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<br />UNIFORM COVENANTS, Borrower and Lender covenant and agree as follows: 87- 1073 Q 5
<br />I. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promp~ pay w't;en 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 pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
<br />one.twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any, These items are called "escrow items," Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates offuture escrow items,
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an institution), Lender shall apply the Funds to pay the escrow items,
<br />Lender may not charge for holding and applying the Funds. analyzing the account or verifying the escrow items. unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge, Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds, Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings 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 the sums secured by
<br />this Security Instrument. '
<br />If the amount of the Funds held by Lender. together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be.
<br />at Borrower's option. either promptly repaid to Borrower or creditcd to Borrower on monthly payments of Funds, If the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due. Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one or more payments as required by Lender.
<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 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender atlhe time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3, Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first. to late charges due under the Note; second. to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth. to interest due; and last. to principal due,
<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.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2. or ifnot paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph, If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge 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 forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien, Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire. hazards included within the term "extended coverage" and any other hazards fot which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods Ihat Lender requires, The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld,
<br />All insurance policies and renewals shall be acceptable 10 Lender and shall include a standard mortgage clause.
<br />Lender shall have the right 10 hold the policies and renewals_ If Lender requires, Borrower shall promplly give to Lender
<br />all receipts of paid premiums and renewal notices, In the event of loss. Borrower shall give prompt notice 10 the insurance
<br />carrier and Lender. Lender may make proof ofloss ifnot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoralion or rep..ir
<br />of the Property damaged. if the restoration or repair is economically feasible and Lender's security is not lessened, If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened. the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument. whelher or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property. or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim. then Lender may collect the insurance proceeds, Lender may use the proceeds to repair or reSlOre
<br />the Property or to pay sums secured by this Security Instrument. whether or not then due, The 30,day period will begin
<br />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 dale of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition,
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall nOI destroy, damage or substantially
<br />change the Property. allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold.
<br />Borrower shall comply with the prm isions of the lease. and if Borrower acquires fee tllle to the Property. Ihe leasehold and
<br />fee title shall not merge unless Lender agrees to the merger 111 wntlllg.
<br />7. Protection of l.ender's Rights in the Property; ~tortgage Insurance. If Borrower fails to perform Ihe
<br />covenants and agreements contained in Ihis Security Instrumenl, or there is a legal proceeding Ihat may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probale. for condemnatIOn or to enforce laws or
<br />regulations). then Lender may do and pay for whatever is necessary to protect the value of the Propeny and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Securlly
<br />Instrument, appearing in coun. paying reasonable anorneys' fees and enlenng on Ihe Property to make repairs, Allhough
<br />Lender may take action under this paragraph 7. Lender does not have to do so,
<br />Any amounts disbursed by Lender under this paragraph 7 shall become addllional debt of Borrower secured by thIS
<br />Secunty Instrument. Unless Borrower and Lender agree to other terms ofpaymcnt, these amnunls shall bear IIlterest from
<br />the date of dIsbursement at the Note rate and shall be payable. with interest, upon notice f[(1m Lender", Bnrn1\wr
<br />requesl1ng payment,
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