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<br />88- 104426
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1, l'1Iyment of PrIncipal IIDd Interest; Prepayment IIDd 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 for Taxes IIDd ill5lll'allce, Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monih1y 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 />mongage 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 offuture escrow items.
<br />The Funds shal] 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 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 />shaD give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the F'lDds and the
<br />purpose far 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 />[f 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 exc=! the amount required to pay the escrow items wben due, tbe excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on montbly payments of Funds. If tbe
<br />amount of tbe Funds beld by Lender is not sufficient to pay the escrow items wben 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 beld by Lender. [funder paragrapb 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to tbe sale of tbe Propeny or its acquisition by Lender, any Funds beld by Lender at tbe time of
<br />application as a credit againsl the sums secured by tbis Security Instrument.
<br />3. AppUcatloa of l'1IymmlL Unless applicable law provides otberwise, all payments received by Lender under
<br />paragrapbs I and 2 shall be applied: first, 10 late charges due under Ibe Note; second, to prepayment charges due under tbe
<br />Note; tbird, 10 amounts payable under paragrapb 2; fourtb, 10 interest due; and last, to principal due.
<br />4. CIIarpI; LIma. Borrower shaD pay a1llaxes, assessments, charges, fines and impositions attributable 10 the
<br />Property whicb may auain priority. over tbis Security Instrument, and leasebold payments or ground rents, if any.
<br />Borro....er shall pay these obligations in the manner provided in paragrapb 2, or if not paid in that mann~r, Borro....er shaD
<br />pay them on time directly to the person owed paymenl. Borrower shall promptly furnish to Lender all notices of amounts
<br />10 be paid under this paragraph. If Borrower makes tbese payments direct]y, Borrower shall promptly furnish to Lender
<br />receipts evidencing the pa)'lIIetl1S.
<br />Borrower shaD promptly discharge any lien wbich has priority over this Security Inslrument unless Borrower: (8)
<br />agrees in writing to the payment of tbe obligation secured by the lien in a manner acceptable to Lender; (b) conlests in good
<br />failh the lien by, or defends against enforcement of the lien in, legal proceedinp whicb in tbe Lender's opinioo operate 10
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from tbe bolder of tbe lien an
<br />agreement satW"actory to Lender subordinating tbe lien 10 Ibis Security Instrument. [f Lendcr determines tbat any part of
<br />the Property is subject to a lien wbieh may attain priorily over this Security Instrument, Lendcr may give Borrower a
<br />notice identifying the lien. Borrower shall sati&fy the lien or take one or more of the actions set fortb above within 10 days
<br />of the giving oI'notice.
<br />5. HaanI Iuarw.ce. Borrower shall keep tbe improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "Clttended coverage" and any other hazards for wbich Lender
<br />requires insurance. This insurance shall be maintained in the amount. and for tbe periods tbat Lender requires. The
<br />insurance carrier providing the insurance shall be cbosen by Borrower subjecl to Lender's approval whicb shall not be
<br />unreuonably withheld.
<br />All insurMce policies U1d mlcwal$ shall be acceptal1k to Lender and shall include a standard monP8" clause.
<br />Lender shall have the riahtto hold the policies and renewaIi. If Lender requires, Borro....er 5balJ promptly give to Lender
<br />all RlCCipts of paid premiums and renewal notices. [n the event of lass, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may malte proof of]oss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied 10 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 />restoration or repair is not economically feasible or Lender's security would be lessened. the insurance proceeds shaD be
<br />applied to tbe sums secured by this Security Instrument, whether or nol 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 tbe insutance carrier Iw;
<br />oII'en:d to settle a claim, then Lender may collect the insurance proceeds. Lender may use tbe proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or nat then due. The JO.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 shaD not exlend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change tbe amounl 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 the Property prior to the acquisition shall pass to Lender to Ihe extent of the sums secured by this Securily
<br />Instrumenl immediately prior to the acquisition.
<br />6. Pn:ocnatloa mid MaID_ce of Proper]r; LeueIIo1ds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow Ibe Property 10 deteriorate or commil waste. If this Security [nstrumenl is on a leasehold,
<br />Borrower shall comply with Ibe provisions of the lease, and if Borrower acquires fee litle to tbe Propeny, the leasehold and
<br />fee title shaD not mCl'(!C unless Lender agrees 10 the merger in wriling.
<br />7. ProtectiOll of Lender'. R/Pts in the Property; MortJIqe Insurance, If Borrower fails to perform the
<br />covenants and agreements contained in this Securily [nstrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (sucb as a proceeding in bankruplcy, probate, for condemnation or to enforce laws or
<br />regu1ations), then Lender may do and pay for whatever is necessary to prole.:1 the value ohhe Propeny and Lender's rights
<br />in tbe Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in court, paying reasolUlble attorneys' fees and entering on tbe Property to make repairs. A1lhough
<br />Lender may take action under tbis paragraph 7, Lender does not bave 10 do so.
<br />Any amounts dishursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrowc:i' and Lender agree to other lenos of payment, these amounts shall bear inlerest from
<br />the date of disbursement at Ibe Note rate and shall be payable, with interesl, upon notice from Lender to Borrower
<br />requesting payment.
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