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<br />87..... 107085
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<br />UNIFORM COVENA"''TS. Botrower and Lender covenant and agree as follows:
<br />1. PaJIDeIlt oJPriJldpal ud IntH'eSt; PreptlJ_at aad Late Cbaraes. Borrower shall promptly pay when due the
<br />principal of andinteresl on'the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />1. Fa. for Taxes' aU I_ruee. Subject to applicable law or to a written' waiver by Lender,' Borrower shall pay to
<br />Lender on the day monthly payments are due under the Nole, until the Note is paid in full, a sum ("Funds") equal to orie-
<br />twelfth of: (a) yearly taxes and assessments which may attain priority over Ihis Security Instrument; (b) yearly leasehold
<br />payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance
<br />premiums, if any. These ilems are called "escrow item;;." Lender may estimate the Funds due on Ihe basis of current data
<br />and reasonable estimales of future escrow items.
<br />The Funds shall be held in an inslitution the deposils or accounls of which are insured or guaranteed by a federal or
<br />state Bleney (including Lender if Lender is such an inslitulion), Lender shall apply the Funds to pay the escrow items. Lender
<br />may not charge for holding and applying the Funds, analyzing the account or verifying Ihe escrow items, unless Lender pays
<br />Borrower interest on the Funds and applicable law permits Lender 10 make such a charge, Borrower and Lender may agree in
<br />writing that inlerest shall be paid on the Funds. Unless an agreement is made or applicable law requires interesl to be paid.
<br />Lender shall not be required to pay Borrower any interest or earnings on Ihe Funds. Lender shall give to Borrower, wilhoul
<br />chatle, an annual accounting of the Funds sho\\ing credits and debits to the Funds and Ihe purpose for which each debit to
<br />Ihe Funds was made. The Funds are pledged as additional security for the sums secured by this Security lnslrument.
<br />If Ihe amount of the Funds held by Lender, together with the fulure monthly payments of Funds payable prior 10 the
<br />due dates of the escrow items, shall exceed the amount required to pay the escrow ilems when due, the excess shall be, at
<br />Borrower's option, either promplly repaid 10 Borrower or crediled on monlhly paymenls of Funds. If Ihe amounl of Ihe
<br />Funds held by Lender is not sufficienl to pay the escrow ilems when due, Borrower shall pay to Lender any amount
<br />necessary 10 make up the deficiency in one or more paymenls as required by Lender.
<br />Upon paymenl in full of all sums secured by this SecurilY Instrument, Lender shall prompl1y refund to Borrower any
<br />Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than
<br />immediately prior 10 Ihe sale of Ihe Properly or its acquisilion by Lender, any Funds held by Lender at Ihe time of
<br />application as a credil against Ihe sums secured by Ihis Security Instrument.
<br />3. AppUritlon or Payments, Unless applicable law prO\'ides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, 10 late charges due under Ihe Note; second, 10 prepayment charges due under Ihe
<br />Note; third, to amounls payable under paragraph 2; fourth, to inlerest due; and last, to principal due.
<br />.. Daraes; IMns. Borrower shall pay all taxes, assessments, charges, fines and imposilions attributable 10 Ihe
<br />Property which may attain priorilY over Ihis Security Instrument, and leasehold paymenls or ground renls, if any. Borrower
<br />shall pay Ihese obligations in the manner provided in paragraph 2, or if nol paid in thaI manner, Borrower shall pay them on
<br />time directly to the person owed payment. Borrower shall prompll)' furnish to Lender all nolices of amounts 10 be paid under
<br />this parqraph. If Borrower makes these paymenls direclly, Borrower shall promptly furnish 10 Lender receipls evidencing the
<br />paymenls.
<br />Borrower shall promptly discharge any lien which has priority over Ihis Securily Instrumenl unless Borrower: (a) agrees
<br />in writing 10 the paymenl of the obligalion secured by the lien in a manner acceplable to Lender; (b) contests in good faith
<br />the lien by, or defends against enforcemenl of the lien in, legal proceedings which in Ihe Lender's opinion operale to prevenl
<br />the enforcement of the lien of forfeilure of any parI of the Property; or (c) secures from the holder of Ihe lien an agreement
<br />satisfactory to Lender subordinating the lien to this Security Instrument. If Lender delermines t~'.ll any part of the Property is
<br />subjecl toa lien which may attain priority over this Securily Instrument, Lender may give Borrower a notice identifying the
<br />lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of Iheghing of notice.
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<br />5. Hazard l_ralKe. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />apinst loss by fire, hazards included wilhin Ihe term "extended coverage" and any other hazards for which Lender requires
<br />msurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier
<br />providing the insurance shall be chosen by Borrower subject to Lender's approval which shall nol be unr~<Qnably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender
<br />shal1 have the right to hold the, policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts
<br />of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and
<br />Lender. Lender may make proof of loss if not made promptly by Borrower. '
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damll8ed, if the restoration or repair is economically feasible and Lender's securily is not lessened. If Ihe
<br />restoration or repair is nol economically feasible or Lender's securily would be lessened, Ihe insurance proceeds shall be
<br />applied to Ihe sum secured by this Security Inslrumenl, whelher or nol then due, wilh any excess paid to Borrower. If
<br />Borro...er abandons the Property. or does nOl answer within 30 days a nOlice from Lender Ihat Ihe insurance carrier has
<br />offered to settle a claim, Ihen Lender may collecl the insurance proceeds. Lender may use the proceeds to repair or reslore
<br />the Property or to pay sums secured by Ihis Securil)' Instrument, whether or not Ihen due. The 31k1ayperiod will begin when
<br />the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds 10 principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change Ihe amounl of Ihe paymenls. If
<br />under parqrajJh 19 Ihe Properly is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damll8e 10 the Property prior to the acquisition shall pass to Lender ::> the extent of Ihe sums secured by this Securily
<br />lnstrumenl immediately prior to the acquisition.
<br />6. Presen-atlon and Malntellance or Propert)'; uurholds. Borrower shall not destroy, damage or subslantially change
<br />the Property, allow the Properly 10 deteriorale or commil waste. If this Securily ,nstrumenl is on a leasehold. Borrower shall
<br />comply with the provisions of the lease. and if Borrower acquires fee lille to the Property, the leasehold and fee title shall nOl
<br />merle unless Lender qfeeS 10 the merger in \\Titing,
<br />7. Protedloa or LeIlder', Rlallllla tlte property; Morta. Insuraa<<. If Borrower fails to perform the co\'e'lants and
<br />....eemenu contained in this Security Instrument. or there is a legal proceeding thaI may significantly affect Lender's rights in
<br />the Property (such as a proceeding in bankruptcy, probate, ror condemnation or to enforce laws or regulations), then Lender
<br />may do and pay for whatever is necessary to protect the \'alue of the Property and Lender's rights in the Property. Lender's
<br />actions may include paying any sums secured by a lien which has priorilY o\'er this SecurilY Instrument, appearing in court.
<br />payin, reasonable allOrne)"s fees and entering on the Property to make repairs. Although Lender may take action under this
<br />paraaraph '7 l.ender does not have to do so. An)' amounls disbursed by Lender under this paragraph '7 shall become
<br />additional debl of Borrower s('Cured by Ihis Securily Instrument. Unless Borrower and l.ender agree 10 (llher lerms of
<br />peymml, Ihese amounts shall bear inlerest from the date of disbursement al the Nole rate and shall be payable, with inlerrst,
<br />upon notice from l.ende, to Borrov.'er ,eqursling payment.
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