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<br />UNIFORM COVENANTS, Borrower and Lender covenant and agree as follows: 88- 102451
<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 prepayment and lale charges due under the Note,
<br />2. Funds for Taxes and Insurance. Subject to applical:.le 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-twt:lIlh 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 />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 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 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 b."
<br />requires interest to be paid.. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Len .:,'r
<br />shall give to Borrower, without charge. an annual accounting of the Funds showing credits and debits to the Funds and tr.~
<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 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 Prop~rty 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. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note: second, to prepayment charges due under the
<br />Note; third, to amOUnlS payable under paragraph 2; founh. to interest due; and last. to principal due,
<br />4. CbarRes; liens. Borrower shall pay all taxes. assessments. charges, fines and imposilions altributable to the
<br />Property which may altain priority, over this Security Instrument. and leasehold pa)'ments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if nOI paid in Ihal manner. Borrower shall
<br />pay Ihem on time directly 10 the person owed payment. Borrower shall promplly furnish to Lender all notices of amounts
<br />to be paid under this paragraph, If Borrower makes these paymenls directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority o\'er Ihis Security Inslrument unless Borrower: (a\
<br />agrees in writing to the paymenl of the obligation secured by the lien in a manner acceptable to Lender; (b) conlests in good
<br />faith the lien by. or defends against enforcement of the lien in, legal proceedings which in the l.ender's opinion operate 10
<br />prevent the enforcement of the lien or forfeiture of any part of Ihe Propeny; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien 10 this Security Instrument. If Lender determines that any pan of
<br />the Propeny is subject to a lien which may altain priority over this Security Instrumenl, Lender may give Borro\\'er a
<br />notice identifying the lien, Borrower shall satisfy the lien or take one or more of the actions set fonh abo\'e within 10 da}'s
<br />of the giving of notice.
<br />5. Haurd 11IIIIranee.. Borrower shall keep the improvemenls now existing 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 maintained in the amounts and for Ihe periods Ihat Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subjecl to Lender's appro\-al which shall not be
<br />unreasonably withheld,
<br />All insurance policies and renewals shall be acceptable to Lender and shall mdud.: a standard mongage 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. In the event of loss. Borrower shall gi\'e prompt notice to tht: insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in wriling. 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 security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due. \\"lth any excess paid to Borro,",er. If
<br />Borrower abandons the Propeny. or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to senle a claim. Ihen Lender may collect the msurance proceeds, Lender may use the proceeds 10 repair or restore
<br />the Propeny or to pay sums secured by Ihis Security Instrument. whether or not then due. The 3O-day period will begin
<br />when Ihe notice is given,
<br />Unless Lender and Borrower olherwise agree in writing. any application of proceeds to principal shall not ex lend or
<br />postpone the due dale ofthe monthly pa)'ments referred to in paragraphs I and 2 or change the amounl of the payments, If
<br />under paragraph 19 the Propeny is acquIred by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Propeny prior to the acquisitiqn shall pass 10 Lender to Ihe extenl of Ihe sums secured by Ihls Secunly
<br />Instrument immediately prior to the acquisition.
<br />6. Prelenatlon and Maintenance of ProperJ&'; Leaseholds, Borrower shall not destroy, damage or substantially
<br />change the Property, allow Ihe Propeny to deleriorate or commit waste. If this Securit)' InslJumem is on a leasehold.
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquires fee title to the PropenY,lhe leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender'. Rlpt. in the Property; MonllllKe Insurance. If Borrower fails 10 perform the
<br />covenants and agreements contained in this Security Instrumenl, or there is a legal proceeding that may stgmfit.:anlly' affect
<br />Lender's righls in the Propeny (such as a proceeding in bankruptcy, probate. for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to prC"cct the value ofthe Propeny and lender's rights
<br />in the Propeny, Lender's actions may include paying any sums secured by a lien which has priority' o\'cr Ih.s Security'
<br />Instrument. appearing in court, pa)'ing reasonable altorneys' fees and entering on lhe Property to makc repairs. Allhough
<br />Lender may take action under this paragraph 7. lender does nol have to do so.
<br />Any amounts disbursed b)' Lender under Ihls paragraph 7 shall become addilJonal d~bl of Borrowcr secured by Ihls
<br />Security Instrument. Unless Borro",,'er and Lender agree to other terms of payment. lhese amounls shall bear Inlerest from
<br />the cUte of dIsbursement at Ihe NOle rate and shall be payable. ",,'ith .meres!. upon noHee from Lender In Ilnrro,,'er
<br />requesting paymenl.
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