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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agre~ as follow"
<br />1. Payment 01 Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />Ihe principal of and interest on the debl evidenced by the Note and any prepayment and lale charges due under the Note,
<br />Z. Funds for Taxes and Insurance. Subject to applicable law or to a wriuen waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, umilthe Note is paid in full, a sum ("Funds") equal 10
<br />one.twelfth of: (a) yearly taxes and assessments which may auain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on Ihe Property. if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mongage insurance premiums, if any, These items are called "escrow items," Lender may estimale 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 1gency (including Lender if Lender is such an institulion), LeJ>der 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 (r,w permits Lender to make such a charge, Borrower and
<br />Lender may agree in writing that interest shall be paid on th,~ Funds, Unless an agreement is made or applicable law
<br />requires interest to be paid. Lender shall not be required to pa} Borrower any interest or earnings on Ihe Funds, Lender
<br />shall give to Borrower, without charge. an annual accounting of Ihe Funds showing credits and debits to the Funds and the
<br />purpose for which eaeh 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 Ihe amount required to pay the escrow items when due, the excess shall be.
<br />at Borrower's oplion, either promptly repaid to Borrower or crl>dited 10 Borrower on monthly payments of Funds, If the
<br />amount of the Funds held by Lender is nol suffieienllO pay the eserow items whert due, Borrower shall pay 10 Lender any
<br />amount necessary to make up the deliciency in one or more payments as required by Lender,
<br />Upon payment in full of all sums secured by this Security Instrument, lender shall promplly refund to Borrower
<br />any Funds held by lender. If under paragraph J9the ProperlY is sold or acquired by lender, lender shall apply, no laler
<br />than immediately prior 10 the sale of the ProperlY or ils acquisition by Lender. any Funds held by Lender allhe time of
<br />application as a credit against the sums secured hy this Security I nsl n.ment.
<br />3, Application 01 Payments. Unless applicable law prOVides olherwlSe, all pllymenls received by Lender under
<br />paragraphs I and 2 shall be applied: lirsl. to lale charges due uoder Ihe NOIe; second, 10 prepaymenl charges due under Ihe
<br />Nole; third. to amounts payable under parllgraph 2; fourth. 10 mlerc.st due; IInd last, to principal due,
<br />4. Chal'1les; Liens, Borrower shall pay alltllxes. aSSL'Ssments, charges, fines and Imposilions 1I11ribulable to the
<br />Property which may al1ain priority over Ihis Security Instrument, and leasehold payments or ground rents, if any,
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or ifnol paId inlhat mllnner, Borrower shall
<br />pay them on titne directly to the person owed payment. Borrower shall promptly furnish 10 Lender allnolices of amounts
<br />to be paid under Ihis paragraph, If Borrower makes these: paymenls directly, Borrower shall promplly furnish to Lender
<br />receipts evidencing the payments,
<br />Borrower shall promptly discharge any lien which has pnor;ly over IhlS SC<.:urlly Instrumenl unless Borrower: (a)
<br />agree!o in writing to Ihe payment of the obligalion secured by Ihe lien m a manner acceplable to Lender; (blcontesls in good
<br />faith the lien by, or defends againsl enforcement of Ihe hen in, legal proceedings which in lhe Lender's opinion operate to
<br />prevent the enforcement of the hen or forfellure of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordmalmg the lien 10 thiS Security Instrument, If Lender delermines thlll any parI of
<br />the Propeny is subjecl to a lien whIch may attam priority over Ihls Secunly Instrument, Lender may give Borrower a
<br />notice identifying the lien, Borrower shull ""Iisfy the hen or lake one or 1lI0re (lfthe aClIons set forth above within 10 days
<br />of the giving of nOlice,
