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<br />UNIFORM COVENANTS, Borrower and Lender covenant and agrec a, follows: 88- 10458 S
<br />I. "'ymenl of PrIncipal BIllIlnlereat; Prepayment and Lale Charges. Borrowcr shall promptly pay whcn due
<br />the principal of and inleresl On Ihe debt evidenced by the Note and ony prepayment and lote ehorgcs duc under the NOle,
<br />2. Funds for Taxes and losul'llllCe. Subjecllo applicable low or to a wriUen waiver by Lender, Borrower ,hall pay
<br />10 Lender on the day monlhly payments are due under Ihe Notc. unlil Ihe NOle is paid in full. a sum ("Funds") equal 10
<br />one-Iwellih of: (a> yearly taxes and assessmenls which may atlain priority over thi, Securily Inslrumcnl; (b) yearly
<br />leasehold paymenls or ground rents on Ihe Propeny, if any; (c) yearly hazard in,urance premiums: and (d) ycarly
<br />mortgage insurance premiums. if any. These items are called uescrow items." lender may estimate the Funds due on the
<br />basi, of curren I dala and rcasonableeslimates offulure 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 />slale agency (including Lender if Lender is ,uch an In'litulion). Lendcr sball apply Ihe Funds to pay the escrow item"
<br />Lender may nol charge for holding and applying the Fund,. analyzing the accounl or verifying the escrow item" unlcss
<br />Lender pays Borrower interesl on the Funds and appllcablc law permits Lender to makc ,uch a charge. Borrower and
<br />Lender may agree in writing Ihal interesl ,hall 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 give to Borrower. without charge. an annual acL:ounting of the Funds showing credits and debits 10 the Funds and lhe
<br />purpose for which each debit 10 the Fund, wa, made, The Fund, arc pledged as additional ,ecurity for the ,urns secured by
<br />this Security Instrument.
<br />If the amount of the Fund, held by Lender, togcthcr with the future monthly payments of Fund, payable prior to
<br />th~ 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. eilher promptly repaid to Borrower or credited to Borrower on monlhly payments of Funds. If the
<br />amount of the Funds held by Lender is nol sufficient to pay the escrow items when due, Borrower shall pay to Le;:nder uny
<br />amount neces.~ry to make up the deficiency in one or more payments us required by Lender.
<br />Upon payment in full of all sums secured by this Security [nsrrument, lender shall promptly refund ro Borrower
<br />any Funds held hy Lender, ffunder paragraph 19 the Property IS sold or acquircd hy Lender. Lender shall apply. no laler
<br />than immediately prior to the sale of the Propert)' or its acquisition by lender, any Funds held by lender at the time of
<br />application as D credit ngain!tt the sums !\ccurcd by this Security I nsl rument.
<br />3. Applicallon of Payments. Unles, applicable law provides otherwise, all poyments receIVed by Lender under
<br />paragruphs I and :2 !thall be applied: firsl, (Q laic charges due under the Note; !iccond, 10 prepaymenl charges due under the
<br />Note; third. to amounts payable under puragraph 2; fourth. to Interest due; and last, to pnncipal due,
<br />4. C'barKes; Liens, Borrower shall pay alllaxes, asst."SsmenIS. ,,'harge.\, fines llnd Impo!tHlons auributable to the
<br />Property which may attam prionty over tillS Security In!ttrumt:nt, and leasehold pllymenls lIr ground rents, If any
<br />Borrower shoJi pay lht."Sc obhgallons In the manner provided In paragraph 2, or If not paId In rim! manner, Borroy,'cr !'.hall
<br />pay them on time direct I)' 10 Ihe person owed payment Borrower s.hall promptly furnl!th 10 Lender all nullL'e~ of amounts
<br />to be paid under Ihls paragraph. If Borrower makes rhest: payments directly, Borrower shall promptly furnish to Lender
<br />reccipls evidenCing the payments,
<br />Borrower shall promptly discharge any hen which has pnonly ovcr Ihi!\ SCl:urllY ll1~(rumcnl ullles~ Borrower: (a)
<br />agrcoin wTlting to the payment ofthc: obligation secured by the hen In a manner acceptable 10 Lender; (b) contests in good
<br />fauh the lien by, or defends against cnforcemenl of the hen in, legal proceedtng~ which 111 the Lender's opimon operate to
<br />pre\lcnt Ihe enforcement ufthe lien or forfclIure of any part of the Prnpcrty; or (c) secures rrom the holder of lhc lien an
<br />agrcemenl sal1!ifaclory 10 Lender ~ubordmatlng the hen 10 thiS Securily Instrument. If Lender delcrmines Ihal any pan of
<br />the Property I!\ !tubJcd 10 II hen which may allalO pnority micr thi~ Sccunty In!\lrUmcnt, Lender may ~W.'C Borrower n
<br />notice' IdcnllfYllIg the hen Borrowcr ",hall \ul1~fy the hen or take one or more of the ucllons ~el forlh utx)\le within 10 dllY~
<br />of the givinM of nu11L'C
<br />5. lIazard Inluranet'. Uorrowcr ~huJl keep the irnprO\'cmcnh now eXlsling llr hereafter erecled on the 'Iroperly
<br />insured agnlllM 10\\ b)' lire, hUl,Urd\ IJldudt~ wlthm the term "extended coverage" nnd any uther hazard!t for whIch Lender
<br />rcqulr~ Im.urUIlL:e TllI~ lIl!turUllce ",hall be: mamlumr:d in the amount~ and for Ihe period!t Ihul Lender requlre!t. The
<br />insurun&:l' carner rro\oIlJIIl~ Ihe III,urllnL'e "hall be chmcn by Borrower s.ubjecI to Lcnder's uppnwal which shull not be
<br />unrca.onobly wllhhcld
<br />AIIIII\Ufalll'C' pnhL'lc, and rcne""ab ..hall be acceptable;: fo Lender and \hall mdude a standard mortgage clause.
