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<br />88- 102947
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<br />UNIFORM COVENANTS, Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Interes~ PreJNIyment and Late Cblll1les, Borrower shall promplly 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 Taxes and Inlurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on Ihe day monthly payments are due under Ihe Note, until the Note is paid in full, a sum ("Funds") equal to
<br />one-twelfth of: (a) yearly tues and 115scssments which may attain priority-over Ihis Security Instrument; (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 items are called "escrow items," Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow ilems,
<br />The Funds shall be held in IIn institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />~tate aacncy (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 asn:e in writing 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 the amount of the Funds l:eld by Lender, together with the future monthly p3yments 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 ellCess shall ~
<br />at Borrower's option. either promptly r~paid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sulfidenl 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 re~und to Borrower
<br />any Funds held by Lender, If under paragraph 191he Property is sold or acquired by Lender, Lender shall al'ply, no later
<br />than immediately prior to the sale of the Property or Its acquisition by Lender, any Funds held by Lender at Ibe time of
<br />application as a credit apinst the sums secured by this Securily Instrument.
<br />3, Appllcatloll of Paymenb. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shllll be applied: first. to late charges due under the NOIe; 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. ~ L1e111. Borrower shall pay all tues, Il55C5Sments. charges, lines and impositions attributable to the
<br />Property which may atRain priority.over this Security Instrumenl, and leasehold payments or ground rents, if any,
<br />Borrower shall pay these obliptions in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on time directly to the peBOn owed payment, Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this pcragraph, 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 Securily Instrument unless Borrower: (a)
<br />agrees in writin,to the payment ofthe obliption lIClCured by the lien in a manner acceptable 10 Lender; (b) contests in good
<br />faith the lien by, or defends aaainst enforcement of the lien in, legal proceedings which in the Lender's opinion operate fo
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />a,rcement satisfactory 10 Lender subordinatina the lien to Ihis Security Instrument, If Lender determines that any pan of
<br />the Property is subjecl to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice idcntifyin(! the lien, Borrower shall satisfy the lien or take one or more of Ihe actions set fonh above within to days
<br />of the livin, of notice,
<br />5. Huanlluul'Ute. Borrower shall keqlthe improvements now existing or hereafter erected on the Property
<br />insured alainstloss by fin:, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance, Thi3 insurance shall be maintained in the amounts and for the periods that Lender requires, The
<br />insurance carrier providing Ihe insurance shall be chosen by Borrower subject 10 Lender's approval which shall not be
<br />unreasonably withheld,
<br />All insurance poliCle5 and renewals shall be acceptable to Lender and shall include a standard mongage clause.
<br />Lender shall have the naht to hold the polil:ies Ilnd renewals, If Lender requires, Borrower shall promptly live to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall live prompt nOlice 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 aaree In writing, insurance proceeds shall be applied to restoration or repair
<br />of the Propeny damaaed. if Ihe restoratton or repair is economically feasible and Lender's !iCeurity is not lessened, If the
<br />restoration or repair is not economically feasible or Lender's lIClCurity would be lessened, the insurance proceeds shall be
<br />applied to the sums lIClCured by this Security Instrument, whether or not then due, with any ellcess paid to Borrower. If
<br />Borrower abandons the Propeny, or does not answer within 30 days a notice from lender thaI the insurance carrier has
<br />ofI'cred to settle I claim, then Lender may collect the insurance proceeds, Lender may use the proceeds to repair or restore
<br />the Propcny or to pay sums secured by this Security Instrument. whether or nOl Ihen due, The JO.day period will begin
<br />when the notice is given,
<br />Unles! Lender and Borrower otherwise alree in writing, any application of proceeds to principal shill nOl extend or
<br />postpone the due date ofthe monthly payments referred 10 in paragraphs I and 2 or change the amount of the payments. If
<br />under paraaraph 19the Property is acquired by Lender, Borrower's righl to any Insurance poliCies and proceeds resulting
<br />from damale to the Property prior to the acquisilion shall pass to Lender to Ihe elUent or the sums secured by this Seeunt)'
<br />Instrument immedialely prior to the acquisition,
<br />6, P-.ation ud MalnteDallCe of ProperJt'; LeaIehoIds. Borrower shall nOI deslroy, damage ot \ubstantiall)'
<br />change the Propc:ny, allow the Property to deteriorate or commil wasle, If this Seeurily Instrumenl is on a leasehold,
<br />Borrower shall comply with the provisions ofthe lease, and if Borrower acquires rec tille to the Propeny, Ihe leasehold and
<br />fee title shall not nterac unless Lender agrees to Ihe mer,er in writing,
<br />7. ProcecdoII of Lnder', Rlpts In the Property; Mortpae Insurallce. If Borrower fails to perform Ihe
<br />covenants and IJrcementscontlined in this Security Instrumenl, or there 15 a legal proceeding thai may signiftcantly alfect
<br />Lender', riJhtl in the Property (such as a proceeding in bankruptcy, probate, ror condemnation or 10 enforce lows or
<br />re.ulations), then Lender may do and pay for whatever is necessary 10 proleel I he value of the Propeny and lender's nghts
<br />In the Property, Lender's actions may include paying any sums secured by a lien which has priority over this Securily
<br />Inslrummt, ap)mlring in coun. paying reasonable attorneys' fCC!i ond enlenng on Ihe Property 10 make repal"" Allhougb
<br />Lender may takc action under Ihis parlgraph 7, Lender does nOI have 10 do 50
<br />Any amounts dIsbursed by Lender under Ihis paragr:lph 7 shall become additional debt of Dorrower secured by this
<br />&ecuflly Inltrument Unlet.s Borrower and Lender allr<< 10 olher lerms or payment. these amounts shall ~ar tnleresl from
<br />Ihe dlte of disburacmenl al Ihe Nole rate nnd shall be payable, wllh mteresl, upon noll,e from lender to Borrower
<br />requeslinJ JIlIyment
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