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<br />UNlFORM COVENANTS, Borrower and Lender covenant and agree as follows: 88- 102992
<br />1. Payment of Principal and Interest; Prepayment and Late Charge!!. Borrower shall promptly pay when due
<br />the principal of and inlerest on the debt evidenced by the Note and any prepayment and late charges due under Ihe Note,
<br />2. Funds for Taxes and Insurance. Subject 10 applicable law or to a written waiver by Lender, Borrower shall pa~
<br />to Lender on the day nlonthIy payments are due under the Note, unlilthe Note is paid in full, a sum ("Funds") equal t J
<br />one-twelflh of: (a) yearly taxes and assessments which may allain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on Ihe Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These ilems are called "escrow items." Lender may estimate Ihe Funds due on the
<br />basis of current data and reasonable estimates of fUlure escrow items.
<br />The Funds shall be held ill an inslitution the deposits or accounls of which arc 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 Ihe escrow ilems.
<br />Lender may nOI charge for holding and applying the Funds, analyzing the account or verifying the escrow ilems, unless
<br />Lender pays Borrower interest on Ihe Funds and applicable law permits Lender to make such a charge, Borrower and
<br />Lender may agree in wriling thaI interest shall be paid on the Funds. Unless an agreement IS made or app!icable 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 annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debir to the Funds was made, The Funds are pledged as additional security for the sums secured by
<br />Ihis Security Instrument.
<br />If the amounl of the Funds held by Lender, togelher with the future monthly payments of Funds payable prior to
<br />the due dales of the escrow items, shall exceed the amount required to pay the escrow items when due, Ihe excess shall be,
<br />at Borrower's option, either promplly repaid 10 Borrower or crediled to Borrower on monthly payments of Funds, If lhe
<br />amoum of lhe Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amounl necessary 10 make up Ihe deficiency in one or more payments as required by Lender.
<br />Upon payment in full of all sums secured by lhls Security Inslrument, Lender shall promplly refund 10 Borrower
<br />any Funds held by '-ender, If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior 10 the sale of the Property or liS acquisition by Lender, any Funds held by Lender al the time of
<br />applicalion as a credit against lhe sums secured by this Security Instrument.
<br />3. Applicalion of Payments. Unless applicable law provides olherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the NOle; second, to prepaymenl charges due under the
<br />NOle; lhird, 10 amounts payable under paragraph 2; fourth, 10 inteTl'St due; and last, to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions allributable to Ihe
<br />Properly which may altain priorlly over IhlS Security Inslrument, and leasehold paymcnls or ground rents, if any,
<br />Borrower shall pay these Obligations 10 the manner provided in paragraph 2, or if not paid in thaI manner, Borrower shall
<br />pay them on lime directly 10 lhe person owed paymen!. Borrower shall promptly furnish to Lender all notices of amounls
<br />to be paid under Ihis paragraph, If Borrower makes these payments direclly, Borrower shall promplly furnish to Lender
<br />receipls evidenCing lhe payments,
<br />Borrower shall promplly discharge any lien which has priOrity over this Security Instrument unless Borrower: (a)
<br />agrees 10 wrillng 10 the paymenl of the obligallon secured by the lien In a manner acceptable to Lender; (b) contests in good
<br />faith the hen by, or defends agalOst enforcement of the lien in, legal proceedings which in the Lender's opinion operale 10
<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 />agreement satisfactory to Lender subordinating the lien 10 thiS Securily Inslrument. If Lender determmes thaI any parI of
<br />the Property IS subject 10 a lien which may allalll Priority over this Security Instrument, Lcnder may give Borrower a
