimates of exper.ditures 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 pny
<br />the Escrow Items, Lender may not charge Borrower for holding and applying the Funds, annually analyzing the e!'iCTOW
<br />accollnt, or Vf"':~J;"~ the Escrow Items. unl.;:ss Lender pays Borrower interest on the Funds and uppliclIblc law permit..;
<br />Lender to Ir...."e such a charge. However, Lender may require Borrower to pay II one-time charge for an independent real
<br />eslate tdX reporting service used by Lender in connection with this loan. unless applicable law provides otherwise. Unless an
<br />agreement is made or applicnble I(lw requires interest to be pnid, Lender shall not be required to pay Borrower any intere!.1 or
<br />earnings 011 the Funds, Borrower and Lender may agree in wri\ing, however, t..at interest shall be paid on the Funds. Lender
<br />shall give to Borrower. wi!hout 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 madc. The Funds are pledged as additional security for all sums secured by
<br />this Security Instrument. <
<br />If the Funds held by Lender exceed the amounts permitted ;0 be held by applicable law, Lender shall account to
<br />Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by
<br />Lender at any time is not sufficient to pay the Escrow Hems when due, Lender may so notify Borrower in writing, and. in
<br />such case Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make lip the
<br />deficiency in 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 any
<br />Funds held by Lender. If, under paragraph 21, lender shall acquire or scn the Property, Lender, pril)r to the acquisition or
<br />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 />parngraphs I nnd 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; foul1h. to principal due; and last, to any late charges due undcr the Note.
<br />4. Charges: Liens. Borrower shall pay all tuxes, assessments, charges, fines awl impositions attributable to the
<br />Property which may altain priority over this Security InSlnlmem, 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 on
<br />time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under
<br />this paragraph, If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidcncing
<br />the paymcnts.
<br />Brrower shall promp:J :lischarge any lien which has priority over this Sccurity Instrument unless Borrower: (a) agrees
<br />in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the
<br />lien by. or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate 10 prevent the
<br />enforcement of the lien; o~ (c) secures from the holder of the li-:n an agreement satisfactory to Lender subordinating the lien
<br />to this Security Instrument. If Lender deternlines that any part of the Property is subject to a lien which may lltlain priority
<br />ever this Security Instrument. Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take
<br />one or morc uf the actions set forth above within J 0 days of the giving of notice,
<br />5. ~~;Il~rd or Property Insurance, Borrower shall keep the improvements now existing or hereafter erected on the
<br />ProJX~rty insured against loss by fire, hazards included within the ternl "extended coverage" and any other hanrds, including
<br />noods or flooding. for which Lender requires Insurance. This insurance shall be maintained in the amounts an1 for the
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