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<br />88- 102712
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<br />UNIFORM COVENANTS, Borrower and Lender covenanl and agree as follows:
<br />I, Payment of Principal and Interest; Prepayment alld 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 late charges due under the Note,
<br />2. Funds for Tues and Insurance. Subject to applicable law or to a writlen 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-twelfth of: (a) yearly taxes and assessments which may altain 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 ~Iimates 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 rhe 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 wriring 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 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 the Funds and the
<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 rhe amount of the Funds held by Lender, together with the future monthly paymenls of Funds payable prior to
<br />the due dates 6fthe escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's oprion, either promptly repaid to Borrower or credited to Borrower on monthly paymenls of Funds, If the
<br />amount of the Funds held by Lender is nOI 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 Properly is sold or acquired by Lender, Lender shall apply, no later
<br />than immedialely 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 amounts payable under paragraph 2; fourth, to interest due; and last, to principal due,
<br />4, Charges; Liens. Borrower shall pay all taxes, assessments, charges. fines and impositions attribulable to the
<br />Property which may altain 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 ifnot paid in that manner, Borrower shall
<br />pay them on time directly 10 the person owed payment. Borrower shall promptly furnish 10 Lender all notices of amounts
<br />to be paid under this paragraph, If Borrower makes these payments direclly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments,
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrumenl 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 enforcemenl of the lien in, legal proceedings which in the Lender's opinion operale 10
<br />preveD! the enforcemenl 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 subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrumenl, 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 />ohhe giving of nOlice.
<br />S. Hazard Insurance, 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 the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably wilhheld,
<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 of loss, Borrower shall give prompt 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 otherwise agree in writing, insurance proceeds shall be applied to restoration or rep:.ir
<br />of the Properly 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 Instrumenl, whether or not then due, with any excess paid 10 Borrower. If
<br />Borrower abandons the Property, or does not answer within 3D days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds, Lender may use the proceeds to repair or reslore
<br />the Property or to pay sums secured by this Securily Instrument, whether or not then due, The 3D-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 dale of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments, If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulling
<br />from damage to Ihe Property prior to the acquisition shall pass to Lender to the exlenl of the sums secured by thiS SecuT1lY
<br />Instrumenl immediately prior to the acquisition,
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste, If this Security Instrument is on a leasehold.
<br />Borrower shall comply with the provisions oflhe lease, and if Borrower acquires fee litle to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger III writing,
<br />7. Protection of Lender's Rights in the Proper~'; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrumem, or there is a legal procl"Cding Ihal may sigmfical1lly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probale, for condemnation or 10 enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's righls
<br />in the Properly, Lender's actions may include paying any sums secured by a hen which has priority mer Ihis SecurilY
<br />Instrument, appearing in court. paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may lake aCllon under this paragraph 7, Lender does not have to do so.
<br />Any amoums disbursed by Lender under thIS paragraph 7 shall become addllional debt of Borrower seL'ured by Ih"
<br />Security Inslrument. Unless Borrower and Lender agree to other terms of pay men I. Ihese amounts shall bear 'oten's, frnm
<br />the dalc of disbursement at the Note rate and shall be payable, wllh interest, up"n OLllIce from lender tp Iinlrllwe,
<br />requesting paymem
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