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<br />, 88.....~, 100587
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<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 Ilnd al'Y prepayment and late charges due under the Note,
<br />2. Funds for Taxes and Insurance. Subject 10 applicable law or to a wrillen waiver by lender, Borrower shall pay to lender
<br />on the day monthly payments are due under the Note, unlll the Note Is paid In full, a sum ("Funds") equal to one-twelfth of: (a) yeariy
<br />taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents on the
<br />Property, II and; (c) yearly hazard Insurance premiums; and (d) yearly mortgage Insurance premiums, 11 any. The Items are called "escrow
<br />Items," lender may estimate the Funds due on the basis of current data and reasonable estimates of future escrow Items,
<br />The Funds shall be held In an Institution the deposits or accounts of which are Insured or quaranteed by a federal or state agency
<br />(Including lender II lender Is such an Institution), lender shall apply the Funds to pay the escrow items. lender may not charge for hold.
<br />Ing and applying the Funds, analyzing the account or verifying the escrow Items, unless lender pays Borrower Interest on the Funds and
<br />applicable law permits lsnder to make such a charge:" Borrower and lender may agree In writing that Interest shall be paid on the Funds,
<br />Unless an 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, lender.:shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to
<br />the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums
<br />secured by this Security Instrument.
<br />If the amount of the Funds held by lender, together with the future monthly paymenta of Funds payable prior to the due dates of the
<br />escrow Items, shall exceed the amount required to pay the escrow items when due, the excess shall be,. at Borrower's option, either
<br />promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount of the Funds held by lender is not
<br />sufficient to pay the escrow Items when due, Borrower shall pay to Lender any amount necessary to make up the deficiency In one or
<br />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 any Funds held by
<br />Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than immediately prior to the sale
<br />of the Property or Its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by
<br />this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1
<br />and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the Note; third, to amounts
<br />payable under paragraph 2; fourth, to Interest due; and last, to principal due,
<br />4. Charges; Uens. Borrower shall pay all taxes, assessments, charges, fines and Impositions attributable to the Property which
<br />may attaln priority over this Security Instrument, and leasehold payments or ground rents, if any, Borrower shall pay these obligations in
<br />the manner provided in paragraph 2, or If not paid In that manner, Borrower shall pay them on time directly to the person owed payment.
<br />Borrower shaD promptly furnish to the lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments
<br />directly, Borrower shaN promptly furnish to Lender receipts evidencing the payments.
<br />Borrower shaH promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees In writing to the
<br />payment of the obligation secured by the lien In a manner acceptable to lander; (b) contests in good faith the lien by, or defends against
<br />enforcement of the lien In, legal proceedings which in the lender's opinion operate to prevent the enforcement of the lien or forfeiture of
<br />any part of the Property; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security
<br />Inswment. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument,
<br />Lender may give Borrower a notice identifying the lien. Borrower shaH satisfy the lien or take one or more of the actions set forth above
<br />within 10 days of the giving of notice.
<br />5. Huard Insurance. Borrower shall keep the Improvements now exiflting or hereafter erected on the Property Insured against
<br />loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires Insurance, This
<br />Insurance sha.1l be maintained In the amounts and for the periods that Lender requires, The insurance carrier providing the Insurance shall
<br />be choser; by Borrower subject to lender's approval which shall not be unreasonably withheld,
<br />AN insurance poHcles and renewals shall be acceptable to the lender and shall Include a standard mortgage clause. lender shall have
<br />the right to hold the poUcles and renewals, If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and
<br />renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and lender, lender may make proof of
<br />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 the Property
<br />damaged, If the restoration or repair Is economically feasible and lender's security is not lessened, If the restoration or repair is not econ.
<br />omically feasible or Lender's security would be lessened, the insurance proceeds shall be 8pplied to the sums secured by this Security
<br />InstTUment, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30
<br />days a notice from Lender that the Insurance camer has offered to settle Ii claim, then Lender may collect the insurance proceeds. Lender
<br />may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due, The
<br />3Q.day period will 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 postpone the due
<br />date of the monthly payments referred to In paragraph 1 and 2 or change the amount of the payments, If under paragraph 19 the Property
<br />Is acquired by Lender, Borrower's right to any Insurance policies and proceeds resulting from damage to the Property prior to the acquls.
<br />Itlon sha' pass to Lender to the extent of the sums by this Security Instrument immediately prior to the acquisition.
<br />6. Pre..rv.lon and Maintenance of Property; leaseholds. Borrower shall not destroy, damage or substantially change
<br />the Property. dew the Property to deteriorate or commit waste, If this Security InstTUment Is on a leasehold, Borrower shall comply with
<br />the provisions of the IelIse, and If Borrower acquires fee title to the Property, the leesehold and fee tme shall not merge unless the Lender
<br />agrees to the merger In writing.
<br />7. Protection of Lender'. Rights In the Property; Mortgage Insurance. If Borrower fails to perfonn the covenants
<br />II'ld agreements contained In this Security InstTUment, or there is a legal proceeding that may significantly affect the lender's right in the
<br />Property (such as a proceeding In bankruptcy, probate, for condemnation or to enforce laws or regulations), then Lender may do and pay
<br />for what..,. Is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may Include paying any
<br />sums secured by a Ilen which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering
<br />on 1tte Prop4II1y to make repairs. Although Lender may take aellon under paragraph 7, Looder does not have to do so,
<br />1vrI amounts disbursed by Lender under paragraph 7 sha' become additional debt of Borrower secured by this Security Instrument.
<br />Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interesl from date of disbursement at the Note
<br />rate and shl' be payable, upon notice from lender to Borrower requesting payment,
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<br />UlOn.l.cn (11/1171
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<br />191601
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<br />Page 2 01 4
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<br />* ^ charge assess~d by Lender in
<br />pay the cost of an Independent
<br />procedlng sentence.
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<br />P( 8te1) U( 8/31/81)
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<br />connection with Borrower's entering into this Security Instrument to
<br />tax reporting service shall not be a charge for purposes of the
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