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<br />UNIFORM COVENANTS, Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promplly pay when due
<br />the principal of and interest on the debt evidenced by the Nole and any prepaymenl and late charges due under Ihe Note,
<br />2, Funds for Taxes and Insurance. Subject to applicable law or 10 a written waiver by Lender, Borrower shall pay
<br />10 Lender on the day monthly payments are due under the Note. untillhe Note is paid in fuIl, a sum ("Funds") equal to
<br />one-Iwelftb of: (a) yearly taxes and assessments which may attain priority over Ihis Security Instru)Dent; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortga,ge insurance premiums, if any. These items are caIled "escrow items," Lender may eslimate Ihe Funds due on Ihe
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds shaIl be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an inslitution), Lender shall apply the Funds to pay the escrow ilems,
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items. unless
<br />Lender pays Borrower interesl on the Funds and applicable law permits Lender to make such a charge, Borrower and
<br />Lender may agree in writing that interesl shall be paid on the Funds, Unless an agreement is made or applicable law
<br />requires interest 10 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,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 securily for the sums secured 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 10
<br />the due dates .of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shaIl 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 10 pay the escrow items when due, Borrower shaIl pay to Lender any
<br />amount necessary 10 make up the deficiency in one or more payments as required by Lender,
<br />Upon payment in fuIl of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender, If under paragraph 19 Ihe 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 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 Nole; 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. Charges; Liens. Borrower shall pay all taxes, assessmenls, 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 shaIl pay Ihese obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on time direclly to the person owed payment, Borrower shaIl promptly furnish to Lender all notices of amounts
<br />to be paid under Ihis paragraph, If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments,
<br />Borrower shaIl promptly discharge any lien which has priority over tlLs Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the 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 Ihe Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien, Borrower shaIl satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of no lice,
<br />5. Hazard Insurance. Borrower shaIl keep the improvements now existing or hereafter erecled on the Property
<br />insured against loss by fire, hazards included within the tenn "extended coverage" and any other hazards for which Lender
<br />requires insurance, This insurance shaIl be maintained in the amounts and for the periods that Lender requires, The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld,
<br />All insurance policies and ,renewals shaIl be acceptable 10 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 proof of loss if nol made promplly by Borrower,
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to resloration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is nOllessened, 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 DOl answer within 30 days a notice from Lender that the insurance carrier has
<br />oft"ered to settle a claim, then Lender may coIlecl the 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 nol then due, The 3O-day period will begin
<br />when the notice is given,
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall nol extend or
<br />postpone the due date ofthe monthly payments referred to in paragraphs I and 2 or change the amount of the payments, If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass 10 Lender to the exlent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition,
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shaIl not deslroy, damage or subslantially
<br />change the Property, allow the Property to deteriorate or commit waste, If this Security Instrument is on a leasehold,
<br />Borrower shall comply wilh the provisions ofthe lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing,
<br />7. Protecilon of Lender's Rights in the Property; Mortgage Insurance, If Borrower fails 10 perfonn the
<br />covenants and agreements contained in this Security Inslrument, or there is a legal proceeding'lhal may significanlly affecl
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over Ihis Security
<br />Instrument. appearing in court, paying reasonable attorneys' fees and enlering on the Properly 10 make repairs, Although
<br />Lender may take action under this paragraph 7. Lender does nOI have 10 do so,
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other lerms of pay men I. these amounlS shall bear interest from
<br />the date of disbursement al the Nole rate and shall be payable, with interest, upon notice from Lender to Borrower
<br />requesting payment,
<br />If Lender required mortgage insurance as a condition of making the Joan secured by Ihis Securily lnslrument.
<br />Borrower shall pay the premiums required to mainlain the insurance in effect until such lime as Ihe requirement for the
<br />insurance lerminates in accordance with Borrower's and Lender's writlen agreemenl or applicable law,
<br />8. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Propeny, Lender
<br />shall give Borrower n?ttce at the lime of or prior 10 an inspeclion specifying reasonable cause for the inspection,
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<br />88-103531
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