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<br />UNI..'C)RM CO\'F.NA.NTS Borrower nnd Lender covenunlllnd I.Igrec U~ follnw,,'
<br />1. Payment of Principal and Interest; Prepayment and Late CharRcs, Dorrnwcr ~hllll promptl)' pay when due
<br />the pnncipal of and intereM on the debt evidenced by the Nole ond any prepaymenf and late charge~ due under the Note.
<br />2. Funds for Taxes and Insurance" Subject to apphcnhle law or to II wrillen waiver by Lender, Borrower shull pay
<br />10 Lender on Ihe day monlhly payments are due under the NOIc. unlil1he Note is paid in full, a sum ("Funds") C(IU1l1 tu
<br />onc.t\\'elnh of: Cn) yearly laxcs and asscssments which may allain priorit). over Ihis Security Instrument: (b) yearly
<br />leasehold pnyments or ground rcn1s on the Property. if any; (c) yearly hazard insuntl1ce premiums; nnd (d) ycarly
<br />mongage insurance premiums. if any. These items ure called "escrow items." lender may eslimnle the Funqs due on lhe
<br />basis of current data and reasonable estima1es offuture cscrow items.
<br />The Fund'i 'ihall be held in an inslitution the deposits or nccounts of which ure insured or gUlIrunteed by u federal or
<br />slale agency (including Lender if Lender is such an institution). Lender shall npply Ihe Funds to pay the escrow items.
<br />Lender may nol charge for holding and applying Ihe Funds, analyzing the account or verifying the escrow items. unless
<br />Lender pays Borrower interest on the Funds and applicable law pennits Lender 10 make su~h a charge, Borrower and
<br />Lender may agree in wriling thaI inlerc.lit shall be paid on lhe Funds. llnless an agreement is made or applicable law
<br />requires intere.'ilto he paid, Lender shall not be required to pay Borrower any in';. ~ cst or carnings on the Funds. Lender
<br />shall give 10 Borrower, wilhout charge, an annual accounling of lhe Funds shuwing credits and debits 10 Ihe Funds and the
<br />purpose for which ellch dehllto the Funds was made. The Funds arc pledged as addilinnul securi1Y for the sums secured by
<br />this Securily Instrument.
<br />[(Iheamount of the Funds held by Lender,rogether with the future monthly payments of Funds payable prior to
<br />the due dates oflhe c.'tj;:ruw items, shall exceed the amount requlred to pay Ihe escrow ilems when due, the excess shall be,
<br />at Borrower's option, euher promptly repaid 10 Borrower or credited to Borrower on monthly payments of Funds, Ir lhe
<br />amount of the Fund!. held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay 10 Lender uny
<br />amount necessary 1(1 make up t he deficIency in one or more payments as required by Lender.
<br />Upon paymcnt m fu!! of all sums sccured by this Secnrity Instrumenl. Lender !<lhall promptly refund to Borrower
<br />any Funds held by l.ender. If under parugrnph lq the Proilerty IS sold or acquired hy Lender. Lender shall apply. no later
<br />than immediately prinr 10 the sale of the Property or Its acqui~I1lOn hy Lender, any Funds held by Lender at the time of
<br />applica1ion a... a credit agnin~l the sums secured b)' thi!t Sccunly Instrumenl.
<br />3. AppliCJItiun of Payments, Unlcs.s opplicable lew pmvldL'S olherwbc, all payments received by Lender under
<br />paragraphs I and 2 ...hall be applied; fir.il. to late charges due uroder the NOle; second, tn prepaymcnt charges due under the
<br />NOla:: third, to amounts payable under paragrnph 2; fourth, 10 mterest due; and last, to principal dUe.
<br />4. C'harKes; tieDs. Borrower shall pay ull taxes, assL'Ssmenls, chargL"S, fines and Impositions allribulablc to the
<br />Propeny which may altam pnonty over this Security Instrument, and leasehuld payments or ground rents, if any.
<br />Borrower shall pay these obligation!' in Ihe manner provided in paragraph 2, or if nnl paid in t har manner, Borrower shall
<br />pay them on time dlf(~t.:lly to the per.iun owed paymcnl. Borrower shull promptly furnish 10 Lender all notices of amounts
<br />to be paid under this parugraph. If Borrower make-. these payments direc1ly, Borrower shall prnmp11y furnish to Lender
<br />receipls evidenCing the payments.
