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<br />UNIfORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I. Pa,.ent of Prladpal aad IDtereIt; Prepayment aa.i L::t" ChUllft. 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. FundI for TUell and IDUllIIIce. 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.twdfth of: (a) yearly wes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasebold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums;, and (d) yearly
<br />mon..,e insurance premiums, if any. These items are called "escrow items," Lender may estimate the Funds due on the
<br />basis of c:urretlt data and reuonable 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 />mte qency (including Lender if Lender is such an institution), Lender shall apply the Funds to pay the escrow items,
<br />Lender may not charge for holdillJ and applying the Funds, analyzing the account or verifying the escrow items. unless
<br />Lender pays Borrower interest on the Funds and applicable law pennits Lender to make such a charge. Borrower and
<br />l.cndcI' m!lY apee in writing that interut shaJ\ be paid on the Fundll, Unless an agreement 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 />ahaJJ live to Borrower. without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />plII'JlCIR 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 hdd by Lender, tOllether with the future monthly payments c.i 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 hdd by Lender is not su16cient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necasary 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, [f under paragraph 19 the propeny is sold or acquired by Lender, Lender shall apply, no later
<br />than immediate1y 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 apinstthe sums secured by this Security Instrument,
<br />3. A..,aJcallOD of Par-II. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: fint, to late charges due under the Note; second, to prepaymmt charges due under the
<br />Note; third, to amounts payable under paragraph 2; founh. to interest due; and last, to principal due,
<br /><t. CIuwIs; JJ-.. Borrower shall pay aU lUes, assessments, charges, lines and impositions attributable to the
<br />Property which may atlain priority over tbiI Security Instrument. and leasehold paymenis or ground rents, if any.
<br />Borrower IhaiJ pay tbae obliptions in the lIWUIer provided in paragraph 2. or if not paid in that manner. Borrower shaJ\
<br />pay them on 'ime directly to the penon owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under tbiI 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 />Bp'CCS in writing to the payment ofth.!: obliption secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the 1ien by. or defends apinst enfon:ement of the lien in. 1ep1 proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any pan of the Propeny; or (c) secures from the holder of the lien an
<br />.,,--nent ulisfactory to Lender subordinatin.the lim to this Security Instrument. If Lender determines thatllRY pan of
<br />the Property is subject to a 1ien which may attain priority over this Security Instrument. Lender may aive Borrower a
<br />notice ideDtifyillJ the lien. Borrower shall satisfy the lien or take one or more of the actions set fonh above within I 0 da~
<br />of the livina of DOlice.
<br />5. Ha.tI ~ Borrower shall keep the improvements now existin. or hereafter erected on the Propeny
<br />insured apinst loa by fire, hazards inc:luded within the term "eJ.tended coverage" and any other hazards for wbich Lender
<br />rtqWres insurance. This insurance shall be maintained in the amQunts and for the periods that Lender rtquires, The
<br />insurance carrier providm. the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />UIII'I!UOOably withheld.
<br />All insurance policies and renewals shalJ be aa:cptable to Lender and shall include a standard mortpge clause,
<br />Lender shalJ have the ri&ht to hold the policies and renewalL If Lender rtquires. Borrower shall promptly aive to Lender
<br />aU rea:ipts ol paid premiums and renewal notices. In the f"mt of loss. Borrower shall aive prompt notice to the insurancemcanicrand lender. I.endermay make proofoflcss if not made promptly by Borrower,
<br />Unless Lender and Borrower otherwile aaree in writina. insurance proceeds sball be applied to restoration or repair
<br />ol the Property datnaplI. if the restoration or repair is economically feasible and Lender's MX:urity is not lessened, If the
<br />resl.OI'atioa or repair is not economicaUy feasible or Lender's security would be lessened, the insurance proc:eed5 shall be
<br />applied to the sums secured by tbiI Security IDSlI1IIIIent. whether or not then due, with any excess paid to Borrower, If
<br />Borrower abaDdona the Property, or does not answer within 30 da~ a nOlice from Lender that the insutance carrier has
<br />oIfered to settJc a c\aim, then Lender may collect the insurance proceeds, Lender may use the p~ to repair or restore
<br />the Propeny or to pay sums secured by this Security IDSlI1IIIIent. whether or nor then due, The JO.day period will begin
<br />when the notice is liven.
<br />Unless Lender and Borrower otherwise aaree in writina, any application of proceeds 10 principal shall not extend or
<br />postpone the due date of the monthly payments referred to in parasraphs I and 2 or change the amount of Ihe paymmts. If
<br />under paragraph 19 the Property is acquired by Lender. Borrower's righl to any insurance policies and proceeds resulting
<br />from damqe to the Property prior to the acquisition shall pass to Lender 10 the exlenl of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. P1_ .atkIa'" MaImauce ofPrellerJr; lUII~ uWl. Borrower shall no! destroy, damqe or substantially
<br />c:baD&e the Property. allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />BorrowersbaI1 comply with the provisions of the Iease. and if Borrower acqUIres fee title to the Property. the leasehold and
<br />fee title sbaI1 DOl merp: unless Lender apees to the merger in writing.
<br />7. ...~.... LeMer'a IIiPIIl. the Pro,Ierty: MlII'IP8e I_aruce. If Borrower fails 10 perform the
<br />covenants and qreemenlS contained in this Security Instrument. or there is a lepJ proceedin.thal may signilicantly all"eet
<br />Lender's ri&hlS in the Property (such as a proceedilll in bankruptcy, probale, for condemnation or to enforce laws or
<br /><qu\ations), then Lender may do and ~y for whatever is necessary to protcclthe value oCthe Property and Lender's rilhlS
<br />in lhe Property, Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument. ~ in court, payina reasonable attorneys' fees and entering on the Propeny 10 make repairs. Although
<br />Lender may take action under this paragraph 7. Lender does not have to do so,
<br />Any amounts disbuned by Lender under this para&raph 7 shall become additional debt of Borrower secured by this
<br />Secunty Inslrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall hur interesl from
<br />the date of disbursemenl al the Note rale and shall be payable, "',lh Interest, upon nolla: from Lender 10 Borrower
<br />rtquestin& ~yment,
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<br />88-103958
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