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<br />88- 103954
<br />UNIFORM COVENAN'. S, Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal anti Interest; Prepayment and Late Ch&rges. Borrower shall promptly pay when due
<br />the principal of and interest on Ihe debl evidenced by the Note and any prepayment and late charges due under the Note,
<br />2. Funds for Taxes aDd Insurance. Subject to applicable law or to a wrillen 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.lwelfth of: (a) yearly taxes and assessments which may attain priorily over this Security Inslrument; (b) yearly
<br />leasehold payments or ground rents on Ihe Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums. ifany, These items are called "e;;crow items." Lender may estimate Ihe Funds due on the
<br />basis of current dala 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 inslitution). Lender 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 law permits Lender 10 make such a charge, Borrower and
<br />Lender may agree in writing thaI interest 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 10 the Funds and Ihe
<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 amounl 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 ilems when due, Ihe 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 nOI sufficient to pay the escrow items when due, Borrower shall pay 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, Lender shall apply. no later
<br />than immediately prior to Ihe sale of the Property or ils acquisition by Lender, any Funds held by Lender at Ihe time of
<br />application as a credil against Ihe 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 />NOIe; third, 10 amounts payable under paragraph 2; fourth, to interest due; and last, to principal due,
<br />4. Charges; Uens. Borrower shall pay all taxes, assessments, charges, lines and impositions allributable to the
<br />Property which may attain priority over Ihis Securily Inslrument, and leasehold payments or ground rents. if any,
<br />Borrower shall pay Ihese 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 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 shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in wriling to the payment oftbe 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 10
<br />prevent the enforcement of Ihe lien or forfeilure of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating Ihe lien to Ihis Security Instrument. If Lender determines that any part of
<br />the Property is subjecl to a lien which may attain priority over this Securily Inslrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or lake one or more of the aClions set forlh above within 10 days
<br />of the giving of notice.
<br />S. Hazard InsurBllce. Borrower shall keep Ihe improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included wilhin the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for Ihe periods thaI Lender requires, The
<br />insurance carrier providiug the insurance shall be chosen by Borrower subject to Lender's approval which shall nol 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 10 Lender
<br />all receipls of paid premiums and renewal notices, In the event of loss. Borrower shall give prompt nOlice to the insurance
<br />carrier and Lender. Lender may make proof ofloss if not made promptly by Borrower.
<br />Unless Lender and Borrower 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 feasible and Lender's security is not lessened, If the
<br />resloration 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 Ihis Security Instrument, whelher or nol then due, wilh any excess paid to Borrower, If
<br />Borrower abandons the Properly. or does nOI answer within 30 days a notice from Lender that the insurance carrier has
<br />olfered to settle a claim. then Lender may collect the insurance proceeds, Lender may use the proceeds 10 repair or restore
<br />Ihe Property or 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 application of proceeds to principal shall nol extend or
<br />postpone Ihe due dale of the 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 to Lender to the extenl of the sums secured by this Security
<br />Instrument immediately prior to the acquisition,
<br />6. Presenation and Maintenance or Property; Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Property, allow the Property 10 deteriorate or commil wasle, If this Security Instrument is on a leasehold.
<br />Borrower shall comply with Ihe provisions of the lease. and if Borrower acquires fee title 10 Ihe Property, the leasehold and
<br />fee lille shall nol merge unless Lender agrees 10 the merger in writing,
<br />7. Protection or Lender's Rights in the Property; MortJlllge Insurance. If Borrower fails to perform the
<br />covenanls and agreements contained in this Security Instrument, or I here is a legal proceeding that may significantly a!fL'Ct
<br />Lender's righls in the Property (such as a proceeding in bankruptcy. probate, for condemnation or to enforce laws or
<br />reguhltions). then Lender may do and pay for whalever is necessary to protectlhe value of the Property and Lender's righlS
<br />in Ihe Property. Lender's actions may include paying any sums s..'Cured by a lien whIch has priority over this Securtty
<br />Inslrument, appearing in court, paying reasonable allomey's' fees and entering on the Property ll' make repairs Although
<br />Lender may take aclion under this paragraph 7. Lender doe; nol have to do so,
<br />Any amounts disbursed by Lender under this paragraph 7 shall become addlti.;,"..1 debt of Borrower securL-d by thIS
<br />. Security Instrumenl, Unl"" Borrower and Lender agree to other terms of paymtnt: jli~ ..mounts shall bear mtcr",t from
<br />the dale of disbu~ent at Ihe NOle rate and shall be payable, with inlerest. upon notice from Lender ,,, Rorr""er
<br />requesting payment.
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