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<br />88- 102243
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1, Payment or Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when du:
<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. Funds ror Tues and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments "Ire due unde!" 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 altain 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 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 shall 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 tu pay the escrow, items.
<br />Lender may not charge for holding and applying the Funds, analyzing the accounlor verifying the escrow items, linless
<br />Lender pays Borrower interest on the Funds and applicable law penn its 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 Jaw
<br />requires interest to be paid, Lender shall not be required to pay Borrower any, interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the 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 addilional 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 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 credited to Borrower on monthly payments of Funds. If 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 Ihe 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 Propeny is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to the sale of Ihe 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 paymenls received by Lender under
<br />paragraphs I and 2 shall be applied: firsl, to lale charges due under the Note; second, to prepayment charges due under Ihe
<br />Note; third, to amounts payable under paragraph 2; fourth, to inlerest due; and last, to principal due.
<br />4. Charges: Liens. Borrower shall pay all taxes, assessmenls, charges, fines and impositions auributable to the
<br />Property which may auain priorily 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 ifnot paid in Ihat manner, Borrower shall
<br />pay them on time directly 10 the person owed payment. Borrower shall promptly furnish 10 Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes Ihese payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the paymenls,
<br />Borrower shall promptly discharge any lien which has priority over this Securily Instrument unless Borrower: (a)
<br />agrees in writing to the payment of Ihe obligation secured by the lien in 1\ manner acceplable to Lender; (b) conlcsls in good
<br />faith the lien by, or defends against enforcement of lhe lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien orforfeilure of any part of the Property; or (c) secures from the holder of che lien an
<br />agreement satisfactory to Lender subordinating the lien to Ihis Security Instrument. If Lender delennines thaI any pari of
<br />the Property is subject to a lien which may altain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien, Borrower shall satisfy lhe lien or take one or more of the actions set forth above wilhin 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance, Borrower shall h-ep the improvements now exisling 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 />requircs insurance. This insurance shall be maintained in Ihe amounts and for lhe periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrowcr subjecI 10 Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause,
<br />Lender shall have the right to hold the policies and renewals, If Lender requires, Borrower shall promptly give 10 Lender
<br />all receipts of paid premiums and renewal notices. In lhe event of loss, Borrower shall give prompt nolicc to the insurance
<br />carrier and Lender. Lender may make proof ofloss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or rep..ir
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />rcstoration or repair is not economically feasible 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 then due, with any excess paid 10 Borrower. If
<br />Borrower abandons the Property, or docs not answer within 30 days a notice from Lender that Ihe insurance carrier has
<br />offered to settle a claim, then Lender may collectlhe 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 will begin
<br />when the nolice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds 10 principal shall not extend or
<br />postpone the due date oithe monthly payments referred to in paragraphs I and 2 or change the amount of thc 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 10 the Property prior to the acquisition shall pass 10 Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Presenation and Maintenance of Property; Leaseholds, Borrower shaIl not destroy. damage or subslanliaIly
<br />change the Properly, allow the Propeny to deteriorate or commit waste. If lhis Security Inslrumenl is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquircs fee tille to the Property. Ihe leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's RllIhts in the Property; Mortgage Insurance. If Borrowcr fails to perform the
<br />covenants and agreements contained in lhis Security Instrument, or Ihcre is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may de. and pay for whalever is necessary 10 protect the value oflhe ProperlY and Lcnder's righls
<br />in Ihe Property, Lender's actions may include paying any sums secured by a lien which has priority over thIS Security
<br />Instrument, appearing in court, paying rea!oOnable attorneys' fces and entering on the Properly to make rCp31fS, Although
<br />Lender may take action under this paragraph 7, Lender docs not have to do so,
<br />Any amounls disbursed by Lender under Ihis paragraph 7 shall become nddillOnal debt "r Borrower secured by 11m
<br />Security Instrument. Unless Borrower and Lender agree 10 other terms of payment, these amounts shaIl bear Il1terl'Sl from
<br />the dale of disbursement at the Note rate and shall be payable. with Interest. upon not'L'C frnm Lcnder to Borrower
<br />requcslin, payment.
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