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<br />88-104177
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<br />UNIFORM COVENANTS Borrower and Lendercoveriant and agree as follows:
<br />I, 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 the Note and any prepayment and late charges due under the Note.
<br />2, Funds fOf Taxes and Insufance. 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 Instrument; (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 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 to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreemenl is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on lhe 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 of 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 held by Lender is not sufficient to pay the escrow ilems 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 paymenl in full of all sums secured by lhis Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. Ifunder 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 acquisilion by Lender, any Funds held by Lender al 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 interest due; and last. to principal due.
<br />4, Charges; Liens. Borrower shall pay all taxes, assessments. charges, fines and impositions attribulable to the
<br />Property 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 ifnot paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promplly 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 Instrumenl unless Borrower: (a)
<br />agrees in writing to the payment of the obligalion secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith thc 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 forfeilure of any part of Ihe Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory 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 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 />S. Hazard Insurance. Borrower shall keep lhe improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within lhe 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 10 Lender and shall include a standard mortgagc clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requircs. Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In lhe event of loss, Borrower shall give prompt notice 10 the insurance
<br />carrier and Lender. Lender may make proof:Jf loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoralion 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 />restoration or repair is nOI economically feasible or Lender's security would be lessened. the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whelher 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 that the insurance carrier has
<br />offered to sellle 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 Securily Instrument. whether or nOI 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 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 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to lhe Properly prior 10 the acquisition shall pass to Lender to Ihe extent of the sums secured by this Security
<br />Instrument immediately prior 10 the acquisition.
<br />6. Preservation and Maintenance of Property; Leasehotds. Borrower shall not destroy. damage or substanlially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if BorTOwer acquires ree title to the Property, the leasehold and
<br />fee tille shall not merge t:nless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails 10 perform the
<br />covenants and agreements contained inlhis Security Instrument, or there is ulegal proceeding lhat muy significantly affect
<br />Lender's righls in the Property (such as a proceeding in bankruptcy. probate. for condelllna1ion or to enforce laws nr
<br />regulations), then Lender may do and pay for whatever is necessary 10 protect the value orthe Property and Lender\ righls
<br />in the Property. Lender's actions mllY include paying any sums secured by a lien which hus pnorlly mer tlm Securlly
<br />Instrument, appearing in court. paying reusonuble al1orneys' fees und entering on lhe I'ropert~. to rnukc repalf\. Although
<br />Lender may take action under this paragraph 7. Lender does nol have to do so.
<br />Any amounts disburse[l by Lender under this paragraph 7 shall become ud(II"Ollul debt "I' nOrnl\\l'f secured o~ tillS
<br />Security Instrument. Unless Borrower and Lender ugree to olher terms "I' payment. the\C IlnlllUnls ,hull Ol'llllllll'H'sl I'rorn
<br />Ihe date or disbursement at the Note rate and shall be payaole, w,th IIllere,t. upon 1I0I,,'l' frolll I ,'nder h' llon"\\lT
<br />requesting payment
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