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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Intnest: PrepaYID!nt and Late Charges. Borrower shall promptly pay when due the
<br />principal of and interest on the dcbt evidenced by the Note and any prepayment and late charges due under the Note,
<br />1. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to
<br />Lender on the day monthly payments are due under the Note. until the Note is paid in full. a sum ("Funds") equal to on(-
<br />twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold
<br />payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance
<br />premiums, if any, These items are called "escrow items," Lender may eslimate the Funds due on Ihe 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 inmred 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. Lender
<br />may not charge for holding and applying the Funds, analyz.ing the account or verifying the escrow items. unless Lender pays
<br />Borrower interest on the Funds and applicable law pennits I.ender to make such a charge, Borrower a.i1.d Lender may agree 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 Borrower. without
<br />charge. an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to
<br />the Funds was made, The Funds are pledged as additional securily for Ihe 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 ilems, 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 InSlrument, Lender shall promptly refund to Borrower any
<br />Funds held by Lender. If under paragraph 19 the Propcrty is sold or acquired by Lendcr. Lender shall apply, no later than
<br />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 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. Borrower
<br />shall pay these obligations in the manner provided in paragraph 2, or if not paid in Ihat manner, Borrower shall pay them on
<br />time directly to the person owed payment. Borrower shall promptly furnbh to Lender all notices of amounts to be paid under
<br />this paragraph, If Borrower makes these payments directly. Borrower shall promplly furnish to Lender receipts evidencing the
<br />paymenls.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (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 proceedings which in the Lender's opinion operate to prevent
<br />the enforcement of the lien of forfeiture of any part of the Property; or (c) secures from the holder of the lien an agreement
<br />satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is
<br />subject to a lien which may attain 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. Haurd Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term '.extended coverage" 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 carrier
<br />providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender
<br />shall have the right to hold the policies and renewals, If Lender requircs. Borrower shall promptly give to Lendcr all receipts
<br />of paid premiums and renewal notices. In Ihc evcnt of loss. Borrower shall give prompt notice to the insurance carrier and
<br />Lender, Lender may make proof of less if not made promptly by Borro.....er.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />the Property damaged, if Ihe 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 ellcess paid to Borro.....er, If
<br />Borro\'!er abandons the Property, or does nol answer within 30 days a notke 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. whether or not then due, The 30--day period wi\! begin when
<br />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 date of the monthly payments referred to in paragraphs I and 2 or change the amollnt 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 10 Ihe extent of the sums secured by this Security
<br />Instrument immcdiately prior to the acquisition,
<br />6. PTtun'atlon and Maintenance of Property: Leueholdll. Borrower shall nOl destroy. damage or substantially change
<br />the Properly, allow the Property to deteriorate or commit waste, If this Security Instrument is on a leasehold, Borrower shall
<br />comply with the provisions of the lease. and if Borrower acquires fee tille to Ihe Property. the leasehold and fee title shall not
<br />merge unless Lender agrets to the merger in writing.
<br />1. ProtKlloB of Lender's R1ahtli 10 the Property; Mortgagf Insurance. If Borrower fails to perform thc covenants and
<br />agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in
<br />the Property (such as a proceeding in bankruptcy, probate, for condemnation or to 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. l.ender's
<br />actions may include paying any sums secured by a lien which has priority over this Security Inslrument, appeoring in court,
<br />paying reasonable attorney's fees and enlering on the Property to make repairs. Although Lender may lake Relion under this
<br />paragroph 7 lender does not have 10 do so. Any amounts disbursed by Lender under this paragraph 7 shall become
<br />additional debt of Borrower secured by this Security Inslrumenl. Unless Borrower and Lender agree 10 olher terms of
<br />payment, these amounls shaH bear interest from the dale or dhbursement at Ihe NOll' rate and shall he payable, with interesl,
<br />upon nOlke from l.ender 10 Borrower r~questing payment.
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<br />88-101534
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