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<br />88- 103855
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<br />UNIFORM COVENM.n Borrower and Lender covenan't and agree liS follow~:
<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 evidenced by the Note and any prepayment and late charges due under the Note.
<br />Z. Funds for Taxes and Insurance. Subject to applicable law or to a wrinen 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 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 />mortgage 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 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 institution). Lender shall apply the Funds to pay the escrow items.
<br />Lenjer 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 Funds, Unless an agreement is made or applicable law
<br />requires il'ilere!>t 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 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 secured by
<br />this Security Instrument,
<br />If the amount 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 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 of the Funds held by Lender is not ~ufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary to make up the deficie"c~ in one or more payments as required by Lender,
<br />Upon payment in full of all sums '>ccured by this Security Instrument. Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Propen}' is sold or acquired by Lender, Lender shall apply. no later
<br />lhan immediately prior to the sale of Ihe Propeny or its acquisition by Lender. any Funds held by Lender at the lime of
<br />application as a credit against the sums secured by I his 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, 10 prepayment charges due under the
<br />Note; third. to amounts payable under paragraph 2; founh,to interest due; and last. 10 principal due.
<br />4. CIIarps; UeDI. Borrower shall pay all talles, assessments, charges. fines and impositions attribulable to the
<br />Property which may allain priam)', 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 10 the person owed payment. Borrower shall promptly furnish to Lemler all notices 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 to Lender: (b) contests in good
<br />faith the lien by, or defends againsl 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 Propeny: or (c) secures from Ihe holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any pan 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 the lien or take one or more of the aClions set fonh above within 10 days
<br />of the giving of notice_
<br />S. Hazan! Insurance. Borrower shall keep Ihe improvements now elllsting or hereafter erected on the Propeny
<br />insured against loss by fire. hazards Included within the term "eJ.\ended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shll be maintained in the amounts and for the periods that Lender requires, The
<br />insurance carrier providing the insurance shall be ehosen by Borrower subject 10 Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policics and renewals shall be acceptable 10 Lender and shall include a standard mongage clause,
<br />Lender shall have the right to hold the policies and renewals. If Lender requIres. Borrower shall promptly give to Lender
<br />all recripts of paid premiums and renewal notiCe!>, In the event of loss. Borrower shall give prompl notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if nol made promptly by Borrower,
<br />Unless lender and Borrower othe~i!oC agree in wnllng. msurance proceeds shall be applied 10 restoralion or repair
<br />of the Propeny damaged. if the restoration or repair is economically feasIble 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, whelher or not Ihen due. with any excess paid to Borrower If
<br />Borrower abandons Ihe Property. or docs not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim. then Lender may collect the insurance proceeds. Lender may use the proceeds 10 rep;ur or reslore
<br />the Property or to pay sums secured b~' Ihis Seeunt) Instrumenl, whether or not Ihen due. The 30-day period will begm
<br />when the notice is given,
<br />Unles!> Lender and Borrower otherwise agree m wriung, an)' application of proceeds to principal shall nol extend or
<br />postpone the due date ofthe monthly payments referred 10 in paragraphs I and 2 or change the amount of the payments If
<br />under paragraph 19 the Properly IS acquired by lender, Borro~'er's right to any insurance policies and procecch rcsullmg
<br />from damage to the Property pnor to the acqulsllion shall pass 10 Lender 10 the eXlent oflhe sums secured by thIS Sccurny
<br />Instrument immediately pnor 10 Ihe acqUIsition,
<br />6, Prelenation and Maintenance of Propert)': Leasebolds. Borrower shall nOI destroy. damage or subslallllally
<br />change the Propeny, allow the Properl)' to delenonrte or commit waste, If thIS Se.:urity Instrument IS on a leasehold.
<br />Borrower shall comply with the proviSIons oflhe lease, and if Borrower acquires fee IlIle to the Property, the leasehold and
<br />fee title shall not merge unless l.ender agrees to Ihe merger in wriling.
<br />7. Protedicm of Lender'. Riahh In tht' Property: ~,fortpae Insurance, If Borrower falls lcl perform the
<br />covenants and agreements contained in this Seeurit) Instrumenl. or there! is a legal proceedmg Ihat may ,igmlkanll~ affecl
<br />Lender's riahts in the Property (such as a proceeding in bankruptC)', probate. for condemnallon (If to enforce laws or
<br />rqublliom), then Lender may do and pay for whate\'er is necC!\.'i3ry to prolecllhe value of the Propert~' llnd lender's rlllhts
<br />in the Property, Lender's actions may' include paying any sums secured hy a hen whICh has prlllril~ ,1\'cr Ih.. Securlly
<br />Instrument, appearing in COlin, paying reasonable attorneys' fees and enlerlllg onlhc Properly ll' maloe rCI':IITS Allhough
<br />lender mIlY take action under this paragl'llph 7. Lender does nol have to do so
<br />Any amounts did>uncd by Lender under Ihl~ parll(traph 7 shall become add1l1l1nal de:-t,1 "f Bllrmwer 'el'ured by 11",
<br />Security lnMrumcntllllless Borrower and lender agre:-e:- to olher lemls ofl'aymcnl. rhcse amnunts ,hllll hear IIlleresl fn,",
<br />the date of di'lo"unemcnt al the Note:- rale:- and \hall he payahle, \\nh InICICsl. upon nollec from lender I" BOtrl'''l'r
<br />rC'<\lIC'Stinll paymenl
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