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<br />88-104020
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<br />UNIFORM CoVENANTS. Borrower and Lender covenant and agree as follows: ~__
<br />I. Pa)'lllent of PriadpallUld Interest; Prepayment and Late ChIlU'Jlell. Borrower shall promptl~ 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 />2. Funds for Taxes and IDnrance. Subject to applicable law or 10 a written 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 Propeny, 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 />stale agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account ur 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 />Lender may agree in writing that interest shall be paid on the Funds. 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 />shall give to Borrower, without charge, an annual accounting ofthe '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 tbe 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 tbe Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to 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 the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. AppUcatioa of Paymeala. 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 />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. CIaaraes; Ueu. Borrower shall pay all lalles, assessments, charges, lines and impositions attributable to the
<br />Propeny which may attain 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 2, or if not paid in that manner, Borrower shall
<br />pay tbem on time dircctly to the penon owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this parqraph. 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 />qrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faitb the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent tbe enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactoJy to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifyina the lien, Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of tbe givins of notice,
<br />5. Huard 1Muraaee. Borrower shall keep the improvements 1I0W existing or hereafter erected on the Property
<br />insured against loss by lire, hazards included within the term "extended 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 />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreucmably withheld.
<br />All inJurance 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 to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss 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 />resr.ontion or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to tbe sums secured by this Security Instrument, whether or not then due, with any excess paid to Borro....er. If
<br />Borrower abandons the Property, or does 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 to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. The 3O-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 nOI extend or
<br />postpone the due date of tbe monthly payments referred to in paragraphs] and 2 or change the amount ofthe payments. If
<br />under paragraph 19 tbe Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damqe to the Property prior to tbe acquisition shall pass to Lender to the extent of the sums secured by this SecurilY
<br />Instrument immediately prior to tbe acquisition.
<br />6. Preaenatioa and MalIItCDaDCe of Prosaer1r. LeaeIIoldL Borrower shall nol deslroy. damage or substantially
<br />change the Property. allow the Property to deteriorate or commit waste, If this Securily Instrumenl is on a leasehold.
<br />Borrower shall comply with the provisions ofthe lease, and if Borrower acquires fee title to Ihe Property. the leasehold and
<br />fee title ahall not merge unless Lender Blree& to the mergei' in writing.
<br />7. ProtectIo..1 of u.der'. RJpIa In tile 1"ropenJ; Mortp&e I_ranee. If Borrower fails to perform the
<br />covenants and qrecmenll contained in this Security Instrument. or there is a legal proceeding thai may significantly all'ecl
<br />Lmder's ripta in the Property (such as a proceeding in bankruplcy, probate, for condemnation or 10 enforce laws or
<br />rqulations). then Lender may do and pay for whatever is necessary to proleclthe value ofthe Propeny and Lender's rights
<br />in the Propcny. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearinl in WIIrt, payinS reatonable attorneys' fees and entering on the Property to make repairs, Allhough
<br />Lender may take action under this paral"aph 7. Lender does nOI have to do so,
<br />Any amounts dilbuned by Lender under this paragraph 7 shall become additional debt of Borrower secured by Ihls
<br />Security Instrument. Unlea Borrow~r and Lender agree to other terms of pB}'menl. these amounts shall hear IIIterest from
<br />the date of disbursemenl at the Note rate and shall be payable. with IIIlerest. upon nollce from Lender 10 Borrower
<br />requeatinl paymerlt,
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