<br />5. Ifazard Insurance, Bormwer shall keep Ihe improvemenls now existing or hereafter erected on the Property
<br />insured against loss by fire. hazards included within the lerm "exlended coverage" and any other hlllards for which lender
<br />requires insurance, This insurance shall be mainlained in the IImounls and for lhe periods that Lender requires, The
<br />msurance carner providing the msurance shall be chosen by Borrower subject to Lender's approval which shall not he
<br />unreasonably withheld,
<br />All insurance policies and renewals shall be accepmble 10 Lender and shallmclude a standard morlgage clause,
<br />Lender shall have the righlto hold the policies and renewals, If Lender requires. Borrower shall promplly gIVe to Lender
<br />all receipts of paid premiums and renewal notices, In the event of loss, Borrower shall give promplnollce 10 the insurance
<br />carrier and Lender, Lender may make proof of loss If nol made promptly hy Borrower,
<br />Unless lender and Borrower otherwise agree in writing, insurance proceeds shall be applied fa restorallonor repair
<br />of Ihe Property damaged. if Ihe restoration or repair is economically feasible and Lender's security is not lessened, If the
<br />resloration or repair is not economically feasible or Lender's ",curity would be lessened, the insurance proceeds shall be
<br />applied to Ihe sums secured by Ihis Security Instrumenl, whelher or not then due. wllh any excess paid to Borrower, If
<br />Borrower abandons the Property, or does not answer wllhin 30 days a nol.ee from Lender that the insurance carrier has
<br />offered to senle a claim, then Lender may colleclthe insurance proceeds, Lender may use the proceeds 10 repair or reslore
<br />the Property or 10 pay sums secured by this Securily Instrument, whether or nol then due, The 30,day period will begin
<br />when lhe notice is given,
<br />Unless lender and Borrower otherwise agree 10 writ mg. any applicalion of proceeds 10 principal shall nOI extend or
<br />postpone the due dale oflhe monlhly payments referred 10 in paragraphs I and 2 or change the amouot of Ihe pay meats, If
<br />under paragraph 19the Property is acquired by Leader, Borrower's right to any insurance policies IInd proceeds resulting
<br />from damage 10 the Property prior to the acqUIsition shall pass to Lender to the extent of the sums secured by IhlS Security
<br />Instrumenl immedialel~ prior 10 the acquisition,
<br />6. Presenatlon and Maintenance of Property; Leaseholds. Borrower shall nllt dest roy, damage or substanlially
<br />change the Property, allow the ProperlY to deteriorate or commil wasle, If thIS SecurllY Instrumenl is on II leasehold,
<br />Borrower shall coml'ly wllh the provisions oflhe lease. and if Borrower acquires fee 1I11e Illlhe ProperlY, thc ICllschold IInd
<br />feo: litle shall nol merge unless Lender agrees 10 Ihe merger in wn:ing,
<br />7. Protection of l.ender'. R1llhts in the Property; Mortll8llt Insurance, If Borrower fa.1s to perform Ihe
<br />covenants and agreements contamed in this Securuy Instrument. or there is a legal proceedmg Ihul mllY siglllficanlly affecI
<br />Lender', rights in the !'roperty (such as a I'roceeding in bankruptcy, probate, for condemnallOn or to enforce laws or
<br />r~gulations),lhen Lender may do and pay for whale\'er is necL'Ssary 10 prolecllhe value oflhe Properly and Lender's TIghts
<br />in the Properly, Lender's aClions mal' IIIclude I'aying any sums secured hy a hen which has pnonlY owr IhlS Security
<br />Instrument, appearing in eoun, paymg reasonahle at"'meys' fees and entenng on the Property 10 make repalTS, Although
<br />Lender may lake aClion under IhlS !,aragraph 7, Lender doc.s not ha\'e 10 do so
<br />Any amounls disbursed hy Lender under Ihis paragraph 7 shall become addlllooill deb I "I' Hnrrnwer secured by Ih"
<br />Security Instrument, Unless Borrower and Lender agrec 10 olher terms of payment. Ih",. amounts ,hall h.::u 1II1erest from
<br />the dale of disbursement at the NOIC rale and shall he payable, wllh mlerest. lIpon o,,"ce rro'lll I.ender I" IlnrTllwer
<br />requ~lml! paymell1,
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<br />88-103940
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