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<br />88-101618
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<br />UNIFOHM COVENANTS. Borrower and Lendcr covenant and agrec as follows:
<br />J. Payment or Principal and Interest; Prepayment and Late Charges. Borro.ver shall prompt)\, pay when due
<br />the principal of and interest on the debt evidcnced by the Note and any prepaymcllI and la!e charges duc undcr thc Note.
<br />2. Funds ror Taxes and Insurance. Subject to applicable law or to a wrillcn waiver by Lender, Borrower shall pay
<br />10 Lender on thc day monthly payments arc duc under the Nole, until the Notc is paid in full, a sum ("Funds") equal to
<br />one-twelfth of: (a) yearly taxes and assessments which may allain 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 itcms arc callcd "cscrow itcms." Lender may estimate the Funds due on thc
<br />basis of current dllta and reasonable estimates of fmure escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a fcderal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lendcr may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrowcr 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 bc required to pay Borrower any inlercst or earnings on the Funds. Lender
<br />shall give to Borrower, without charge:, all annual accounting of the Funds showing credits and dcbits 10 the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledgcd as addilional security for the sums securcd by
<br />this Security Instrument.
<br />If the amount of the Funds held by L,.nder, together with the fUl ure monthly payments of Funds payable prior to
<br />the due dates of the escrow ilems, shall exceed the amount rcquired to pay the escrow items whcn due, the cxcess shall be,
<br />at Borrower's option. cither promptly repaid to Borrowcr or c::redited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficielll 10 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 reqUlred by Lender.
<br />Upon paymcnt in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquircd by Lender, Lender shall apply, no later
<br />than immediately prior to the sale of the ProperlY or Its acquisition by Lcnder, 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 providc~ otherwise, all payments received by Lender under
<br />paragraphs] and 2 ..hall be applied: first, to late charges due under the NOle; second, to prepayment charges due under the
<br />Note: third, to amounts payable undcr paragraph 2; fourth, 10 interest due; and last, to principal due.
<br />4. Charges; Liens, Borrowcr shall pay all taxes, assessments, charges. fines and imposnions attributable to thc
<br />Property which may altain priority over this Sccurity Instrument, and leasehold payments or ground rents, if any_
<br />Borrower shall pay these obligations III the manncr provided in paragraph 2. or if not paid 111 that manner. Borrower shall
<br />pay them on time directly to I he person owed paymenl. Borrower shall promptly furnish 10 Lender all notices of amoun!s
<br />to be paid under this paragraph. If Borrower makes these payments dlrcctly, Borrower shall promptly furnish 10 Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has pnorlty ovcr this Security IllStrumenl unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien In a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opmion operate 10
<br />prevent the enforcement of the lien or forfciture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinatmg the licn to this Securily Instrument. If Lender determines Ihat any pan of
<br />the Properly is subject to a lien whIch may attam pnorlty o\'er this Security Instrument, Lender may give Borrower a
<br />notice identifying Ihe lien. Borrowcr shall satisfy Ihe hcn or t,lkc aIle or more of the actions set forth above within 10 days
<br />of the giving of notice_
<br />S. Hazard Insurance. Borrower shall keep Ihe IInprnvements now exislmg or hereafter erected on the Property
<br />insured agaillStloss by fire, hazards included wllhin the Icrm "exlended coverage" and any other hazards for which Lendcr
<br />requires insurance. This insurance shall be mamlRmcd in Ihe amounts and for the periods thaI Lender requires. The
<br />insurance carner providing the insurance shall be ChOSe!l by Uorrowcr subject to Lendcr's approval which shall not be
<br />unreasollllbly withheld.
<br />Allmsurance polici~s and renewals shall be acccptable to Lender and shall include a standard mortgage clause_
<br />Lendcr shaH havc thc right to hold thc policics and rcnewab. If Lender reqUires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In thc event of loss. Borrower shall give prompt notice to the insurance
<br />carncr and Lender. Lender may make proof of loss If not made promptly by Borrower.
<br />Unless Lt'nder and Borrower otherwise agree In "'Tlting, lIlsurance proceeds shall be applied to resloration or repr..ir
<br />of the Property damaged, if the rcstoration or repair is cconomlcally feasible and Lender's security is not lessencd. If the
<br />resloral1on or repair IS not economically fcasible 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 thcn due, wlIh any excess paid to Borrower. If
<br />Borrower abandons the Property, or docs not answer within JD days a notice from Lender that the Illsurance carrier has
<br />offered to sellle a claim. then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />Ihe Property or to pay sums secured by thIS Securit) Instrument, whcthcr or not Ihen due. The 3D-day period will begin
<br />when the notice is glven_
<br />Unless Lender and Borrower otherwise agree III writlllg, any applil.:atJOn of proceeds 10 pnnCipal shall not extend or
<br />postpone the due date of the monthly payments referred 10 III paragraphs] and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender. Borrower's righl tc any insurance pohcIes and proceeds rcsultmg
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the SUIIlS sccured by IhlS Security
<br />Instrulllcllllfnmedlately prior to Ihe acquisition.
<br />6, Preservation and Maintenance or Property; Leaseholds. Borrower shall not dcstroy, damagc or substanllally
<br />change the Propcrty, allow the Property to delenorate or commll waste_ If this Secunly Instrument IS on a leasehold,
<br />Borrower shall comply wllh 'hc provisions of the lease, and if Borrower acquires fec IItle 10 the Property. thc leasehold anci
<br />fee tttle shall not mcrge unless Lender agrces;o the merger III writing.
<br />7. Protection or Lender's Rights in the Propert).; Mortgage Insurance. If Borrower f,lll!. to perform the
<br />covenants and agreements contained IIllhis Securlly Instrument, or therc IS a legal proceeding thaI may slgllllieantly :llfec!
<br />Lender's rights in the Property (such as a procecding III bankruptcy, probate, for condcmnatlon or 10 enforcc laws or
<br />regulations), then Lender may do and pay for whatever is necessary to proleclthe \'alue of lhe Property and Lender', nghts
<br />in the Properly. Lender's action.. may mclude paying any sums secured by a hen whl(,'h has priofll) o\er thiS SecLlrlty
<br />Instrument, appearing in court, paying reasonable atlomeys' fees and cntering on the Propt.rty In make repmrs ^ Ithollgh
<br />Lender may lake action under this paragraph 7, Lender does not have to do so.
<br />Any amoullts disbursed by Lendcr under Ihis I'aragraph 7 shall become addlllonal d,'bl of B(lrwwer scc<,rcd by' IllIs
<br />. SeclInty Instrument. Unless Borrower and Lender agree to 01 her terms of paymen!. th.,s., amnllllls shall he:>r IllIerest fmlll
<br />Ihe date of dlsbur..,clIlcnl al ~he Notc rate and shall be payable. With !flleies!. lIptln rl<ll1c.. fn'fl1 Lender t" Bl'IT<'\\t"f
<br />reque\lmg payment
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