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<br />UNIFORM COVENANTS. Borrower and Lcnder covenant and agree as follows: 88- 10130:3
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrowcr shall promptly pay whcn due
<br />the principal of and interest on the debt evidenced by thc Note and any prepaymcnt and latc chargcs due under thc Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lcndcr on the day monthly payments arc due undcr the Note, until the Note is paid in full, a sum ("Funds") cqual to
<br />one-twelfth of: (a) yearly taxcs and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold paymcnts or ground rcnts on thc Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, ifany. These items arc called "cscrow items." Lender may estimatc the Funds due on the
<br />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 arc 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 Funcls, analyzing the account or verifying thc escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a chargc, Borrower and
<br />Lender may agrce in writing that interest shall be paid on the Funds. Unless an agreement is maclc or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on thc Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and dcbits to the Funds and the
<br />purpose for which each dcbit 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 cscrow items, shall exceed the amount required to pay the esaow items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or crcdited 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 Lendcr.
<br />Upon payment in full of all sums secured by this Security Instrument, Lendcr 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 at the 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 rcceived by Lcnder under
<br />paragraphs I and 2 shall be,applied: first, to late charges due under the Note; second, to prepayment charges duc 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 rcnts, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lendcr all notices of amounts
<br />to bc 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 Sccurity Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by thc lien in a manner acccptable to Lcnder; (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) sccures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender detcrmines 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 />ofthc giving of notice,
<br />5. Hazard Insurance. Borrower shall keep the improvcments I;)W existing or hercafter erected on the Property
<br />insured against loss by fire, hazards included within the tcrm "extended coverage" and any other hazards for which Lender
<br />requires insurance, This insurance shall be maintained in the amounts and for the periods that 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 insurancc policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall havc the right to hold thc policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid prcmiums and renewal notices, In the event of loss, Borrower shall give prompt notice to the insurancc
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unlcss Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or rep;;ir
<br />of the Propcrty dan~agcd. if thc restoration or repair is economically feasible and'Lender's security is not lessened. If the
<br />restoration or repair is not cconomically feasiblc or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to thc sums secured by this Sccurity Instrument, whether or not then due, with any excess paid to Borrower, If
<br />Borrower abandons the Property, or does not answcr within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance procecds. Lender may use the proceeds to repair or restore
<br />the Propcrty or to pay sums secured by this Security Instrument, whethcr or not then due. The 3D.day period will begin
<br />when the noticc is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postponc the due date ofthc 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 not destroy, damage or substantially
<br />change the Property, allow the Properly to deteriorate or commit waste. If this Security Instrument ,is, on a.leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property; the leas~hold and
<br />fee title shall not merge unless Lender agrees to ,he merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform thc
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to cnforce laws or
<br />regulations), then Lendcr may do and pay for whatever is necessary to protect the value of the Property 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 Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and cntcring on the Property to make repairs. Although
<br />Lender may takeaction undcr this paragraph 7, Lendcr does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional dcbt of Borrower secured by this
<br />Security Instrument. Unless Borrower ancl Lender agree to othcr terms ofpaymcnt. thcse amounts shall bear interesl from
<br />the date of disbursement at the Note ratc and shall be payable. with interest, upon notice from Lender III Borrower
<br />requesting payment. .
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