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<br />88- 101487
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I, Paiment 01 Principal and Interest; Pupayment alid bte Clilltgn. Borrower shall promptly pay when due the
<br />principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds lor Tun and Insurance. Subject to applicable law or to a written waiver by lender, Borrower shall pay to
<br />Lender on the day monthly payments arll: due under the Note, until the Note is paid in full, a sum ("Funds") equal to one-
<br />twelfth of: (a) yearly taxes and assessments which may anain priority Over this Sei:urity Instrument; (b) yearly leasehold
<br />payments or ground rents on the Property, if any; (cl yearly hazard insurance premiums; and (d) yearly mortgage insurance
<br />premiums, if any. These items are called "escrow items," lender may estimate the Funds due on the basis of current data
<br />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 guarantee1i 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, Lender
<br />may not charge for holding and applying the Funds, analyzing the account or verif>;ng the escrow items, unless Lender pays
<br />Borrower interest on the Funds and applicable law permits Lender to make su-:h a charge. Borrower and Lender may agrcc in
<br />writing that interest shall be paid on the Funds, Unless an agreement is made or applicable law requires interest to be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Bor,rower, 'Vithout
<br />charge, an annual accounting of the Funds showing credits and debits to the Fund" and the purpose for which each debit to
<br />the Funds was made, The Funds are pledged as additional s('curity for the sums secured by this Security Instrument.
<br />If the amount of the Funds held by lender. together with the future monthly payments of Funds payable prior to the
<br />due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be, at
<br />Borrower's option, either promptly repaid to Borrower or credited on monthly payments of Funds. If the amount of the
<br />Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to lender any amount
<br />necessary to make up the deficiency in one or more payments as required bv lender.
<br />Upon payment in full of all sums secured by this Security Instrument, lender shall promptly 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 to the sale of the Property or its acquisition by lender, any Funds held by lende. at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Applkatlon or Paymtnls. Unless applicable law provides OIherwise, all pa)ments received by Lender under
<br />paragraphs I and 2 shan be applied: first, to late charges due under the Note; second, to prepa)ment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last. to principal due.
<br />... Cllaraes; Liens. Borrower shall pay all taxes, assessments. charges, fines and impositions altributable to the
<br />Property which may altain priority Over this Secarity Instrument, and leasehold payments or ground rents, if any. Borrower
<br />shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on
<br />time directly to the person owed payment. Borrower shall promptly furnish to lender all notices of amounts to be paid under
<br />this paragraph, If Borrower makes these payments di.ectly, Borrower shall promptly furnish to Lender receipts evidencilig the
<br />payments,
<br />Borrower shall promptly discharge any lien which has priority over this Sei:urity Instrument unless BorrO\\'er: (a) agrees
<br />in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith
<br />the lien by, or defends against enforcement of the lien in, legal procee1iings which in the Lender's opinion operate to prevent
<br />the enforcement of the iien of forfeiture of any part of the Property; or (c) secures from the holder of the lien an agrec:ment
<br />satisfactory to lender subordinating the lien 10 Ihis Security IIlstrument. If Lender determines that any part of the Property is
<br />subject to a lien which may altain priority Over this Security 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 the giving of notice.
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<br />5. Huard I...,..c~. Borrower shall keep the impro\'emc:nts now existing or hereafter erected on the Property insured
<br />qainst loss by fire, hazards included within Ihe term "elttended cO\'eralle" and any other hazards for which Lender requires
<br />insurance, This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance camer
<br />providing the insurance shall be chosen by Borrower subject to Lender's appro\'ai which shall not be unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable t(l Lender and shall include a standard mortgage clause. Lender
<br />shall have the right to hold the policies and rcnewals, If lender requires. Borrower shall promptly give to Lender all r.."Ceipts
<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 b>' Borrower.
<br />Unless Lender and Borrower otherwisc agrce in writing, insurancc procccds shall be applied to restoration or repair of
<br />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 sum secured by this Security Instrument. whether 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 I'rocecds, Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, .....hether or not then due. The 3fk1ay period will begin when
<br />the notice is given,
<br />Unless Lender and Borrower otherwise agree in writing, any application of procee1is to principal shall not elltend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under parqraph 19 the Property is acquired b)' lender, Borro"'er's right to any insurance policies anrl procee1is resultinJ
<br />from dam.,e to the Property prior to the acquisition shall pass to Lender to the eltlent of the sums secured by this Security
<br />Instrument immediately prior 10 the acquisition.
<br />6. PrntnalJoa aatt MalnttllaBcl' of Property; LtaKholds. Borrower shall not destroy, damage or substantially change
<br />the Property, allow the Property to deteriorate or commit waUl', If this Security Instrument is 011 a leasehold, Borrower shall
<br />comply "ith the pro\isions of the lease, and if Borrower acquires fee title to the Property, the leasehold and fee title shall not
<br />fMl',~ unless Lender agrccs to the merger in writing.
<br />" I'rotedicHI of LeatIer's RItIIlI I. tk Property; M~ 11II1Iran<<. [{ Borrowcr fails to perform the covenants and
<br />qrec:ments contained in this Security Instrument, aT there is a legal proceeding that may significantly affect lender's ri,h15 in
<br />the Property (such as a proceedinl in bankruptcy, probate, for condemnation or 10 enforce laws Or regulations), then Lender
<br />may do and pay for whatever is necessary to protect the value of the Property and lender's rights in the Property. Lender's
<br />actions may include payinl any sums secured by a lien which has priority over this Security Instrument, appearing in court,
<br />peyina reasOnable attorney's fen and enterinl on the Property to make repairs, Although Lender may take action under this
<br />parq.raph 7 lender does not have to do so, Any amounts disbursed by Lender under this pa:-agraph 7 shall become
<br />.dditional debt of Borrower ~ured by this Security Instrument. Unless Borrower and Lender agfee to other terms of
<br />paymmt, these amounh lhall bear intC:iCSI from the date of disbursement at the Note rate and shall be pa)'abl~, with interest,
<br />Ilpon notice from Lender to Bon-ower requestinl payment.
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