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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 88- 104048
<br />I, Payment of Prlnclplll and Interest; Prepayment and Late Charllcs. Borrower shall promptly pay when due
<br />the principal cf and intereSt on the debt evidenced by Ihe Note and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or 10 a wrillen wai ver by Lender. Borrowcr shall pay
<br />10 Lender on the day monthly payments are due under the NOle. until the Note is paid in full, a sum ("Funds") equal 10
<br />one-twelftb of: (a) yearly taxes and assessments which may altain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (cl yearly hazard insurance premiums; and (d) )'curly
<br />mortgage insurance premiums, ifany. These items are called "escrow items." Lender may estimate the Funds due on tbe
<br />basis of current data and reasonable estimates offuture escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a federal or
<br />state agency (including Lender if Lender ill such an institution), Lender shall apply the Funds to pay ihe escrow items.
<br />Lender may not charge for holding and applying tbe 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 Ihal interest sball be paid on tbe 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 />sball give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to tbe Funds and tbe
<br />purpose for which each debit to tbe Funds was made. The Funds are pledged as additional security for the sums secured by
<br />tbis Security Instrument.
<br />If the amount of the Funds held by Lender, together with the fulure monthly payments of Funds payable prior to
<br />tbe due dates of the escrow items, shall exceed the amounl required to pay the escrow items when due, the e.~cess shall be,
<br />at Borrower's oplion, eilher promptly repaid to Borrower or credited 10 Borrower on monthly paymenls of Funds. If the
<br />amounl of the Funds held by Lender is not sufficient 10 pay Lhe eserow items when due, Borrower shall pay Lo Lender any
<br />amoun! necessary to make up rhe deficiency in one or more payments as required by Lender,
<br />Upon payment in full of all sums secured by this Securily Instrument, Lender shall promplly 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 immedialely prior to the sale of Ihe Property or its acquisilion by Lender, any Funds held by Lender allhe time of
<br />appliClltion as a credit against Ihe sums secured by Ihis Security Inslrumenl,
<br />J. Application of Payments, Unless applicable law provides olherwlse, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: fir-ii, to late charges due under the Note: second, to prepayment charges due under the
<br />Note; third, 10 amounls payable under paragraph 2; fourth, 10 interest due; and last. Lo principal due,
<br />4. Charllft; Ueos. Borrower sball pay alllaxes. assessments, charges, fines and impositions allributab]e 10 Ihe
<br />Property which may allain priority over tbis Security Inslrumen!, and leasehold paymenls or ground rents, if any,
<br />Borrower shall pay these obligations in the manner provided in paragraph ~, or if not paid m Ihal manner. Borrower shall
<br />pay Ihem on lime direclly to the person owed payment. Borrower shall promptly furnish 10 Lender all nOlices of amounts
<br />to be paid under Ihis paragraph, If Borrower makes the..e pa)'ments direclly, Borrower shall promplly furnish to Lender
<br />receipts evidencing the paymenls.
<br />Borrower shall promptly discharge any lien whil;h bas pnonly over IhlS Securuy Instrumenl unless Borrower: (a)
<br />agrees in wriling to Ihe payment of the obligalion secured by the hen in a manner acceptable 10 Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of Ihe 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 Ihe Property; or (c) secures from the holder of the lien an
<br />agreement salisfaclOry to Lender subordinaling the lien to tbis Security Instrument. If Lender del ermines that any part of
<br />the Property is subJCCt to a lien which may allain priorilY over tbls Security Instrument, Lender may give Borrower a
<br />notice identifying the lien, Borrower shall satisfy the lien or take one or more of Ihe actions sel forth above within 10 days
<br />of Ihe giving of notice.
<br />5. Hazard InslII'IIDce. Borrower shall kee:p I~e improvements now eXisting or hcrc-dfter erected on the Property
<br />insured againslloss by fire, hazards included within the term "extended coverage" and any olher 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 pro'/iding the insurance shall be chosen by Borrower subjecl 10 Lender's approval which sball not be
<br />unreasonably withheld,
<br />All insurance policies and renewals shall be acceptable to Lender and shall mclude a standard mortgage clause.
<br />Lender shall have the right to hold Ihe policies and renewals, If Lender requires, Borro~'er shall promptly give 10 Lender
<br />all recc:ipts of paid premiums and renewal notices. In the eventllf loss. Borrower shall give prompt notice 10 the insurance
<br />carrier and Lender, Lender may make proof ofloss if nOI made promplly by Borrower.
<br />Unless Lender and Bormwer otherwise agree in wriling, insurance proceeds shall be applied to restoration or repair
<br />of the Properly damaged. if the restoralion or repair is economically feasible and Lender's security is not lessened. If Ihe
<br />resloration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied 10 Ibe sums secured by this Security Inslrument. whetber or nOL then due, wilh any excess paid to Borrower, If
<br />Borrower abandons Ihe Property, or does not answer within 30 days a notice from Lender Ihat the insurance carrier bas
<br />oft'erect to senle 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 Inslrument, whelhCT 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 applkation of proceeds 10 principal shall not extend or
<br />po!ltpone Ihe due date of the monlhly paymellls referred to in paragraphs I and 2 or change tbe amount of the payments, If
<br />under paragraph 19 Ihe Property is acquired by Lender, Borrower's rigbl 10 any insurance policies and proceeds re,ulling
<br />from damage to the Properly prior 10 Ihe acquisition shall pass to Lender 10 the extent of the sums secured hy 1 his SCCUrl!)
<br />Inslrument immediately prior to the acquisition,
<br />, 6. Preaenatlon and Maintenance or Property; Leaseholds. Borrower shall not destroy, damage or substanllally
<br />change the Property, allow Ihe Property to deteriorale or commit wasle. If this S~'Curity Instrument is on a leasehold.
<br />Borrower shall comply wilh the provisions of the lease, and if Borrower acquires fee tille to the Property. the lea,ehold and
<br />fee: title shall no! merge unless Lender agrees 10 the merger in wnlinll.
<br />7. Protection of l.ender's Rights In the Property'; MortpllI! Insurance. If Borro",c! fatls III perform lhc
<br />covenants and agreements contained in this Securit)' Instrument, or there is a legal proceeding thai ma) 'lltrtlficantJ) atT~'C1
<br />Lender's rights in the Property (sucb as a proceeding In hankruptcy, probate, for condemnallon llr '0 enfor<'c la..., or
<br />rqulations), then Lender may do and pay for whalever is necessary to prolecllhe value orthe Properly and Lender's ntzhls
<br />in the Property. Lender's actions may include payinllany SUlllS secured by a lien which h", pnorl!y over ,IllS SecurilY
<br />InMrumenl. arrearing in court, pIIying reasonable allomeys' fees and enlerinll on Ihe Properly 10 make rcpm.... Alth"Ulth
<br />Lender may take aclion under this paragraph 1. Lender does nol have to do so,
<br />Any amounts disbunc:d b)' Lender under Ihi. paragraph 7 shall become addnional dehl or lIorro",er secured by 11m
<br />Securily Instrumenl, Unlas Borrower and Lender agree 10 other lerms (,I' paymenr. Ihese anlllUIl" shall bear InlerC"L from
<br />the date or dlsbun;emenl al the NOle ralc and d;llll he payable, ",lIh inler"sr. upon ",'I,,'c from lcnder h' Horn"'cr
<br />l'fqUC1oIl/llt paymenl
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