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<br />88- 104493
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<br />U~lFORM COVENA NTS Borrower and Lender covenant 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 intercst on lhe debt evidenced by the Note and any prepaYlllent and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicablc law or to a wrlllen waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under thc 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; (hI yearly
<br />leasehold payments or ground rcnts on thc Propcrty, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums. if any. These items are called "escrow ilenls." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />Tbe Funds shall bc held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agcncy (including Lender if Lendcr is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying thc Funds, analyzing the account or verifying the escrow items. unless
<br />Lender pays Borrowcr interest on thc 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 'ihall 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 10 the Funds was made, The Funds an: pledged as additional ....:curity for the sums secured by
<br />tbis Security Instrument.
<br />If the amount of the Funds held by Lender. togethcr with the future monthly paymcnts or Funds payable prior 10
<br />tbe due dates of the cscrow ilems, shall excced the amount required to pay the escrow lIems when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited 10 Borrower on monthly payments of Funds, If the
<br />amount of Ihe Funds held by Lender lS not sufficient to pay th~ escrow items when due, Borrower 5.hall pay to lender an~'
<br />amount necessary to make up the defiCiency in one or more payments as required by lender.
<br />Upon payment in rull of all sums secured by thIS Security Instrument, Lender shall promptly refund \0 Borrower
<br />any Funds held by Lendcr. (f under paragraph I q the Property is ,old or aeqUlred by Lcnder, Lendcr shall apply, no later
<br />than immediately prior 10 the sale of the Properl~ or its acquisition by lender. an~ Funds held by lender at the time of
<br />application as a credit against the sums !\.ecured hy this Seeurir)' Instrument.
<br />3. Application of Payments. Unless apphcablc law prOVIdes otherWISe. all paymenl' reccl'ed by Lender under
<br />paragraphs I and 2 shali be applied: first. to late chargcs due under the Note; ,"cond, to prcpaymcnt charge, due under the
<br />Note; tnird, to amounts payable under paragraph 2: founb, 10 inleresl due; and lasl. \0 prinCIpal due.
<br />4. Chargcs; Liens. Borrnwcr shall pay all taxes, assessmcnts. charges. fines and .mposlllons attributable to the
<br />Property which may attain priority over thl5. Security Instrument. and leasehold payments or ground rents, If any.
<br />Borrower shall pay these obliga1ion~ In the manner provided in paragrnph 2. or if not paid in that manner, Borrower shall
<br />pay them on time directly 10 the per!!.on owed payment. Borr~J\\'er ..hall promptly furnish to Lender all nollcc."!. of amount!\.
<br />to be paid under thIS paragraph. If Borrower makes Ihese paymenh directly, Borrower shall promptly furmsh to Lcnder
<br />receipts evidencing the payment~.
<br />Borrower shall promptly discharge nny lien which ha~ ("Inori1}' o\cr thl!t Sccuri1~' Instrumell1 unle!t!<i Borrower (a)
<br />agrees in writing to the payment of I he obligation secured by the lien 10 a manner acceptable to lender; (h) contc."!\1!o1 In good
<br />faith the lien by, or dcfends against cnforcement of thc hen in. legal proceedings which in Ihe Lendcr', opm"m "perate tn
<br />prevcnt the enforcement of the lien Of forfeiture of any pan of Ihe Propert)'; or (e) ~ecures from the holder of 1he lien an
<br />agrcemcnl satisfactory to Lender subnrdinaung the hcn 10 tillS Security Instrumcnt. (fLender detcrntllles Iha. any part of
<br />the Property is subject to a Iicn which may attalO priority over thiS Securny Instrumem. lender may gl\'C Borrower a
<br />notice: identifying the lien, Borrower !ohall satisfy the lien or lake one or more nflhe actlon~ ~el forth abO\'c wlthjn 10 day'!'!
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the imprm.'ement!o now eXlstmg or hereafter erecled on the Propeny
<br />insured against loss by fire. hazards included within the term "extended cm'eragt"" and any other hazards for which lender
<br />requires insurance, This insurance shall be maintamed 10 the amnunl~ and for the penod!\. that Lender r~ulres. The:
<br />Insurance carrier providing the insurance shall be chosen by Borrower \UbJel't 10 lender', apprm'al whlch ~hall not be
<br />unrcasllnably withheld.
<br />All insurance policies and renewals shalJ he acccptahle 10 lender and shallmdude a standard mortgage c1au~e.
