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<br />88-101843
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note,
<br />2. Funa for Toes 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) yearly taxes 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 />mortgqe insurance premiums, ifany. 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 sball be held 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 inteRst 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 />shal1 give to Borrower, without charge, an annual'accounting ofthe 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 amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates .of tbe escrow items, shall exe-"Cd the amount required to pay the escrow items when due. the excess shaH be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Burrower on monthly payments of Funds. If the
<br />amount oftbe Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shan 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 time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. ApplicatIoIl of Pa)'IDHtI, Unless applicable law provides otherwise, all payments reuived by Lender under
<br />parapphs 1 and 2 sh.~1 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. 0Iarps; LinL 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.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay than on time djrectly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid UDder this parqraph. If Borrower makes these payments directly, Borrower shaH promptly furnish to Lender
<br />receipts evidencins the payments.
<br />Borrower sball promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writinJ to the payment ofthe obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by. or defends against enforcement ofthe lien in, legal 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 />qreemcnt satisfactory to Lender subordinating the llen to this Security Instrum~t.IfLender 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 ideIltifying the lien. Bonower shall satisfy the lien or take one Of more of the actions set forth above within 10 days
<br />oftbe pvina fA notice.
<br />5. ...... bsaruce. Borrower shall keep the improvements now existing or hereafter erect~ on the Property
<br />insured apinst loss by fire, hazards included within the term "extended 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 providinS the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unRMOnably withhdd.
<br />AU iDsurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />LcDdcr ...... have the riaht to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all RCeipts of pUd premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and LcDdcr. Lender may make proof of loss if not m~e promptly by Borrower.
<br />UnIesa Lender and Borrower othel'A'ise 811ft in writing, insurance proceeds shall be applied to restoration or repair
<br />of tile Property damqed, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration 01' repair is not economically feasible or Lmder'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 ellcess paid to Borrower. If
<br />Borrower abudons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />o4I'ered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property 01' to pay sums secured by this Security Instrument, whether or not then due. The 3O-day period will begin
<br />when the notice is liven.
<br />Unless Lender and Borrower otherwise asrec in writing, any application of proceeds to principal shall not extend or
<br />postpone the due dale of'the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />under panpapb 19 the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />from damqe 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. rr....tioIl... Mai.teuIln of~. Luleltolda. Borrower shall not destroy, damage or substantially
<br />chanae the Propeny, allow the Property to deteriorate or commit waste, If this Security Instrument is on a leasehold,
<br />B"..ower sball comply with the provisions of the lease. and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title IIWI not mel'ae unless Lender..res to the merler in writing.
<br />7. ~ of ......... RiP*- i. tM Pro,erty; Mortpae Insurance. If Borrower fails to perform the
<br />covenants and apeements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's riPt. in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />rep1ationl), then Leeder may do and pay for whatever is necessary to protect the value ofthe Property and Lender's rights
<br />in the Property. Lender's actions may include payina any sums secured by a lien which has priority over this Security
<br />Instnunent,appearin, in court, payina Tasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under this paralraph 7, Lender dOel not have to do so.
<br />Any amounts disbursed by Lender under this paralraph 1 shall become additional debt of Borrower seemed by this
<br />'Security lilstnunent. Unleu Borrower and Lender alree to other terms of payment. these: amounts shall bear interest from
<br />the date of diabunement at the Note rate and shan be payable, with interest. upon notice from Lender to Borrower
<br />reqUftlina payment.
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