<br />Borrower shall promptly dl~harge any lien whu:h ha~ prumty mer Ihis Securlly Inslrument unlt.."Ss Borrower: (a)
<br />agrees in writing to lhe paymcnl uflhe tlbligalion 'iL'Cured hy the lien 111 a manner :u.;ceplahle to Lender: (b) cnntests in good
<br />failh lhe: lien by, or defends agaln!.1 enforcement of the hen m, legal proccedmg~ which 10 Ihe Lender's opinion operale to
<br />prevenllhe enforcement of the hen ur fnrfellure of any part of the Properly; or (c) secures from Ihe holder of lhe lien an
<br />agreement satisfactory 10 Lender ,ubl1rdlllulmg Ihe hen 10 111I~ SL'Cumy In"trumenl. If Lender determines Ihatany part of
<br />1he Property is subjL'Ct (0 a hen which TIIay aUum pnorll)' ovcr 111I!I SL'Cumy In~lrumelll. Lender may give Borrower u
<br />notice idenlifying Ihe hen, Iklffllwer ,11;l11..ullsfy the hen or tah onc or more nf Ihe 1l1.:IHlt1!, ...cl forth above within 10 days
<br />of the giving of nollce
<br />5. Hazard Insurance, Bnrrower "hall keep Ihc Improvements now c~l!ttmg or hereaftcr erecled on Ihe Property
<br />insured againstlo!..'i by fire, hall1rd~ mcluded wllllln thc term "extended cll\lerugc" and any other hazards fnr which Lt'nder
<br />requires insurance. ThiS Insurance ..tlall be mUllltaincd in the amounts and fnr the penclds that Lender requirt=S. The
<br />insurance carrier prlw1dmg the 1TI!luruncc ..hall he dmsen by Borrower lOuhJecl I(l Lendcr's IIppmvul which shall not be
<br />unreasonably wllhheld.
<br />All insuranL.c pohCH!.\ and rcnewal", ,hall be acceptable 10 Lender and shl1l1mcludl: a stundard mongllge clause.
<br />Lender shall have the right 10 hold the pohclC!I and rellelo\'l1ls.. If Lender requires, Borrower \hall promplly give to Lender
<br />all receipts afpaid premium~ and renewal notICL"S. In the nenl of loss. Borrower ~hall gl\'e prompt notice 10 the insurance
<br />carrier and lender. Lender may make proof uflo", If nut made promptl) by Borrowcr.
<br />Unless Lender and Borrower otherwise agree III wnllng, lII'urnnce procecds ~haIl b.: applied 10 r~toru[ion or repair
<br />of the Property damaged, if thc n:storu[ion or repa1f is econonllcally fcasible and Lender'\ security i~ nol lessened. If the
<br />restoration or repair is not economically feasible or Lender's Sl.'Curity would he lessened. [he insurance proceed~ shall be
<br />applied to the sums secured by this Security Instrument, whelher or not Ihen due, with any exce!l.s paid 10 Borrower. rf
<br />Borrower abandons [he Property. or dDCS not answt:r within 3D days a notice frum Lender Ihat the insurance carncr has
<br />ofTered to scllle a claim, then Lender may collect Ihe immrance proceed'i. Lender may u~e the proceeds to repair or restore
<br />the Propeny or 10 pay sums secured by this Security Inslrumenl, whelher or nol then due. The 3D-day period will hegin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree 10 ,",nlll1g, any appilcallilll ofprm;eeds Itl princlpa: shall nol extend or
<br />poslpone the due date oftha: monthly payments referred to in paragraph~ I and :2 or change Ihe amount ufthe paymcnts. If
<br />under paragraph 191he Propcny is acquired by Lender, Borrower's right 10 any msurnnce poliCies and proceeds resulting
<br />from damage to the Propcn)' prior to (he acquisition shall pas... to Lender to the extent (lflhc sums secured by Ihi~ Set.:uruy
<br />Instrument immediately prior to 1he acquisllion.
<br />6, Presenation and Maintenance of ProperJiYj Leaseholds. Borrower shall nnl deslroy, dumage or ...uh!oolanlmlly
<br />change the Propeny, allow the Propcny 10 deleriorate or commit wasle. If thl~ Secunty In"trument I~ on a leasehuld,
<br />Borrower shall comply with the provisions or the lease, and if Borrower acquires fee tlllc 10 I he Property, lhe leasehold and
<br />fee lit Ie shall nol merge unless Lender agrees to thc merger In writing.
<br />7. Protection of Lender's Rip15 in the Property; :\tortpge Insurance, If Borrowcr fails 10 perform the
<br />covenants and agreements contained in this Security Instrument, or there" a legal pr<lceedtllg Ihat mllY ..igmficuntl}' affecl
<br />Lender's rights in Ihe Propcny (such as a proceeding in bankruptcy, probate, for condemnallon Dr 10 cnforce law~ or
<br />rcgulations), then lender may do and pay for whate\'cr is necessary 10 prolecl I he value of I he Properl)' and Lender', righl"
<br />in Ihe Propcny, Lc:ndC':r's actions may include paying any SUnlS sl."Cured hy II hen which ha.. prumty m'er thl~ Sel.'unly
<br />Instrument. appearing in court. paying reasonable anorneys' fees and cnlenng onlhe Prnperty 10 make repa1fs. Although
<br />Lender may take action under this paragraph 7, Lender does not have to 1.10...0
<br />Any amounts disbursed by Lender under Ihis paragraph 7 ..hall rn..'Cllmc additional dchlllf Unrfllwer "e\::ured h) 1111...
<br />Securily Instrument. Unless Borrower and Lender agree 10 olher tem1'" I)f payment, the...c anlOUIII.. "hall hear ITIlere...t from
<br />the dale of disbursement al the Notc rale and ,hall be pa)'able. \,..Ih mlciC"lI. UPll!l ntllh:e from Ll'lIlkr hl Bmnmt"
<br />rcqueslmg paymenl.
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<br />88-10480.1
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