<br />notice Identifying the lien, Borrower shall satisfy the lien or take one or more of I lie actions set forth above within 10 days
<br />of [he giving of no lice,
<br />5. Hazard Insurance, Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured <lgainst loss by fire, hazards included withlO [he term "extended cO\'erage" and any other hazards for which Lender
<br />requires IIIsurance, This insurance shall be maimained in the amounts and for the periods lhat Lender requires, The
<br />IIIsurance carrier prov,ding the insurance shall be chosen by Borrower subjcct to Lender's appro\'al which shall not be
<br />unreasonably wllhhcld,
<br />All Insurance poliCies and renewals shall he acceptable to Lender and shall include a standard mortgage clause,
<br />Lender shall have lhe right to hold the policit.'S and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal nollces. [n the evenl of loss, Borrowcr shall give prompt nolice to the insurance
<br />carner and Lender, Lender may make proof ofloss If not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree 10 "THing, Insunmce proceeds shall be applied to restoration or replOir
<br />of the Property damaged, if the res!oration or repair is economically feasible and Lender's securJty IS not lessened. If the
<br />restorallon or repair is not economically feasible or Lender's secunly would be lessened, Ihe insurance proceeds shall be
<br />apphed to the sums secured by Ihis Security Instrumcnl, whelher or nol then due. with any excess paid to Borrower. If
<br />Borrower abandons thc Property, or does not answer wilhin 30 days a notice from Lcnder that the insurance carrier has
<br />olTered 10 sell Ie a claim, lhen Lender may collectlhe Insurance proceeds, Lender may usc the proceeds 10 repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not Ihen due, The 3D-day period will begin
<br />when the notice is given,
<br />Unless Lendcr and Borrower otherwise agree in wntmg, any application of proceeds to principal shall not extend or
<br />p ,stpone the due date of the monthly payments referred to In paragraphs 1 and 2 or change Ihe amount of the payments, If
<br />under paragraph I q the Properly is acquired by Lender, Borrower's righlto any insurance policies and proceeds resulting
<br />from damage 10 the Property prior 10 the acquislllOn shall pass III Lender to the e~[ent of the sums secured by this Secumy
<br />InstrurT1l~nt immediately pnor to the acquisilion,
<br />6. Preservalion and Maintenance of Propert).; Leaseholds. Borrower shall not destroy, damage or substanlially
<br />change the Property, allow the Property to delenorate or commit waste If IhlS Secunty lnstrurnenl IS on a leasehold.
<br />Borrowcr shall comply wnh the proVisions of lhe lease, and If Bormwer acquires fec title 10 Ihe ['ropen)', Ihe leasehold and
<br />fee title shall not merge unless Lender agrees 10 the merger In wrillng,
<br />7, f>rolection of Lender's Rights in Ihe Properly; Morlgage Insurance. If Borrowcr falls 10 perform the
<br />covenallls and agreements contained in Ihis Securlly Instrument, or Ihcre IS a Icgal pn'ceedll1g thai may slgllllicanlly alfe,'t
<br />Lender's rights In lhe Property (such as a proceeding in bankruptcy, probale, for ,'[mdemnaIIOlI l'r 10 enforce laws or
<br />rcgulallons). then Lendcr lIIay do and pay for whatever is necessary 10 proteclthe value oflhe Property and Lender's rIghts
<br />III the Pruperl}', Lender's actions may Include paYing any sums secured b}' a lien winch has prlPrIly "\'er IllIS Secumy
<br />Instrurm'nl, apJlCdTlng In court, paying reasonable allorneys' f<<'S and enlcnng on Ihe Propeny 10 ma", rcpalrs Although
<br />Lender rnay lal<<. actIon under thiS paragraph 7, Lender does nOI hllvc 10 do so
<br />Any amounls disbursed by Lender under [his paragraph 7 shall hecnme addlllnnal dehtnf HOlrnwcr secured by tillS
<br />Securlly I nSlrurncnt Unlt'S., Borrower and Lender agret'lo 01 her terms nf paymenl, thcse amnUlIls shall hear Int,'resl fn'lll
<br />Ihe date of dlShmsclllcnt at Ihe Nole rale and shall I", payahlc, Wllh 1r11l'fL'Sl, Ul','n 11011'.,' frnlll I <,nd,', In Horn"",!
<br />requesting pay'menl
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