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<br />88-104205
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<br />UNtFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I. Paymeat 01 Priaclpal ami laterest; PteJlllymeat IIJId Late Charges. Borrower shall promplly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and lale charges due under the Note.
<br />2. Funds lor Taxa lUId luarance. 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 10
<br />one-twelfth of: (a) yearly taxes and assessments which may allain priority over this Security Instrumenl; (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, ifany. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of curren I data and reasonable estimates offuture escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranleed 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 nOI charge for holding and applying the Funds, analyzing Ihe account or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permilS Lender to make such a charge. Borrower and
<br />Lender may agree in writing thai interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />re..1uires interest to be paid, Lender shall nOI be required to pay Borrower any interesl or earnings on the Funds. Lender
<br />shall give to Borrower, without charge. an annual accounting of the Funds showing credits and debits 10 Ihe Funds and Ihe
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional securily for the sums secured by
<br />this Security Instrument.
<br />If the amounl of Ihe Funds held by Lender, logether with the future monthly paymenls of Funds payable prior 10
<br />the due dales oflhe escrow items, shall ellceed Ihe amount required to pay Ihe escrow ilems when due, the excess shall be,
<br />at Borrower's option, either promptly repaid 10 Borrower or credited to Borrower on monthly payments of Funds. If the
<br />arnounl oflhe Funds held by Lender is nOI sufficienllo pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary 10 make up Ihe deficiency in one or more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Securily Inslrumenl, Lender shall promplly refund 10 Borrower
<br />any Funds held by Lender. Ifunder paragraph 19 Ihe Property IS sold or acquired by Lender, Lendcr shall apply. no later
<br />than immediately prior 10 Ih~ sale of the Properly or Its acquisition by Lender, any Funds held by lender al the lime of
<br />application as a credil 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] and 2 shall be applied: first. to lale charges due under Ihe Note; second, 10 prepaymenl charges due under the
<br />NOle; third, 10 amounts payable under paragraph 2; fourlh, 10 interest due; and lasl, to principal due.
<br />4, Charges; Liens. Borrower shall pay all lalles. assessmenlS, charges, fines and impositions altribulable 10 the
<br />Property which may altain priorily over th.. Security Instrumen!, and leasehold payments or ground renls. if any.
<br />Borrower shall pay thesc obligallons In 1 he manner proVided In paragraph 2. or if not paid in t hat manner, Borrower shall
<br />pay them on time direclly 10 the person owed paymenl. Borrower shall promptly furnish 10 lender allnollces of amoun!s
<br />to be paid under this paragraph. If Borrower makes these payments direclly. Borrower shall promptly furnish 10 Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any hen which has priority over Ihis Security Inslrumenl unless Borrower: (a)
<br />agrees in wriling 10 the payment oflhe obhgallon secured by [he hen in a manner acceplable to Lender; (b) contests in good
<br />failh the lien by, or defends agamsl enforcemenl of the hen in, legal proceedings which in Ihe lender's opinion operale 10
<br />prevent Ihe enforcement of Ihe hen or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfaclory 10 lender subordinating the: lien 1011\15 Security Inslrumenl. If lender del ermines that any pan of
<br />the Property is subjecl to a hen which may anam pnorny over Ihis Security InSlrUmenl, Lender may give Borrower a
<br />notice identifying Ihe hen. Borrower shall satisfy Ihe hen or take one or more of the: actions sel fonh above within 10 days
<br />of the giving of notice.
<br />5. Hazard InlUrance. Borrower shall keep Ihe improvements now ellisting or hereafter erected on the Property
<br />insured against loss by fire, hazards Included wilhm Ihe lerm "eJllended coverage" and any 01 her hazards for which Lender
<br />requires insurance. This IIlsurance shall be mainlain~-d in Ihe: amounts and for Ihe periods Ihal Lender requires. The
<br />insurance carner provldlllg the insurance shall be chosen by Borrower subjecl 10 Lender's approval which shall not be
<br />unreasonably wilhhcld.
<br />All insurance poliCies and renewals shall be acceplable 10 lender and shalllllclude a slandard mongage clause.
<br />Lender shall have the nghl 10 hold the policies and renewals. If lender requires, Borrower shall promptly give 10 Lender
<br />all receipts of paid premiums and renewal nolices. In Ihe even I of loss, Borrower shall give prom pi notice to the insurance
<br />carrier and lender. lender may make proof of loss If nOI made promplly by Borrower.
<br />Unless Lender and Borrower otherwise agree In writing, insurance proceeds shall be applied to resloration or rep..ir
<br />of Ihe Properly damaged, if Ihe reslOraltOn or repair is economically feasible and Lender's security' is not lessened. If Ihe
<br />resloralion or repair is not economically feasible or lender's security would be lessened, Ihe insurance proceeds shall be
<br />applied 10 the sums !>Ccured by this Securily Instrumenl, whelher or nollhen due, wilh any excess paid to Borrower. If
<br />Borrower abandons the Property, or does nOI answer within 30 days a notice from lender thallhe insurance carrier has
<br />oll'ered to scnle a claim. then Lender may collectlhe msurance proceeds. Lender may use the proceeds 10 repair or reslore
<br />the Properly or 10 pay sums secured by Ihis Security Inslrumenl, whelher or not then due. The 30.day period Will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree In wriling. any application of proceeds 10 principal shall not extend or
<br />poslpone the due date of the monthly paymenls referred 10 in paragraphs I and 2 or change the amount oflhe pa~'menls. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right 10 any insurance policies and proceeds rc:sulllng
<br />from damage to Ihe Property prior 10 Ihe acquisition shall pass to lender 10 the elltenl oflhe sums secured lly IhlS Secunly
<br />Instrument immediately prior 10 the acqUisition.
<br />6. Praen-ation and Maintenance of Property; Leueholds. Borrower shall not destroy. damage or sullslanllally'
<br />change Ihe Properly, allow Ihe Property to deteriorale or commit wasle. If thiS Securily Instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquires fee tllle to the Properly. the leasehold and
<br />fee lide shall nOI merge unless lender agrees 10 Ihe merger in writing.
<br />7. Prl>tectlon of Lender'l Rlahts In the Property; MortKalle Insursnce. If Borrower fUlls to perfornl the:
<br />covenants and agreements contained in Ihis Secunty Inslrumenl. or there IS a legal proceeding thallllay s.l!OIficunlly afTect
<br />Lender's rights in Ih" Property (such as a proceeding in bankruplcy, probate, for condemnalion or tl> enforce 10.....' '"
<br />regulations), Ihen Lender may do and pay for whotever is necessary to protecllhe value oflhe Properly and Lender', nghls
<br />m Ihe Properly. Lender's actions may mclude paying any sums secnred by a lien wlllch has pnotit~ over II1IS Sccunl}
<br />Instrumenl, appearing III court. paying reasonable allorneys' fees and enlering on the I'roperly to make rep:ur, Althou!lh
<br />Lender may lake aCllon under Ih.. paragraph 7. Lender docs not ho\'c to do so.
<br />Any amOllnls disbursed hy Lender under Ihis paragraph 7 shall become additional dell I of Bom,wer ,ecurl'd hy Ihl'
<br />Securlly InslrUmeni. Unless Borrower and Lender agree to olher lerlm of payment. Ihesl' amounh \hall hem 1I1Iel.....1 frnm
<br />Ihe date of dishursement at Ihe Note rale and shall be: payable. With IIItereS!. upnll nOli,.,. fmrn .,'nder 10' Il,'rn',,"er
<br />rcqueslmg paymenl.
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