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<br />88-102289
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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 when due
<br />the principal of and interest on the debt evidenced by the Note and any prepaymenl and lale charges due under Ihe Nole.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or 10 a wrillen waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly paymenls are due under Ihe Note, unlllthe Note is paid in full, a sum ("Funds") equal to
<br />one.twelfth of: (a) yearly taxes and assessments which may allain priority over Ihis SecurilY 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, ifany. These items are called "escrow items." Lender may eSlimale the Funds due on the
<br />basis of current dala 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 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 Ihat interest shall be paid on the Funds. Unless an agreemenl is made or applicable law
<br />requires interest to be paid, Lender shall not be required 10 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 Ihe Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for Ihe 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, Ihe 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 Ilems when due, Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one or more payments as required by Lende~.
<br />Upon payment in full of all sums secured by this Security Instrument. Lender shall promplly refund to Borrower
<br />any Funds held by Lender. If under paragraph ]'1 Ihe Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to the sale of the Prop"'rty or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit againsl the sums secured by this Security Instrument.
<br />J. Application or Payments. Unless applicable law provides olherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, 10 late charges due under the Nole; second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to Interest due; and lasl, 10 principal due.
<br />4. Charges; Uens. Borrower shall pay all taxes, assessments, charges, fines and impositions allributllble 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 them on time directly to the person owed payment. Borrower shall promplly furnish to Lender all notices of amounts
<br />to be paid under Ihis paragraph. If Borrower makes Ihese payments directly, Borrower shall prompl]Y furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the paymenl 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 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 />agreement satisfactory to Lender subordinatmg the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priorilY 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. HIIZ8l"d IDlurance. Borrower shall keep the improvements now eXIsting or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any olher hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for Ihe periods thaI Lender requires. The
<br />insurance carrier providing Ihe insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies a!ld renewals shall be acceptable to Lender and shall mclude a slandard mortgage clause.
<br />Lender shall have the right \0 hold the policies and renewals. If Lender requires. Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewcl notices. In the event of loss, Borrower shall give prompl notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower olherwise agree in writing, insurance proceeds shall be applied 10 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 securily 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 to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />olfered 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 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 1 and 2 or change Ihe amount 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 to the extent of the sums secured by Ihis Security
<br />Instrumenl immediately prior to Ihe acquisition.
<br />6. Prl!SCT1/atlon and Maintenance of ProperJW; Leasebolds. Borrower shall nol destroy. damage or substantially
<br />change the Property. allow the Property to deteriorate or commit waste. If this Security Instrumenl is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall nol merge unless Lender agrees to the merger in writing.
<br />7. Protert!on of Lender's Rlghbi in the Property; Mortgage Insur""ee, If Borrower fails 10 perform the
<br />covenants and agreements contained in Ihis Security Instrument, or there is a legal proceeding that may significantly affecl
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate. for condemnation or to enforce laws or
<br />reguIlItions), then Lender may do and pay for whatever is i1a:ess11ry to proleclthe value of the Property and Lender's nghts
<br />in the Property. Lender', actions may include paying any sums secured by a lien which has priority over Ihls Secunl~
<br />Instrument, appearing in court, paying reasonable allomeys' fees and entenng on the Property to make repa'.... Altimugh
<br />Lender may take action under this paragraph 7. Lender does not have to do 50.
<br />Any amounts dIsbursed by Lender under I hIS paragraph 7 shall become addlllonal debl of Borrower 5e.:u rcd h~ t h"
<br />Secunt). Inslrument Unless Borrower and Lender agree to other terms of payment. Ihese amounls shall hear Inlcrest from
<br />the dale or dIsbursement at the' Note ral~ and ~hall he pB)Oablc:. \\.'Hh IOtc-rC''''1. upon notICe' from l.ender h\ Btlrnl",'C'T
<br />requesllng pa ymen t
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