<br />Lender !thall hu\e the rlghl fo huld lhe puhcle~ and renewal~, If Lender require!>>. Borrower shaH promptly give to Lender
<br />all receipts of paid prcmlum\ and renC'\\'ul nollce,. In the c\'ent of JO!i.\. Borrower shull give promplnotice to the in!>>urunce
<br />carner and Lender Lender ma) make proof of loss Ifnol made promplly by Borrower,
<br />Unles!t Lender and Borrower ulherv"l!te agree m wn1lng. In!turanl.:C proceeds shull be applied It} resloratlon ()r repl.oir
<br />of the Property damaged. If the re!'lolorall110 or repair is economl&:ully fea!tlblc and L.ender's !'I&:cunty I!'I not les:-.enoo, If lhe
<br />reslocalian or repair l!t nol cl;unomlcalJy rea!>>ible or Lender's security would be lesscnr:d. the in!turance proceed!i shall be
<br />applied (0 the sums \ccured by thiS Security Instrument. whether or nol then due, with any e.llcess paid to Borrower. If
<br />Borrower abandol1!t the Property, or doc!>> nOI answer wilhin 30 days a nmice from Lender that the insurance carrier has
<br />offered 10 settle a claim. then Lender may collect the insurance proceeds, Lender may use the proceed!>> to repair or restore
<br />the Property or to pay sums !tCCurcd by this Securir)' Instrument, whether or not then due, The JO.day period will begm
<br />when the nOlice i!t given,
<br />Unless Lender and Borrower otherwise agree in writing. an)' application of proceeds In princlpal shall not c.Iltend nr
<br />postpone 1he due dute of the moolhly puymenls referred to in paragraphs 1 and:2 or changc the amount oflhe paymcnls. If
<br />under paragraph 191he Property IS acquired by Lender. Borrower's righllo any Insurance policies and prol."ced!\ re:-.ulllllg
<br />from damage to Ihe Property prior 10 the acquisition shall pass to Lender to thee~lent orthe "'UIII!\ ...ecurcd h) thl" Security
<br />Instrumenl immediately prior to the acquisirion.
<br />6. Presenation and Maintenance of Property; Leasebolds. Borrower ~hall nol de:-'(fll)', uamage (Ir ..uh!oltanllally
<br />change the Property. allow the Property to deteriorate or commit waste. If thiS Securlly Instrumenl l:'i on a lea:o.ehold.
<br />Borrower shall comply wilh the provisions of the lea!>>e. and if Borrower acqmre!t fee tille to Ihe Prllperly. thc leasehold and
<br />fee title shall not merge unless lender agrees to the merger in writing.
<br />1. Protection of Lender's Rights in the Property; Mortgage Insurance, If Borrower falls to perform lhe
<br />covenants and agreements conlained in Ihis Security Inslrument. or Ihere IS a I~gal proct.ocding Ihal may ~igOltkanlly .lITeel
<br />Lender', righls in the Property (such as a proceeding in bankruptcy, probate, for condemnalton llr 10 cnfun:c law" or
<br />regulations), then Lender may do and pay for whalever is necessary 10 prolect (he value of the Propert} Ilnd Lender'.. righl"
<br />in the Propcny, lender's aclions may include paying any !Jums secured by a hen which ha.... pnoruy m;er IhlS SeL'urtl)'
<br />Instrument. appearing in court. paying reasonable attorneys' fees and entenng on Ihl' Property tn make repaIr... Alfhough
<br />lender may take action under this paragraph 7. lender does nOI have to do so
<br />Any amounts dl'ibursed by lender under this paragraph 7 shall bccoml' addlllollul dl~hl tlf Hllrnl\\CI" "c\:Uf'cd h~ I hi"
<br />Secunty Instrumenl Unles.s Borrowrr and Lender agree to other Icrnl\ {If paymenl. Iht..~e amounl.. ,h;t11 tlCltT 1Il1l:n....1 ,",lIlTl
<br />the date of disbur~melll al Ihe NOle rate and ...han be payahle, wllh mlereo.l. Uptlll IlUlh:C rfllm I ~"hlcl f" B.III\'\H'r
<br />rcqUe5l1ng payment,
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