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<br />UNIFORM COVENANTS, Borrower and Lender covenan.t and agree as follows: 88-10340 4
<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 debt e\'idenced by the Note and any prepayment and late charges due under the Note.
<br />2, Funds for Taxes and Insurance, Subject to applicable law or to a wrillen waiver by Lender, Borrower shall 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) yearly taxes and assessments which may alia in priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents or. the Pro"~rty, if any; (c) yearly hazard insurance premiums; and (d) )'carly
<br />mortgage insurance premiums, if ,"~ These items are called "escrow items," Lender may estimate the Funds due on the
<br />basis of current data and reasona' .,~ .>;;li...ates 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 />slate agency (including Lender jf 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 agree in writing that interest shall be paid on the FII"lds, 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 accounling 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 s.:cured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, togelher with the future monthly payments 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 excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount orthe Funds held by Lender is not sufficient to pay the escrow ilems 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 Inslrument, Lender shall promptly refund 10 Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender nt the time of
<br />application as a credit against the sums secured by Ihis Security Instrument,
<br />3, AppUcatlon of Paymenll. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: fint, to late charges due under the Note; second, to prepay men I charges due under the:
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Otaraa; Ueu. Borrower shall pay all taxes. assessments. charges, fines and impositions aUributable to the
<br />Property which may altain priorilY oller Ihis Security Inslrument, and leasehold payments or ground renls, if an)'.
<br />Borrower shall pay Ihese obligalions in Ihe manner provided in paragraph 2, or if not paid in thaI manner. Borrower shall
<br />pay them on lime direclly to the person owed paymenl. Borrower shall promptly furnish to Lender all nolice!> of amounts
<br />to be paid under this paragraph. 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 Security Instrumenl unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable 10 Lender; (b) contesls in good
<br />faith Ihe lien by. or defends apinst enforcement of the lien in, les.1 proceedings which in the Lender's opinion operale to
<br />prevenl the enforcement of Ihe lien or forfeilure of any pan of Ihe Property; or (c) secures from the holder of the lien an
<br />lllreemenl satisfaclory 10 Lender subordinaling the lien to this Securily Instrument. If Lender determines thai any pan of
<br />the Propeny is subjecl to a lien which may altain priorily oller this Security Instrument, Lender may" give Borrower a
<br />notice identifying the lien, Borrower shall salisfy Ihe lien or take one or more of the aclions set fo"h abo,'e wilhin 10 days
<br />oflhe giving of notice.
<br />5. HuanlI_, Borrower sh.ll keep the improvemenls now existing or hereafter erecled on the Prope"y
<br />insured apinst loss by fire, hllZllrds included within the term "elllended coverage" and any other hazards for which Lender
<br />requins insurance. This insurance sMll be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance sMII be chosen by Borrower subjert to Lender's approval which shall not be
<br />unreasonably withheld,
<br />All insurance policies and renewals shall be acceptable 10 Lender and shall include a slanl.hlrd mortgage c1aU>oC..
<br />Lender shall have Ihe right 10 hold Ihe poliCIes and renewals, If Lender requires, Borrower shall promptly gille 10 Lender
<br />all receipts of paid premiums and renewal notices, In the even I of loss. Borrower shall give prompt notice 10 Ihe insurance
<br />carrier and Lender, Lender may make proof of loss ifnot made promptly by Borrower,
<br />Unless Lender and Borrower otherwiw: agree in writing, insurance proceeds shall be applied to resloration or repair
<br />of the Property damaged, if the resloralion or repair is economically feasible and Lender's securily is not lessened, If I he
<br />resloration or repair is not economic:aIl)' feasible or Lender's securilY would be Icsw:ned. the insurance proceeds shall be:
<br />applied to lhe sums secured by this Securily Inslrument, whether or not then due. with any ellcess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender thai Ihe insurance carrier h..
<br />oII'ered to settle a claim. then Lender may collect the insurance proceeds, Lender may use the proceeds to repair or reslore
<br />the Property or 10 pay sums 5CCUred by this Security Inslrument, whether or nOI then due, The 30-day period will begin
<br />when the notice is gillen.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not eXlend or
<br />~pone the due date oflhe monlhly payments referred to in paragraphs I and 2 or change the amount orthe payments, If
<br />under paraaraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damqe to the Property prior 10 the acquisilion shall pass 10 Lender to the eXlent of. hc sums secured by this Securi.y
<br />Instrument immediately prior 10 the acquisition.
<br />6. Prelenatioa IIIIlI MalDteunee of Property; Leuebol.... Borrower shall nol destroy, damage or substanll:lIly
<br />change the Property, allow the Prope"y to deteriorate or commil waste. Ir this Security Imlrument is on a leasehold,
<br />Borrower sh.n comply with Ihe provisions of the lease. and if Borrower acquires fee lit Ie to the Pmpen), the leasehold and
<br />fee litle shall not merge unless Lender qrees to the merger in writing,
<br />7. PIVtectIon of Leader'. Rfallb In the Property; MortpllC Insurance, If Borrower fails to perform Ihe
<br />covenanls and .,reements ootuained in this Security Instrument, or Ihere is a legal proceeding that may significanlly affecl
<br />Lender's risl1l1 in the Property (such lI& a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulalions),lhen Lender may do and pay for whatever is necessary to protecllhe value oflhe Propeny and lender's righ"'-
<br />in Ihe Propeny. Lender's actions may include paying any sums secured by a lien which has priority over Ihis Secunly
<br />Instrument, appearinll in cou". paying reasollable attorneys' fllCS and enlering on the Properl) In make repairs. Ahhnu!!h
<br />Lender may take action under titis paragraph 7. Lender does nOI ha\'c to do so.
<br />Any amounts disbul'Kd by Lender under this parallraph 7 shall become addilional debl of Borrower sccurl'<l h)' 11u.
<br />SecurilY Instrumenl. Unless Borrower and Lender allree to other terms ofpaym~n'. these amounls shall hear mleres' from
<br />the date of disbunement at the Note rale and shall be payable, ""ilh intcresl. upon nOllce from Lender 1<' norr""er
<br />rcqueslinl payment
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