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<br />88-103b01
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<br />UNIFORM CoVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. PaymeDt of PrindpalllDd Interest; PrepllymeDt IIDd Late Charges. Borrower shall promptly pay whcn duc
<br />the principal of and interest on thc debt evidenced by the NOle and any prepaymcnt and late charges due under the Note.
<br />2. Funds for Toes IIDd Insurance. Subject to applicable law or to a written waiver by Lendcr, Borrowcr shall pay
<br />to Lender on thc day monthly payments arc 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 attain 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 />monpge 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 items.
<br />The Funds shall be held in an institutiop the deposits or accounts of which are insured or guaranteed by a federal or
<br />!ltate agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay thc escrow items.
<br />Lender may not chargc 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 pennits Lender to make such a charge. Borrower and
<br />Lendcr may agree in writing that interest shall be paid on I.be Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any intcrest 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 thc sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with thc 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 whe\') 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 of the Funds held by Lender is not sufficient 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 sp.:cured by this Security Instrument. Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is ~old or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to thc sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application 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 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. Cbarps; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable 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. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrowcr shall prc.mptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lendcr; (b) contests in good
<br />faith thc lien by, or defends against enforcement ofthe lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfciture of any part of the PropenYi or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender dctennines that any part of
<br />the Propeny is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien, Borrower shall satisfy thc lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />S. Hazard IDlurance. Borrower shall keep the improvements now existing or hcreafter crected on the Propeny
<br />insured against loss by fire, hazards included within the lenn "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 />insurance carrier providing thc insurance shall be chosen by Borrower subject 10 Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause,
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices, In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proofofloss ifnol made promptly by Borrower.
<br />Unless Lender and Borrowcr otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasiblc 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 to Borrower, If
<br />Borrower abandons the Property, or does not answer within 30 days a noticc from Lender that the insurance carrier has
<br />ofrered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to rcpair or restore
<br />the Property 01' to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin
<br />when the notice is given,
<br />Unless Lender and Borrower otherwise agree in writing, any applicalion 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 of the payments. If
<br />under paragraph 19 the Propeny is acquired by. Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Propeny prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Prelenatlon IIDd Maintenance ofProperft'; Leueholdl. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Propeny to deteriorate or commit waste, If this Security Instrumenl is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title 10 Ihe Property, the leasehold and
<br />fee title shall not merle unleu Lender agrees to the merger in writina,
<br />7. Protection of Lender'. Rip.. In the Property; Mortpp Inlurance, If Borrower fails to perform the
<br />covenants and aareemenls contained in this Security Instrumenl, or there is a legal proceeding that may significantly affect
<br />LendeT's riabts in the Ptopcny (such as a proceedlnB in bankruptcy, probate. for condemnation or to enforce laws or
<br />relulationl), then Lender may do and pay for whatever is ncceuary to protect Ihe value or Ihe Property and Lender's righls
<br />in the Propeny. Lender's actions may include paying any sums secured by a lien which has priority ovcr this Security
<br />Instrument, appearing in court, Ilaying reasonable attorneys' fees and cntcring on Ihc Property to makc repairs. Although
<br />Lender may take action under this paragraph 7, Lender does not have to do so.
<br />Any amounl. disbursed by Lendcr under Ihis paragraph 7 shall become additional debt of Borrower secured by Ihis
<br />Security Instrument. Unleu Borrower and Lender agree 10 olher lerms of payment. these amounts shall bear interest from
<br />the date of disbursemenl al Ihe Nole rale and shall be payable. with tnleresl, upon notice from Lender 10 Borrower
<br />requestinl payment,
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