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<br />88- 103002
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<br />UNIFORM COVENANTS, Borrower and Lender covenant and agree as folIows:
<br />1. Pa)'llleat of Priaeipallllld Interest; Prepa)'lllent lIlId Late ChlUl!cs. Borrower shaII 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 Toes ud luurance. Subject to applicable law or to a written waiver by Lender, Borrower shaII pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in fulI, a sum ("Funds") equal to
<br />one-twelfth of: (a) yearly tues 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 />mortgage insurance premiums. if any. These item~ are called "escrow items," Lender may estimate the Funds due on the
<br />basis of current da14 and reasonable estimates offuture escro\\' 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 />slllte 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 acconnt 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 that interest shall be paid on the Funds. Unless an agll~ement is made or applicable law
<br />requires inlercst to be paid, Lender shall nol 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 />Ifthe amount of the Funds held by Lender. together with the future monthly payments of Funds payable priono
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. It [he
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amounl necessary to make up the deficiency in one or more payments as requIred by Lend~r,
<br />Upon paym~t in fuII of all sums secured by this Security Instrument, Lender shaII promptly refund to Borrower
<br />any Funds held by Lender, If under paragraph 19 lhe ProperlY is sold or acquired hy Lender, Lendel shall apply, no later
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lend:r at the time of
<br />appliUition 15 a credit against the sums secured by this Security Instrument
<br />3. AppUcati1lll of Pcyeeau. Unless applicable law provides otherwise, aII payments received by Lender under
<br />paragraphs I and 2 shaII be applied: lint, to late charges due under lhe Note; second, to prepayment charges due under the
<br />Note; third, to amounts payable under pnagraph 2; fourth, to interest due; and last, to principal due.
<br />4. CIIarps; Ueu. Borrower shaII pay all taxes, assessments, charges, fines and impositions anribu14ble to the
<br />Property which may attain 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 if not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment, BoITower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this parasraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharg-.: any lien which hat pnonty over thiS Security Instrument unless Borrower: <a)
<br />agrees in writing to the payment of the obligation secured by the hen m a manner acceptable to Lender; (b) contests in good
<br />faith the lien by. or defends apinst enforcement of the lien In. legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the hen or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />qrell!l1lent satisfactory to Lender subordiJUting the lien to thIS Security Instrument. If Lender determines that any pan of
<br />the Property is subject to a lien which may attam pnonly over this Security Instrument. Lender may give Borrower a
<br />notice identifyins the lien. Borrower shall satisfy the hen or tAke one or morc of the actions set fonh above within 10 days
<br />of the giving of notice.
<br />!!. HuanlI_. Borrower shall keep the Improvements now existing or hereafter erected on the Property
<br />insured lIgainstloss by fire. hazards included wllhlD the tenn "elltended coveragc" and any other hazards for which Lender
<br />requires insurance. This insurance shall be mmnlluned m the amounts and for the periods that Lender requires. Thc
<br />insurance carrier providing the msurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance pohcies llJld renl'Wals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the poliCIes and renl'Wali. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal nollces, 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 Borrow"r otherwlsc agree In wnting, insurance proceeds shall be applied 10 restoration Of repair
<br />of thePl'operty damaged. if the restoration or repair is economicalIy 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 Instrument, whether or nOI then due, with any excess paid to Borrower, If
<br />Borrower abandons the Property, or docs not answer within 30 days a notice from Lender that the insutance carner has
<br />otrered to seule a claim. then Lender may collect the msurance proceeds, Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not th~ due, The 3O-day period will begin
<br />.,hen the notice is tiven,
<br />Unless Lender and Borrower otherwise agree in writing. any application of proc~s to principal shall not elltend or
<br />postpone the due dateoftbe monthly payments rcferred to in paragraphs I and 2 or change theamounl of the payments, If
<br />under paragraph 191he Property is acquired by Lender, Borrower's right to any msurance poliCies and proceeds resulting
<br />from damqe to the Property prior to the acquisition shall pass to Lender to the elltent of the sums secured by thIS Secunty
<br />Instrumenl immediately prior to the acquisition.
<br />'" PI'eR"atiOllull Mainu_e of Properw; Leuellolcb. Borrower shall nol destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or wmmit waste If thiS Secunt)' Instrument IS on a lellSChold.
<br />Borrower shall comply with the provisions ofthe lease. and if Borrower acquIres fee IItle 10 the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merler in writmg.
<br />7. Proteetioll of LetIdu'. Rlpta in the Property; MortpJlC Insurance. If Borrower fails to perfonn Ihe
<br />covenants and agreementll contained in this Security Instrument. or therc IS a legal proceeding 1hllt may Significantly aWccl
<br />Lender's rights in the Property (such at a proceedinl! in bankruptcy, probate. for condemnallon or to enforce laws or
<br />relulations), then Lender may do and pay for whatever is necessary to proteclthe value of the Propert)' and Lender's nllhts
<br />ID Ihe Properly, Lender's actions may include paying IIny sur", secured by a hen which has priorit)' o\'cr this Security
<br />Instrumenl, a"purina in coun. Pllyinll reasonable allomeys' fees and entcnng on lhe Propert)' to make ~paln, Althou!\h
<br />Lender may take action under this paragra"!) 7, Lender docs nOI have 10 do so
<br />Any amounts disbuned by Lender lder thIS pllragraph 7 shall become addlltOnal debt or Borrower secured by Ihis
<br />Sccuntl' Instrumr.nt, Unl~s Borrower ar" .cnder agree to other lerms of paymell1. these amounts shall bear mlel'C!'l f(l)lIl
<br />the dale of disbursement at the Nole I' and ~hall be payable, wllh IDleresl, upon notice rrom Lender ,,, Borrower
<br />requesting pIIymenl
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