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<br />�13oil 111147
<br />TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances.
<br />and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security
<br />Instrument. 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
<br />and convey the Property and that the Property is unencumbered, except, for encumbrances of record. Borrower warrants and
<br />will defend generally the title 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
<br />limited 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 the
<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 Leader, Borrower shall pay to
<br />Lender on the day monthly payments are eme under the Note, until the Note is paid in full, a sum ( "Funds ") for: (a) yearly
<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
<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 g, 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 ;n an amount not to exceed the maximum
<br />amount a lender for a federally related mortgage loan may require for Borrowers escrow accountt under the federal Real
<br />-state Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. § 2601 el seq. ( "REVA "), unless another
<br />law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amount not to
<br />exceed the lesser amount.. Lender may estimate the amount of Funds due on the basis of current data and reasonable
<br />estintates of expenditures of future Escrow Items or otherwise in accordance with applicable law.
<br />The Funds shall be held in an inst :tution 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 shrill apply the Funds to pay
<br />the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow
<br />account, or verifying the Escrow Items, unless Lender pays Borrower interest on they Funds and applicable law permits
<br />Lender to make such a charge. However, Lender may require Borrower to pay a otle -time charge for an independent real
<br />estate tax reporting service used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an
<br />agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or
<br />earnings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender
<br />shall give to Borrower, without 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 made. 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 to 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 Items 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 up the
<br />deficiency in no more than twelve monthly payments, alt Lender's sole discretion.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower tiny
<br />Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lat:nder, prior 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 />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 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 Evidencing
<br />the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security 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 Lenders 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
<br />to this Security Instrument. if Lender determines that any part of the Property is subject to a lien which may attain priority
<br />over this Security Instrument, Lender may give Borrower 'a notice identifying the lien. Borrower shall satisfy the lien or take
<br />one or more of the actions set forth above within 10 days of the giving of notice.
<br />5. I1a7ard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property inFored against loss by fire, hazards included witf,:in the term "extended coverage" and any other hazards, including
<br />floods or flooding, for which Lender requires insurance. This insurance shell be maintained in the amounts and for the
<br />Form 3028 9/90 (page 2 of 6 pages)
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