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<br />88- 102337
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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 debl evidenced by the Note and any prepayment and late charges due under the Note,
<br />2. Funds for TaxeI and Insurance. Subject to applicable law or to a wriuen waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under Ihe Note. until the Note is paid in full, a sum ("Funds") equal to
<br />one-twelfth of: (a) yearly tues and assessments which may auain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on Ihe Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage 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 offuture 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 the escrow items,
<br />Lender may not charge for holding and applvinll 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 pay Borrower any ir'..rt"it or earnir'6s on the Funds. Lender
<br />shall give to Borrower, without charge. an annual accounting of the Funds sho\'. ;"~ ",,,,,'its and debits to the Funds and the
<br />purpose for which each debit to the Funds was made, The Funds are pledged as a".l,lional 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 cf 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 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 lIS a credit against the sums secured by this Securil y Instrument.
<br />3, Applicatioa of Payments. Unless applicable law provides otherwl~. all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under Ihe Note; second. to prepayment charges due under the
<br />Note; third, 10 amounts payable under paragraph 2; fourth, to Interest due; and laSl. to principal due-
<br />4. Charles; liens. Borrower shall pay all taxes. assessments, charges. lines and impositions attributable to the
<br />Property which may auain priority over this Securit)' Instrument, and lea~hold pa)'IIlents 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 dir~tly to the person owed payment. Borrower shall promptl)' furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments dtrectly. Borrower shall promplly furnish to Lender
<br />receipts evidencing the payments,
<br />Borrower shall promptly discharge any lien which has pnonty O\'er thiS Security Instrument unless Borro.'cr: (a)
<br />agrees in writing to the payment of the obligation secured by the hen In a manner acceptablc to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of Ihe lien In, legal proc~inlts which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the I>ropeny; or Cc) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to thiS &cunt)' Instrument. If Lender determines that an)' part of
<br />the Property is subject to a lien which may auain pnont)' over thiS ~urity Instrument. Lender may gis'e Borrower a
<br />notice identifying the lien, Borrower shall satisfy the hen or take onc or more of the actions ~t forth above .ithin 10 da)'S
<br />of the givin, of notice.
<br />S. HaanlI_. Borrower shall keep the Impnwements no.' elllsting or hereafter erected on the Property
<br />insured against loss by fire, hazards included .'lIhin the term "extended coverage" and an)' 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 />iDlUraDce carrier providing the in~urance 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 10 Lender and shall include a standard mortgage clause.
<br />Lender shall ha"e the right to hold the policiCS and renewals. If Lender requires. Borrower shall promptly gi\'e to Lender
<br />all receipts of paid premiums and renewal notices, In the e"ent of loss. Borrower shall gi\'e prompt notice to the Insurance
<br />carrier and Lender. Lender may makc proof ofloss Ifnot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in wrillng, 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 Dol lessened. If the
<br />~tion or repair is not economically f~ble or Lender's $CCurit)' wOllld be IC'!'!ieI1N. the insurance p~ shall be
<br />applied to the sums s.ecured 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 nOlice from Lender Ihatthe insurance carrier has
<br />otrered to 5ClIle a claim, then Lender may collect the insurance proc~s, Lender ma)' u~ the proceeds 10 repair or restore
<br />the Property or to pay sums secured by thiS Security Instrument. whether or not then due, The 30-day period .ill begin
<br />when the notice is given.
<br />Unless Lender and Borro.'er otherwl5C agree In writing, any apphcallon of proceeds to prinCIpal shall not ext~ild or
<br />postpone the due date ofthe monthly payments referred to in paragraphs 1 and 2 or change the amount ofth~ payments, (f
<br />under paragraph 19 the Property is acquired by Lender, Borrower's nghlto an)' Insurance policies and proceeds resulting
<br />fromdarnage to the Property prior to the acquisition shall pass to Lender to Ihe elltent oflhe sums secured by Ihls Securit)'
<br />Instrument immediately prior to the acquisition,
<br />6. Prelenation and Maintell8llce of Prope...; Leaseholds. Borrower shall not dest ray. damage or substantially
<br />change the Property, allow the Property to deteriorate or commit ""aSic, If thIS SecUnlY Instrument IS on a leasehold,
<br />Borrower shall comply with the provisions of the lea~, and if Borrower acquires fee 111 Ie 10 the Property. Ihe leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing,
<br />7. ProIection of Lender', Riabtl in the Properly; MonPlle (nsurance, If Borrower falls to perfonn Ihe
<br />covenants and aveements contained in this Security Instrument, or Ihere IS a legal proceeding that ma~' slgmlicantl~ alTect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probale, for condemnallon or to enforce laws or
<br />rqulations), then Lender may do and pay for whatever is necessary to protect the value of the Properly and Lender\ n~hts
<br />in the Property, Lender's actions may include paying any sums secured by a hen whIch has prionty o"er lhl' Security
<br />Instrument, appearing in court. paying reasonable attorneys' fees and enlenng on Ihe Property to make repairs Althou!lh
<br />Lender may take action under this paragraph 7, Lender does not have 10 do so.
<br />Any amounts disbursed by Lender under thiS paragraph 7 shall become addlllonal debt of Borrower secured h~ 1111,
<br />Security Instrument. Unless Borrower and Lender agree to other terms of paymenl. these amounts ,hall bear II1len..,t ffllm
<br />the date of dilbursement 01 the Note raIl' and shall he payable, wilh II1lere<ol. upon nOllce from Lender '" H,'m'"'.'r
<br />requestin, payment
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