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<br />UNIFORM COVENAI~TS, Borrower and Lender covenanl and agrec as follows: 88- 102629
<br />1. Payment of Principal and Interest; Prepayment and Late Cha..ges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prcpayment and lale charges duc undcr Ihe Note.
<br />2. Funds for Taxes and Insurance. Subject to applicablc law or to a writtcn waiver by Lcnder. 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 10
<br />one-twelfth of: (a) yearly taxes and assessments which may attain priorilY over Ihis Security Instrumenl; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mongage insurance premiums, if any. These ilems are called "escrow items." Lender may estimale the Funds due on the
<br />basis of current data and reasonable estimales 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 applying the Funds. analyzing the acco:mt or verifying the eScrow items, unless
<br />Lender pays Borrower interesl on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing 1hat interest ~hall be paid on the Funds, Unless an agreement is made or applicable law
<br />requires inleresl to be paid. Lender shall nOI be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower. without charge, an annualllccounting ofthc Funds showing credits and debits to Ihe Funds and the
<br />purpose for which each debit to the Funds was made, The Funds arc pledged as additional securilY for the sums secured by
<br />Ihis Security Instrument.
<br />If the amount of Ihe Funds held by Lendcr, together with thc future monthly payments of Funds payable prior to
<br />Ihe due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, Ihe excess shall be.
<br />al Borrower's option, either promptly repaid to Borrower or crediled to Borrower on monthly payments of Funds, If thc
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay 10 Lcnder any
<br />amount necessary to make up thc 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 Lcnder. Lender shall apply. no later
<br />than immediately pi lor to the sale of the Property or ils acquisition by Lender, any Funds held by Lender atthc time of
<br />application as a credil againslthe sums se.;ured by this Security Inslrument.
<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 />NOle; third. to amounts payable under paragraph 2; founh. fo interest due; and last, to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions anributable to the
<br />Propeny which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligalions in the manner provided in paragraph 2, (\r if not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment, Borrower shall promptly furnish to 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 />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 payment 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 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 pan of the Propeny; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any pan of
<br />the Property is subject to a lien which may attain priority 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 fonh above within ]0 days
<br />ohhe giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafler erected on the Propeny
<br />insured against loss by fire. hazards included within the term "extended coverage" and any othcr hazards 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 insurancc shall be chosen by Borrower subject 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 include a standard mortgage 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 ofloss, Borrower shall give prompt notice to the insurance
<br />carrier and Le....der. Lender may make proof ofloss if not made promplly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or repair
<br />of the Propeny damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If Ihe
<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, with any excess paid to Borrower, IT
<br />Borrowcr abandons Ihc propcny, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collecI the insurance proceeds, Lender may usc the proceeds 10 repair or restore
<br />the Propeny or to pay sums secured by this Security Instrument. whether or not then due, The 3~-day period will bcgin
<br />when the notice is given.
<br />Unless Lcnder and Borrower otherwise agree in writing, any application of proceeds 10 principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change thc amount of the payments. If
<br />under paragraph 19 the Propeny is acquired by Lender. Borrower's right 10 any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender 10 the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition,
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Propeny, allow the Propeny to deteriorate or commit waste, If this Security Instrumcnt is on " leasehold.
<br />Borrower shall comply with the provisions orthe lease. and if Borrower acquires fee title to Ihe Property. 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 tbe Properly; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Inslrument. or thcre is a legal proceeding thaI may significanlly affect
<br />Lender's rights 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 protect t he val ue of t he Property and Lender's rights
<br />in the Propeny. Lender's actions may include pa)~ng any sums secured by a lien which has priority C\\'cr this Security
<br />Instrument, appearing in court, paying rc:asonolblc: attorneys' fees and entering on the Propeny to make repairs, Although
<br />Lender may take action under this paragraph 7. Lender does nOI havc to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by thIS
<br />Security Instrument. Unless Borrowcr and Lendcr agrcc to other tcrms of pay melli, these amounts shall bear 1Il1erest from
<br />the dale of disbursement at the Note rate and shull he pl!yahle. with IIlterest. upon nolicc fwm lcnder '" Borrower
<br />requesting pa)'ment,
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