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<br />88- 101394
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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 shail promptly pay when due
<br />the principal of and interest on the deht evidenced by the Note and any prepayment and late charges due under t he 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) y<::ady talles 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 of future escrow items.
<br />The Funds shall be helci 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 ameunt 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 ell reed the amount required 10 pay the escrow items when duc, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay the cscrow items when due. Harrower shall pay 10 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 10 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 pnor to the sale of the Proprrty 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 Instrumenl.
<br />3. Application of Payments. Unless applicable law provides olherwlse. all paymcnts 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, 10 interesl due; and last. 10 pnnclpal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessment,,". charges. fines and impositions sltributable 10 the
<br />Property which may attain priority over this Security Instrument. and leasehold payments or ground rents. if any.
<br />Borrower shall pay these obtigatior.s in the manner provided In paragraph 2, or lf n01 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 />narrower shall promptly discharge any lien which ha!. priOrity over thi!. Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of!he obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or dt.;ends against enforcement of the lien in, tegal 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 Iicn. Borrower shall satisfy the her. or lake one or more of the actions set forth above within 10 days
<br />of the giving of not ice.
<br />5. 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 "cxtended 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 insurance policies and renewals shall be acceptable 10 lender and shall include a standard mortgage clause.
<br />Lcnder shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notIce to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree 111 writmg, insurance proceeds shall be applied to restoration or rep~ir
<br />of the Property damaged, if the restoration or repair is economically feasible and lender's security is not Iessencd. 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, whether or not then due, with any excess paid 10 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 restore
<br />the Property or to pay sums secured by this Security Instrument. whcther or not then due. The 3D-day period will begin
<br />when the notice is given.
<br />Unless Ll;;ilder and Borrower otherwise agree III writing, any application of proceeds to principal shall not elltend or
<br />postpone the due date oflhe 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 resulling
<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 10 the acquisition.
<br />6. Preservation and ;\laintenance of Propert)'; 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 />Borrnwer shall comply With the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not mcrge unless Lender agrees to the merger !II writing.
<br />7. Prot('ction of under's Rights in the Pruperty; Mortgage Insurance. If Borrower falls 10 perform the
<br />covenants and agreements contained !II this Security Inslrument, 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 cundemnation or to enforce laws or
<br />regulations), then Lender 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 pnonty over this Secunty
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property 10 make repairs. Although
<br />Lender may take aCllon under ttus paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed hy Lender up-der this paragraph 7 shall become additIOnal debt of Borrower secured by this
<br />Security Instrument. Unlcss Borrowcr and Lender agree to other terms of paymcnt. these amoulIts shall bear mleresl from
<br />the date of disburseme11l 011 lhe Note rate and shall be payable. with IIItercSl, upon IwtlCe from Lender ill Borrower
<br />reque!>lmg paymenl.
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