<br />Lcnder shall have the righlto hold the policies and renewal, If Lender reqUlrL.", Borrowcr .hall promptly gIVe to Lendcr
<br />all n:ceipts afpaid premiums and renewal notices. In the e\'elll uf lu'!'!s. Born"'l,^,cr ,hull gl"C' prompl nollce to the Insurance
<br />carrier and Lender. lender may make proof of loss If ntH made pnmlpll~ h) Ullrrower
<br />Unless Lender and Borrower otherwi!<ie agree in wnllng. m,urUlH':C pn'ceed~ ,hall or apphed III rCloolOratlon or n:palr
<br />of the Property damaged, if the r~toration or repmr l!t economically fcu'lhlc and Lender's '!'!ccunt~ IS not I~!tened. If Ihe
<br />restoration or repair is not economically feasible or lender's secuTlI~ would hl' Ics~encd, the lDsurancc procced~ !\halJ bt:-
<br />applied to the sums secured by this Security Instrument. y..'hcther or 11111 then Jue. with any c"ccs~ pUld 10 Borrower If
<br />Borrower abandons the Property, or does nol answer Wlthm JD day!'> .. nllllcc fwm L~nder thai the IIlsurance carner has
<br />offered to scttle a claim. then lender may collect rhe: msurunl'C' proct:Cd'!'! Lender may use Ihe pro~c:ed~ 10 repair or restore
<br />the Property or to pay sums secured by this Security Instrumenl. "'hcrher or nol then due. The 3D-day penod will begin
<br />when the notice is given.
<br />Unless Lender and Borrower 01 herwise agTl:e In writing. an} apphcaHon of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraph~ 1 and ~ or change the amount of the pu!- ments. If
<br />under paragraph 19 the Property is acquired by Lender. Born'wcr'~ nght to any Insurance policies and proceeds Tt~~ulting
<br />from damage to the Property prior to the acquisition shall pas~ to Lender tOlhe extent of the ..urns ~ecuTt:d by IhlS Security
<br />Instrument immediatel).' prior 10 the acquisition.
<br />6. Preservation and J\1aintenance or Property; Leaseholds. Borro"'er shall not desl ro). damage or ~uLs(anllall~
<br />change the Property. allow Ihe Property 10 deteriorate or commit waste. If thl!!. SCL:uriiY lnstrumenl i!\. on a lca~ehold.
<br />Borrower shall comply with the provisions nfthe lease. nnd if Borrower a'.4ulres fee title 10 the Propeny, the lea~ehold and
<br />fee title shall not merge unless Lender agrees to the merger in wrlllng.
<br />7, Protection of Lender's Rights in the Propert)': "lortga~e lnsurance. If Borrower fall!\. II) per[llrrn Ihe
<br />covenanls and agreements contained in Ihi!<i Security Instrumcnl. tlr Iht"rL' 1'0 a legal proceedmg Ihat may ~lfWlth:.HlII~ affecI
<br />Lender's right~ in the Property (such as a proceeding 10 hallkrupll.:Y. prohalc, for l'"ndcmnallon (lr to ~nfon:c law!\. or
<br />regulations). Ihen Lender may do and pay for wha1e\'cr 1'!'! nl:ccs'!'!ury to proIC!.'1 Ihe value of the Pr\lpert~ and Lender"!\. right~
<br />in tht: Property. Lender's actions may include paymg all~ ,urn' ~eC'urcd h~ LI hCIl "hh.'h ha~ prionl~ over thIS Sccunl~
<br />Instrument, appearing in court. paymg rca~onahlc al1orncy!\' fecs and cnlcnng llTl Ihc Pfllrert~ 10 make repair,. Although
<br />Lender may take action under Ihis paragraph 7. Lender dpc!'> nol hH\.'c 10 do!\.p
<br />Any arnounls disburscd by Lender under Ihl' purugraph "7 ..hall hCC'IIIllC addll1l1l1al Lkhl of BPTrllWcr 'Cl"Url'l! b~ I hI'
<br />Security Inslrumcnt. Unless Borrower and 1.cnder agree hI ill her lerm~ (If pa~ mcn!. thc...e aT1JlIullh ,hall hear IIIten....t [rom
<br />the date of disbursement al the Note rare anJ ..hall he pa~:IhlC', w11h InlL'rel,l. upnll 1l1l!ICl' frnn: lenJt'r III Htll'f{l\,\"er
<br />requcMlOg paymenl.
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