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<br />88_104163
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<br />UNIFORM COVENANTS. Borrower and Lender coven.ant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by Ihe Note and any prepayment and late charges due under Ihe Note.
<br />.,a. Funds for Taxes and Insurance. Subject to applicable law or to 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 InstruJTIent; (b) yearly
<br />leasehold payments or ground rents on the Property, 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 />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow ilems.
<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 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 of the 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 6fFunds 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 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. 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 />Note; third, to amounts payable under paragraph 2; fourth, to inlerest due; and ]asl, to principal due.
<br />. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions anributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold paymenls or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or ifnol paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this 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 writing to the payment of the 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 to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory 10 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 identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />5. Hazard Imiuranee. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, 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 />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 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 Ihe
<br />restoration 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 this Security Instrument. whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender thai lhe 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 nOI then due. The 30-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower olherwise agree in writing, any application ofprocceds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph t9 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 tethe extenl of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; L.easeholds, Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to delt:rioratc or commil wasle. If thIS Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquires fee title lO the ProperlY, the leasehold and
<br />fee title shall not ml'rge unless Lender agrees to lhe merger in wriling.
<br />7. Protection of Lender's Rlllhts in the Property; Mortgalle Insurance, If Borrower fails to perform the
<br />covenants and agreements conlained in Ihis Security Instrument, or there is a legal proceeding Ihat nHlY slgmtlcantly affect
<br />Lender's rights in Ihe Property (such as a proceeding in bankruptcy. pmbatc, for ('ondemnation or to enforee Inws ,'r
<br />regulations), then Lender may do and pay for whalever is necessary to pmleet the vlllue "fthe I)roperty and l.ender', ri!1hts
<br />in the Property. Lender', aClions may include paymg any sums secured by II lien which ha, priority over tins SeeurH~
<br />Inslrument. appearing In court, paying rellsonable II1Iorneys' fees and entering nn the Property tnmake rCpalN Althou!lh
<br />Lender may take action under Ihi, paragraph 7. l.ender does nol havc to do so.
<br />Any olnoun!., disbvrsed by l.cnder under tillS parllllrnph 7 shall become addllional deht of Born,wl'r secUH'd b~ th"
<br />Security Instrumenl. Unlos norrower llnd l.ender a!lree 10 ,dll:r terms of payment, thcse anwlInls shall hellr mlert'st from
<br />the date of di.sbursernent at the Note ml,' and shall he paYllble, wlIh Inlercs!. upon nOll,'e from t.,'ndcr II' Born"'l'!
<br />requesllllll paymenl
<br />If Lender rt''1ulled Il1nrtl\lllle 1I1MII,,,,,'e '" II condlllon of making the loall secured hy thIS Sl...'Unly IIISHUtIlCII!.
<br />norruwcr shullI'll) Ihe I'rculIUm\ rcqulrc,l 10 lIIllllllalfl the Illsurnllce III efl'cl'! unlll 'ueh 11Il.," as ,h," rcquln'Il1l'''' ",' tIll'
<br />IInUral1U' Irrrnlnatcllo In fitL'nrdnru:t' "Ith Itnf rfl\~;rr'.. und I ,('(ukr', \\TII1(,1l1lgrc.~t"ment .'f npplh:nhll" hl\\
<br />. H. Inspection. Lt'lulcr I1r 1h i1~cI11 mil) rtIukt' rC'f1'onuhlt~ en1r1t"' upon and lIl'l"l.l'l\~n' .,t' tlw Plnpl,.'II\ Il'l1lkr
<br />"hull jtl~ r Borrllw,..r IIllth.f a1 the.' tu,H.' of Of pftor to UII Ifl'J~c.:1I0f1 "'p(,f..'lhm~ n..~\pnuhl(' rllll\l' IlU Ilw 11\\11('\.1'1'11
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