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<br />I
<br />88-101656
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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 shall promptly pay whell due
<br />the principal of and interest on thc dd)t cvidenced by Ihe Nole and any prepayment and lat/: charges due under the NOIC,
<br />2. Funds for Tnxes and Insurance. Subjcct to applicable law or to a written waiver by Lender, Borrower shall pay
<br />10 Lender on the day monthly payments are due under the Note, until the Note is paid ill full, a sum ("Funds") equal 10
<br />one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents 011 the Property, jf :.IllY; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, ifany. These items are callcd "cscrow items." Lender may cslimale the Funds duc on the
<br />basis ofcurrcnt data and reasonable estimates offuture escrow items.
<br />The Funds shall be held in an institution the deposits or accounts l~f 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 Ihe 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 pny Borrower any interest or c:lfI1ings on the Funds. Lender
<br />shall give to Borrower, without charge, an annualaecounting of the Funds showing credits and debils 10 the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds arc plcdgeu as addil ional securily for I he 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 escrow items, shall exceed the amount required to pay the escrow Items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or ('[edited to BorlOwer on monthly payments of Funds. ]1' 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 Lender.
<br />Upon payment 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 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 lime of
<br />application as a credit against the sums secured by this Securily Instrument.
<br />J. Application of Payments. Unless applicablc law providcs otherwise, all payments receivcd by Lender under
<br />paragraphs I and 2 shall be applied: firs!. to late charges due under the Note; second, to prepayment charges due undcr the
<br />Nole; 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 10 lhe
<br />Property which may allain priority over this Security Instrumenl, and leasehold paymenls or ground rents, if any.
<br />Borrower shall pay these obligat ions in Ihe manner provided in pamgraph 2. (If if not paid in t hat manner, Borrower shall
<br />pay them on time directly 10 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 />reeeipts evidencing the payments,
<br />Borrowcr shall promptly dischargc any lien which has priority over this Security Instrumcnt unless Borrowcr: (a)
<br />agrees in writing to thc 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 opinion operate 10
<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 lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvemenls now existmg or hereafter erected on the Property
<br />Insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintaincd in the amounts and ior the periods thaI 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 t(1 Lender and shall include a standard mortgagc clause.
<br />Lender 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. ]n the event of loss. Borrower shall give prompt notice to the insurance
<br />earrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or repair
<br />of 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 !iecurity would be lesscned. the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. ]1'
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lendcr that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may LIse the proceeds 10 repair or restore
<br />the Property or to pay sums secured by this Sccurity Instrument, whether or not then dUe. The 30.day period will begin
<br />when 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 amount of the payments. If
<br />under paragraph 19 the Properly is acquired by Lender. Borrower's right to any insurance policies and procceds 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; l,easeholds. Borrower ..hall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If :Im. Secum)' Instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquires fee title 10 the ProperlY, the leasehold and
<br />fee title shall not merge unless Lender agrec.<i to the merger in writing.
<br />7. Protection of Lender's Rights In the Propert}'; :\!ortgage Insurance. If Borrower faib 10 perform the
<br />covenants and agreements contained in this Security ]nstrumenl, or there is a legal proceeding that may significanlly alfect
<br />Lender's rights in the J~roperty (such as a proceeding in bankruptcy. probate. for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatevcr is necessary to protect the value of the Property and Lender\ righls
<br />in the Property. lender's actions may include paying any sums secured by a Ikn which has priority over this Security
<br />Instrument, 3Pl"'~ring in court. paying reasonable allorneys' fees and entering on the Property tn make repairs. Although
<br />Lender may take action under this paragraph 7, lender does not have 10 do so.
<br />Any arnounts di!Oburscd b)' Lemler under this parngraph 7 shall become additional debt of Bonower securcd Ill' this
<br />Security Instrumenl. Unless Borrower and Lender agree to other lerms of payment. these amounts shall hear ll1terl'st froll1
<br />the dale of disburs("Ol<."nl al Ihe Note rate and shall be payahle. wllh inleresl. upon nntice fn)(l\ L('lIllcr III nnrrnwcr
<br />requestlng paymC'nt,
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