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<br />88- 104476
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<br />UNIFORM COVENANTS. Borrower and Lcndcr covenant" and agree as Follows:
<br />I. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay whcn due
<br />thc principal of and interest on the dcbt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicablc law or to a writtcn waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly paymcnts are duc under the Note, until the t~ote is paid in full, a sum ("Funds") equal to
<br />one-twelfth of: (a) yearly taxes and assessments which may attain prinrity over this Security Instrument; (b) yearly
<br />lenschold 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 insurcd or guarantecd by a federal or
<br />statc agency (including Lcndcr if Lcnder is such an institution). Lcnder shall apply tbe Funds to pay the escrow items.
<br />Lcnder may not charge for hnlding 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 intercst 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 givc to Borrower. without charge, an annual accounting of the Funds showing crcdits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional securilY for the sums sccured by
<br />this Security Instrumcnt.
<br />If the amount of the Funds held by Lendcr, togcther with thc future monthly payments of Funds payable prior to
<br />the due dates ofthc escrow items, shall execcd the amount required to pay the escrow items when due, the execss shall be,
<br />at Borrowcr's option, either promptly repaid to Borrower or ercditcd to Borrower on monthly payments of Funds. If the
<br />amnunt of the Funds hcld by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lcnder any
<br />amount necessary to make up I he deficiency in one or more payments as required by Lender.
<br />Upon payment in full of all sums sccured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds hcld by Lender. If under paragraph 19 thc Property is sold or acquircd by Lender. Lender shall apply, no later
<br />than immediately prior 10 the salc of thc Property or its acquisition by Lcnder. any Funds held by Lcnder at the time of
<br />application as a credit against the sums secured by this Security Instrumenl.
<br />J. Application of Payments. Unless applicablc law provides otherwise. all paymcnts received by Lender undcr
<br />paragraphs I and 2 shall be applied: first. to latc charges due under the Note; secnnd, to prepayment charges duc under the
<br />Nole; third, to amounts payable under paragraph 2; fourth, to interest due; and lasl, to principal due.
<br />4, Charges; Liens. Borrowcr shall pay all taxcs, asscssments, charges. fines and impositions attributable to the
<br />Properly which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Darrower shall pay thesc obligations in the manner providcd in paragraph 2, or if not paid in Ibat manner, Dorrower shall
<br />pay thcm on time dircctly to thc person owed payment. Dorrowcr shall promptly furoish to Lendcr all notices of amounls
<br />tn be paid undcr this paragraph. If Borrowcr makes these paymcnts dircctl~', Borrowcr shall promplly furnish In Lender
<br />reccipls evidcncing the payments.
<br />Borrower shall promptly discharge any lien which has prinrity ovcr this Security Instrumcnt unless Dorrower: (a)
<br />agrces in wriling tn thc payment of thc obligation s.curcd by the licn in a manner acceptablc to Lcnder; (ll) contests in good
<br />faith the lien by, or defcnds against cnforccment of thc lien in. Icgal proecedings which in the Lendcr's opinion operatc to
<br />preventthc enforcement of the lien or forfeiture of any part of the Prnpcrty; or (c) secures from the holder of the licn an
<br />agrecmcnt satisfactory to Lender subordinating thc lien to this Security Instrument. If Lender dClermines that any part of
<br />the Property is subject to a lien which may anain priority over this SecurilY Instrument. Lender may give Borrower a
<br />notice identifying thc lien. Borrower shall satisfy thc lien or take one or morc of the actio"s set fonh abovc within lO days
<br />of tbc giving of noticc.
<br />5. Hazard Insurance. Borrower shall keep the improvements now eXisting or hen:af1er erected on lhe Properly
<br />insured against loss by fire, hazards included within the term "exlended coverage'" and any other hazards for which lender
<br />requires insurance. This insurance "'ihall be mainlained in the amounls and for 'h(' periods lhat Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subjecl to Lender'!. approval which shall not be
<br />unreasonably withheld.
<br />All insurance poliCies and renewals shall be acceptable III Lender and ~hoJl include a slandard mortgage dause.
<br />Lendcr shall havc the righl tn hold the policies and rcnewals. If Lendcr rcquires, Durrowcr shall promplly gIVe to Lender
<br />all receipl~ of paid premiums and renewal notices, In lhe e\lenl of loss. Borrower shall give prompt nl'lic~ to lh~ in~urnnce
<br />carrier and Lender. Lendcr may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower ot herwise agree in writing, insurance proceeds shall be applied 10 rotoralion or r~palr
<br />of the Property damaged. if the restorulion or repair lS economically feasible and Lender.~ security is nol lessent"Ci. If lhe
<br />restornlion or repair is not economicaJly feasibh: or Lender's security would be lessened. the insurance proceeds shall be:-
<br />applied to the sums secured by lhis Security Instrument. whether or not then due, with any eAcesS paid to Borrower. If
<br />Borrower abandons the Propert)'. or does nOl answer wilhin :\0 days a notice from lender thai the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds, Lender ma~' u~e the proceed.c; 10 repair or Tt..'!ttore
<br />the Propeny or to pay sums secured by this Securily Inslrument. whether or not then due. The 3D-day period will begin
<br />when the nOlice is given.
<br />Unless Lender and Borrower 01 hcrwisc agree In writing. any application of J'IfOceeds to principal shall nol extend or
<br />postpone the due dale oflhe monlhly paymenls rererred to in paragraphs I and 2 or change the amount oflhe payments. If
<br />under paragraph 19 the Property is acquired by Lender. Bornw,'ers. right 10 any insurance policies and proceeds resulting
<br />from damage to Ihe ProperlY prior to the acquisition shall pass to Lender tn the exlent oflhe sums secured by this Secunty
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and t\olaintenance of Property; Leaseholds, Borrower shall nol dcslroy. damage or subslantially
<br />change the Property, allow the Property to deteriorate or commil wastc. If this Security Instrument J!o. on a leasehold.
<br />Borrower shall comply with Ihe provisions of the lease, and if Borrower acquires fee title 10 the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees 10 the merger in writing.
<br />7. Protection of Lender1s Rights in the Property; Mortgage Insurance. If Borrower fails h1 perform the
<br />cO\lenants and agreemenls contained in lhis Security Instrument, or there I" a legal proceeding Ih.1I may signit!::arllly affect
<br />Lender's rights an the Properly (such al;j a proceeding in bankruplc)', probate, for condemnation or (0 enforce law... nr
<br />regulations). then lender may do and pay for whatever is necessary to protC'cllhe \ alue ufthe Property and lender'.. nght...
<br />in the Properly. lender's actions may include paying any sums secured hy 11 lien winch has priority (l\.cr thiS Sccuril~
<br />Instrument, appearing in court, paying reo!'iionablc attorneys' fee!>. and entcrmg nn the Properly t~ make repair.. Although
<br />Lender may take action under this paragraph 7, lender docs nol have 10 do...n
<br />Any amounls disbursed by lender under 1 hi'" paragraph 7 ..hall hecllmc iJddllllll1iJl Jchl nfBorro\\'cr ..c~ured hy lJlI~
<br />Security Inslrument. Unless Borrower and lender agree In other 1erm.. nf payment. 1he"l' anlllunl... ..hall hear intere,t from
<br />the dale of disbursement at the Noll' rail' and ,hall he pa~ahle, \\Ith mlt'll'..l, Ilplll\ ntllh:C frllm Lender tn Bnrnn.\'l'r
<br />requesting payment.
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