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<br />88- 103747
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<br />UNIFORM COVENANTS,' B.orfower~q~ lit.endcrcov~h~1 and agree as Follows:
<br />1, Payment of PrIncipal aild Inierestj Prepayment and Late Charges, Borrower shall promptly pay when duc
<br />the principal of and interest on the debt evidenced by the Notc and any prcpayment and late charges due under thc Note.
<br />1, Funds for Taxes and Insurance. Subject to applicable law or to a wrilten waiver by Lcndcr, Borrowcr shall pay
<br />to Lender on the day monthly paymcnts arc due under the Note, until the Note is paid in full, a sum ("Funds") ~ual to
<br />one-twelfth of: (a) yearly taxes and assessments which may altain priority over this Security Instrumcnt; (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 items arc called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of fu ture escrow items.
<br />The Funds shall be held in an institution the dcposits or accounts of which are insured or guaranteed by a federal or
<br />sIBte agency (including Lender if Lender is such an institution). Lender shall apply the Funds 10 pay thc escrow items.
<br />Lender mllY not charge for holding and applying the Funds, analyzing the account or verifying Ihe 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 agreemcnt 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 accounting of the Funds showing credils 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 />If .l;;; ;;mount of the 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 Ihe :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 Borrewer on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay the cscrew items when du\:o Borrower shall pa)' 10 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 Instrument. Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender. Lendcr shall apply, no later
<br />than immediately prior to the salc of the Preperty or its acquisition by Lender. any Funds held by Lender at the time of
<br />application as a credil against the sums secured by this Securit)' Instrument.
<br />3. Application of Pa)'menta. Unless applicable law provides otherwise. all payments received by Lender under
<br />paragraphs 1 and 2 shall be: applied: first, 10 late charges due under the Note; second, to prepayment charges due under the
<br />NOle; third. to amounts payable under paragraph 2; fourth. 10 interest due; and last. to principal due.
<br />4. Cbaraes; LieD" Borrower shall pay all taxes. assessments, charges, fines and impositions anributable to the
<br />Property which may Allain 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 l. or if not paid in that manner, Borrower shall
<br />pay them on tim, directly to the penon owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragnph. If Borrower mako these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrewer shall promptly discharge any lien which has pnorily over this Security Instrument unless Borrewer: (a)
<br />agrccs in writing to the payment of the obligation secured by the lien In a manner ac~:eptable 10 Lender; (b) contests in good
<br />faith thc lien by, or defends against enforcement of the lien in. Icgal proceedings which in thc Lender's opinion operate to
<br />prevenlthe enforcement of the licn or forfeiture of any part or the Property; or (c) secures from thc holder of the lien an
<br />agreementliatisfactory to Lender subordinaling the Iicn to thiS Se.;urity Inslrument. If Lender determines that any part of
<br />the Propeny il> subject to a lien which may altain priont)' over Ihis Security Instrument. Lender may gi"e Borrower a
<br />notice Identifying thc lien. Borrower shall satisfy the lien or take one or more of the actions set forth abc,'c within 10 days
<br />of the giving of notice.
<br />5. Hazard Insuranc~. Borrewer shall keep the Impro"ements now existing or hereafter erected on the Propeny
<br />insured agaiMlloss by lire, hazards included within the term "ell' ended 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 />insunnce carner providing the insurancc shall be: chosen by Borrowcr subject to Lender's approval ,.'hich shall not be
<br />unreasonably withheld.
<br />All iMurance pohcio and renewals shall be acceptable to Lender and shall IIlclude: a sumdard mortgage clause.
<br />Lender shall have the right to hold Ihe policies and renewals. If Lender requires. Borrewer shall promplly give to Lender
<br />all receipts of paid premiums and rcnewal notices. In the event of loss. Borrower shall give prompt notice to the insunnce
<br />carrier and Lender. Lender may make proofofloss ifnot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance: proceeds shall be applied to restoration or repo.ir
<br />of the Propeny damaged. if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restontion or repair is not economically feasible or Lender's secunty would De 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 lIbandons the Property, or does not answer within 30 days a notice from Lender that the insurance carricr has
<br />otrered to sellle a claim, then Lender may collect Ihe Insurance proceeds. Lender may use the proceeds 10 repair or reslore
<br />the Property or to pay sums secured by this Secunty Instrument. whcther or nOI then due. Thc 30-dl!Y period will begin
<br />when Ihe notice is given.
<br />Unless Lender and Borrower otherwlsc agree In writing, any apphcation of proceeds 10 princIpal shall nO! extend or
<br />poslpone Ihe duc dale Oflhc monthly paymellls refcrred to in paragraphs I and 2 or change the amount of the paymcnts. If
<br />under paragraph 191he Properl,y is acquired by Lender. Borrower's nght to any Insurance policies and procel't.ls re!oultlllg
<br />from damage 10 the Propert)' prio! 10 the acquisition shall pass 10 Lender 10 the eAtenl oflhe sums secured by thIS Secunt).
<br />Instrument immediately pnor to Ihe acqUisition.
<br />6. Praerntioa aad Malntenanc~ of Property; LeaJeholds. Borrower shall not destroy. damage or substanually
<br />change the Property, allow the Property to deleriorate or commil wastc, If this Securit). Instrument is on a leaschold,
<br />Borrower shall comply with the provisions of the lea!oe, and If Borrower acquircs fee tllle to the Properly. the Icasehold and
<br />fee tille shall not merge unlelis Lender agrees to Ihe merger an wriling.
<br />1. Protection l>>f Lende,', Rlpta in the Propeny; Mortllllge Insurance. If Borrower fails 10 ~rrOnll lhe
<br />covenantt and alreements containlld in this SecurilY Inslrument. or there is a legal proceeding thatmll)' ~Iglllficantly affe':l
<br />lAmdcr's right' in the Propeny (such as a proceeding In banJ.:ruplcy. probate. for condemnalion ;:Ir 1(' enforce laws or
<br />rqulations), then Lender may do and pay for whatever is necessar)' to prote"t the value of the Prorerty and Lender's riShls
<br />in the Property, Lender'lllCtlons may include paying any sums secured by a lien which has Ilriorl1y over thiS Se.:unly
<br />Instrument. appc:IIring in courl. paying reasonable auorneys' fees and enlering on the Pro~rly 1<1 make repalr~ ^hhou~h
<br />Lentler may take action under thisparagr.ph 7, Lender docs .10t have 10 do so.
<br />, ~ny amounts disbuncd by Lender under Ihil paragraph 7 shall become additional debt of n"~r"wer ~ecured b~ 11m
<br />SKu. " ( Instrument. Unless Borrower and Lender .Iree 10 other terms of payment, lhese amounh shall bear 1II1er,.,. from
<br />the .1 e of disbursement at t~ Note rate and shall be pa)'nble, ,..ilh anterest, upon noll,'e From Lender Il' Borrower
<br />reql. '". payment.
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