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<br />UNIFORM CoVEN"NTS Borm.....r and l.a1d.rc:ovenanund agr.. a. follows: 88 - 10497 4
<br />I, """'t 0' Priaclpal ...d lateresl; Prepaym.al and Lal. ChIJ'llOl. Borrow.r .hall promptly pay wh.n due
<br />Ih. principal orand inl.....1 on th. debl .vldenced by th. NOI. and any pr.paym.nt and lal. charg.s due und.r Ih. NOI..
<br />%. Funda'or Tu..ud IllI1Il'!lI1ce. