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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 88- 103062
<br />1. Payment of Principal and Interest; Prepayment and Late Charges, Borrower shall promptly pay when due
<br />the principal of and interest on the debl evidenced by the Note and any prepayment and lale charges due under the Nor ~.
<br />2, Fundll for Taxes and Insurance. Subjecllo applicable law or to a wrillen waiver by Lender, Borrower Sh1 JI 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) YMlrly taxes and assessments which may attain priority over this Securily Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortpse insurance premiums, if any. These items are called "escrow items." Lender mliY estimate Ihe Funds due on the
<br />basis of currenl data and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a federal or
<br />state aseney (including Lender if Lender is such an institution). Lender shallspply Ihe Funds to pay the escrow items.
<br />Lender may no! charge for holding and applying the Funds, analyzing Ihe account or verifying the cs..."1'OW items, unless
<br />Lender pays Borrower interat on the f'unds 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 agreement is made or applicable law
<br />requires interest to be paid, Lender shall nol be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give 10 Borrower, without charge, an annual accounting of the Funds showing credits and debitr. to the Funds and the
<br />purpose for which each d~it 10 Ihe Funds was made. The Funds are pledged as additional security for the sums securui by
<br />this Security Instrument.
<br />If the amounl ofthe Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required 10 pay the escrow items when due, the ex~-s shall be.
<br />at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly pay.nents of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender an}'
<br />amount necessary to make up the deficiency in one or more payments as required by Lender.
<br />Upon paymenl in full of all sums secured by this Security Instrument, Lender shaJl p.omptly refund 10 Borrower
<br />any Funds held by Lendcr If under plIT'lltr"ph I Q the Propeny i~ <;01.1 or acquired hy Lender. Ler.der shall apply. no later
<br />than immediately prior to the sale of the Property or its acquisit.ion by Lender, any Funds held by '_ender at the time 01'
<br />application as a credit againsllhe sums secured by this Security Instrument.
<br />3, AppIicatioa 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 prcpaymt=nt charges due under IlK:
<br />Note; third, to amounts payable under paragraph 2; founh, to interest due; and last, to principal due.
<br />4. Oaarps; Ueaa. Borrower shaI1 pay all taxes., assessments, charges, fines and impositions anributabh: w the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if an}'.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower sha11
<br />pay tbem on time directly to the person owed payment. Borrower shall promplly furnish to Lender all notices of amounts
<br />to be paid under Ibis paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing tbe payments.
<br />Borrower shall promptly discharge any lien which has priority over this Securit}' Instrumenl unless Borrower: (a)
<br />a!fees in writing to the payment of the obligation secured by tbe lien in a manner acceptable to Lender: (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the boldt:r of the lien an
<br />agreement lIlltisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any pan of
<br />tbe Propeny is subject to a lien wbich may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shalllIlltisfy the lien or take one or more of the actions set fonh above .'ithin 10 da)'S
<br />of the giving ofnolice.
<br />5. HuanlIMaranc:e. Borrower shall keep the improvements now existing or bereafter erected on tbe Property
<br />insured against loss by fire, hazards included wit,hin 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 />insurallce carrier providing the insurance sbaJI be cbosen by Borrower subjecl to Lender's approval which shan not be
<br />unreasonably witbheld.
<br />All insurance policies and renewals shall be ~ble 10 Lender and shall include a standard mortgage clause.
<br />Lender shall have Ibe righl to hold the policies and renewal~ If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiunu and renewal notices. In the event of loss, Borrower shall give prompl notice to the insurance
<br />carrier and Lender. Lender may make proof ofloss if not made promptly by Borrower.
<br />Unless Lc:nder and Borrower othcrwiR qn:e in writing. insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feaslble 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 not then due, with any excess paid 10 1Iornnr.-er. If
<br />Borrower abaDdonI thr: Property, or does DOl answer within 30 days a notice from Lender that tbe insurance carrier has
<br />otfered to IeItle a claim, then Lender may collect t.be insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security InstrUment, whether or nOI then due. The 3<kIay period ...'ilI begin
<br />when the notice is giYCD.
<br />UnIaa Lc:nder and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount oftbe payments, If
<br />under parapapb 19 the Property is acquired by Lender, Borrower's righl to any insurance policies and proceeds resultin~
<br />from damaae to the Property prior to the acquisition shall pass to Lender to the extenl of the sums secured by this Securit~.
<br />Instrument immediately prior 10 the acquisition.
<br />6, Pn.. ~.don ud MaiDtaance of I"roperty; Laaebolda. Borrower shall not destroy. damage or substantlaUy
<br />change the Property, allow tbe Property to deteriorate or commit waste. If this Security Instrument is on a lealiehold,
<br />Borrower shall comply with the provisions orlbe lease, and if Borrower acquires fee title to Ihe Propeny. the leasebo1d and
<br />fee title Mall nOl merp unl_ Lender agrees to the mCfJCf in wrilin..
<br />1. ProtectIo. or """"'. _II .. die Property; Mortpee I_ranee. If Bo~'er fails 10perilrm the
<br />covenants and qnemcnts contained in this Security Instrument, or tbe~ is a lepJ proceeding that may signillcantl~. affecl
<br />Lender's nJllts in the Propeny (sucb .., a proceeding in bankruptcy, probate, for condemnatlon or to enforce la",,'I or
<br />reauIalions), then Lender may do and pay for whatever is necessary 10 protecttbe value oflhe- Propeny and Lender's riJhlS
<br />in the Property, Lender's actions may include payin. any sums !lCCured by a lien ",,'hich has priority over th~ Secur.ry
<br />Instrument, appearin. in cool1, payin. rcuonable attorneys' fees and enlerin~ on Ihe Propeny to make rep6iMi, Allhoulth
<br />Lender may take actioo under Ihis paragraph 7. Lender does nol have to do 10.
<br />An)' amounts disbursed by Lender under this panJraph 7 shall become addilional debt of Borro",,'er secured b~' Ihl~
<br />Securily Instrument, Unless Borrower and Lender .cree 10 othcr terms of payment, these amf.lunts shall bear mterest fT\'lm
<br />lhe date of dilbunemC'lt al the Nc.'le rite and Ih.1I be payable. ""'llh mteresl. upon nol1C't' fmm Lende-r If\ BorroWe-l
<br />requrslin. pI)'1Mll1
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