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<br />88- 10241('8
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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 promplly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any pr~paymenland late charges due under Ihe Note,
<br />2, Funds for Taxes and Insurance. Subject to applicable law or to a wrillen waiver by Lender, Borrower shall pay
<br />to Lender on th~ udY monthly payments are due under the Note, unlil the Nole is paid in full, a sum ("Funds") cqual to
<br />one-twelflit of: (a) yearly taltes and assessments which may attain priority over this Security Instrumcnt; (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 estimale 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 10 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 10 make such a charge. Borrower and
<br />lender may agree in writing that 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 to pay Borrower any imerest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accouming of the Funds showing credits and debits 10 the Funds and the
<br />purpose for which eaeh debit to the Funds was made. The Funds arc pledged as additional security for the sums secun:d by
<br />this Security Instrument,
<br />If the amount of the Funds held by Lender, together with the future monthly paymcnts of Funds payable prior to
<br />the due dates orthe escrow items, shall eltceed the amoum required to pay the escrow items when due. the eltct'Ss shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on momhly payments of Funds. Iflhe
<br />amount of the Funds held by Lender is not sufficient 10 pay the escrow items \\hen due. Borrower shall pay to Lender any
<br />amount necessary 10 make up the deliciency in one or more payments as required by Lender,
<br />Upon payment in full of all sums secured by this Security Instrumenl, Lender shall promplly refund to Borrower
<br />any Funds held by Lender, Ifunder paragraph 19the Property 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, an)' Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrumen!.
<br />3, Application of Payments. Unless applicable law provides otherwise, all payments receivt'll by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note: s~'Cond. to prepayment charges due under the
<br />Note; third. to amounts payable under paragraph 2; fourth, 10 inter~st due: and last. to principal due.
<br />4. Charges; Liens. Borrower shall pay all taltes, assessments, charges, lines and impositions auributable 10 the
<br />Property which may atlain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in Ihe manner provided in paragraph 2. or if not paid in that manner. Borrower shall
<br />pay them on time direclly to the person owed payment. Borrower shall promplly furnish 10 Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />receipls evidencing the paymenls.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower. (3)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />failh the lien by, or defends against enforcement of the 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 tile lien an
<br />agreement satisfactory 10 Lender subordinating the lien to this Security Instrumen!. If Lender determines that any part of
<br />the Property is subject to a lien which may auain priority over Ihis Security Inslrument. Lender may' give Borrower a
<br />notice idemifying the lien. Borrower shall satisfy the lien or take one or more of the aClions sct forth above within 10 day's
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now eltisling or hercafler erected on the I'ropeny'
<br />insured against loss hy fire, hazards included wilhin the term "elttended coverage" and any other haz.ards 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 providing the insurance shall be chosen by Borrower subjeel to tender'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 sholl have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly giv'e to Lender
<br />all receipts of paid premiums and renewal notict'S. In the event of loss, Borrower shall giv'e prompt notice 10 the insurance
<br />carrier and Lender. Lender may make proofofloss ifnot made promptly by Borrower.
<br />Unless Lender and Borrower olherwise agree in writing. insurance proce~'lIs 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 nol economically feasible or Lender's security would be k'!;sened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due. with any eltcess paid to Borrower. If
<br />Borrower abandons the I)roperly, or does not answer within 30 days a noticc from Lendcr thai thc insurance carrier has
<br />offered to scule a claim. Ihen Lender may colleclthe insurance proceeds. Lender may use the proceeds 10 repair or restore
<br />the Property or 10 pay sums secured by this Security Instrument. whether or not Ihen due. The 30-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower olherwise agree in writing, any IIpplication of proce~'lIs 10 principal shall not exlend or
<br />poslpone the due date of the monthly payments referred to in pamgraphs I ami 2 or change the amount of the paym.::nts, If
<br />under paragraph 19the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds lesulling
<br />from damage to the Property prior to Ihe acquisition shall pass to Lender 10 the cltlent of the sums secured by this Security
<br />Instrument immediately prior to lhe acquisition,
<br />6. Presenatlon and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or SUbsl:lI1lmlly
<br />change Ihe Property. allow the I'roperly to deteriorute or commit waste. If this Security Instrument is on 'I leasehold.
<br />Borrower ~hall comply wilh Ihe provisions of the leasc.and if Borrower acquires fee litle to the Properly. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7, Protection of Lender's Rights in the Property; Mortgage Insuranee. If Borrower fails 10 perform the
<br />covenants and agreements eontained in this Security Instrument. or there is a legal proceeding Ihul mil)' signil1c:lI1t1y alTe,'1
<br />Lender's righls in the I'ropert)' (sl!ch as a proceeding in bankruptcy. probate, fer condemnation or 10 enforce Iuws ,lr
<br />regulations), then Lender may do and pay for whalever is necessary to proh~cllhe value oflhe Property alll! Lender's rights
<br />in Ihe Properly. Lender's aetions may include paying IIny sums secured by II lien which has priority <l\'er this Security
<br />Instrument, appearing in court. paying reasonable attorneys' fees IInd entering on the Property to make replllTS Althoullh
<br />Lender may take action under this parugmph 7. Lender docs nol hllve to do so,
<br />Any amounls disbursed by Lender under Ihis paragraph 7 shall become uddiliol1l1l deht of Borrower secured hy 11l1s
<br />Security Instrulllen!. Unless norrower and Lender IIgree 10 other lerms of puyment. I hese amounts shull hear mIen's' fn'm
<br />the dllte of disbursement III the Nole mIl' und shull be puyable. with mterl'sl. uplln 11l1lke from Lcndl'r 11' Born",,'..
<br />requesting payment.
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