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<br />UNIFOIl ~A COVENANTS, Borrower and Lender covenant and agree as follows: 88- 1 C 2 9 3 :3
<br />I. Payment of Principal and Interest; Prepayment ar.d 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 />Z. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments :Ire 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 allain 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 />mortgl1lge 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 instilution), 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 thai 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 10 pay Borrower any inlerest or earnings on the Funds, Lender
<br />shall give to Borrower, without charge, an annual accounting oCthe 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 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 ilems. shllll exceed the amount required 10 pay the escrow ilems when due. the excess shall be,
<br />at Borrower's oplion, either promptly repaid to Borrower or crediled to Borrower on monlhly payments of Funds. If the
<br />amount of the Funds held by Lender is not ~ufficient to pay the escrow item~ 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 st'Cured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held b)' Lender, If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediatel~ prior 10 the sale of .he Property or its acqui~ilion by Lender, any Funds held by Lender III Ihe time of
<br />application as a credit against Ihe sums secured by this Security Inslrument.
<br />J. AppllratiDtl of Payments. Unless applicable 11Iw provid~'S otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first. to lale charges due under the NOle; second, to prepayment charges due under the
<br />NOle; third. to amounts payable under paragraph 2; fourth. 10 mh:rest due; and 1asl. to principal due,
<br />4. Charxes; Liens. Borrower shall pay' alllaAes. as~e~sments. charges, fines and impositions attributable to the
<br />Property which may alia in priorlly over thi~ Secunty Inslrument, and leasehold payments or ground rents, if any,
<br />Borrower shall pay these obligations in the manner pHwided III paragraph 2. or ifnot paid in Ihat manner. Borrower shall
<br />pay them on time directl}' to the per..on owed payment, Borrower shall promplly furnish 10 Lender all notices of amounts
<br />to be paid under Ihis paragraph, If Borrower mako these: payments direclly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the ltayments,
<br />Borrower shall promplly discharge any lien which has pnonty o\'er this Security Instrument unless Borrower: (a)
<br />agrees in writing to the paymenl of the obligation !>CCured by the hen in a manner acceptable to under; (b) contests in good
<br />faith the lien by. or defends against enforcement of the Ii~n in. legal proceedings which in the Lender's opinion operale 10
<br />pre\'entlhe enforctment of the lien or forfeiture of any part of the Properly; or (c) secures from the holder of the lien an
<br />agreement IMltisfactory 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 attam pnority over thiS Security Inslrumenl, Lender may give Borrower a
<br />nOlice identif)'ing the lien, Borrower shall satisfy Ihe lien or take one or more of the aClions set forth above within 10 days
<br />oflhe giving of nOllct,
<br />5. Hnard Insurance. Borrower shall keep the Improvements now existing or hereafter erecled on the Property
<br />Insured against loss by lire. hazards induded within the term "atended coverage" and any other hazards for which Lender
<br />rcquirel insurance. This insurance shall be maintained in the amounts and for the periods thai Lender requires, The
<br />insurane~ carrier providing the Insurance shall be: chosen by Borrower subjecl to Lender's appro"al which shall nOI be
<br />unreasonably withheld,
<br />All insumnce policies and renewals shall be acceptable to Lender and shallmclude a standard mortgage clause,
<br />Lender shall have the right to hold the policies and renewals, If Lender requires. Borrower shall promplly give to Lender
<br />all receipts of paid premiums and renewal notico, In Ihe e'en I of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender, Lender may make proof of loss Ifnol made promptly by Borrower,
<br />Unless L~nder and Borrower otherwise agree in wriling. insurance pron'eds shall be applied to restoration or rer-air
<br />of the Property damaged, if the resloration or repair is economically feasible and Lender's security is nOI It..''Ssened. If the
<br />resloration or repair is not economically feasible or Lender's secunly would be lessened. the msurance proceeds shall be
<br />applied to the sums !>CCurcd by tltis Security InMrument. whether or not then due. with any excess paid 10 Borrower, If
<br />Borrower abandons the Property, or does not answer within 30 days a nOllce from Lender that the insurance carrier has
<br />offered to scttle a claim, then L:nder may collect the insurance proceeds, Lender may use Ihe proceeds to repair or restore
<br />~ the Property or 10 pay sums secured b}' this Secunty Instrument. whelher or nOI then due. The 3D-day period will begin
<br />when the notice is given,
<br />Unless L~nder and Borrower otherwise agree in writing, any applicallon of proceeds to pnncipal shall not extend or
<br />postP""e the due date oflhe monthly payments referred to in paragmphs I and 2 or change the amount of the payments, If
<br />under paragraph IQ the Propeny is acquired by Lender, Borrower's right to any insurance policies and procec-ds resulting
<br />from damage to the Property prior to Ihe acquisitio:1 shall pass to Lender to the extent oflhe sums s~'Cured by Ihis Securny
<br />Instrument immediatel)' prior to the acquisition,
<br />6. PnserntioD and Malnte1lance of Property; Leaseholds. Borrower shall not destroy, danmge c'r suhstantlally
<br />change the Property. allow the Property to deteriorate or commit waste, If lhls Security Instrument IS on a leasehold.
<br />Borro.'cr shall comply with the' provisions orthe lease. and if Borrower acquires fe<: title 10 lhe Property. the leasehold and
<br />fa: title shall not merge anless Lender agrees to the merger in wriling,
<br />7. Protection of Leader"s Rights in the Propert}': Mortgage Insurance. If Borrower faib to perf,'nn the
<br />cov'cnants and agreemenls contained in this Secunty InMrumenl, or there IS a legal proceeding thai may SIgnificantly aff~'Ct
<br />Lender's rights in the Propeny (such as a pn)C~'Cding in bankruptcy. probate. for condemnation or h' enforce laws or
<br />regulations), then Lender may do and pay for ,,'halever is necessary to prolc'Ctlhe \alue oflhe ProperlY and Lender's nghls
<br />in the Pruperty, Lender's actions may include paYlIIg any ~ums se.:lIred by a hen which has pnoflt~ 'wer this Scrllnty
<br />Inslrument, appearing in couri, paying reasonable allomey,' fees and entenng on the Properl) to make rcpall'\ Allhough
<br />Lender may take action under this pamgraph 7, Lender docs not have In do so.
<br />Any 3f.l0UnlSdisbuncd by Lender under thIS paragraph 7 shall become addltlllnlll debl of BIlrrowcr scnln',1 hy II11S
<br />Secunty InMrument, Unless Borrower and Lender agree 10 other ternl' of payment. lhese lImounts shall hear IIlter.'s' fn'llI
<br />the dale of disbul'Cmenl at the Note rale llnd shall "" paya"le, wllh 1Il1crest. upon nollce frolll t,'",lcr In Borm\\,,,
<br />requcsling payment.
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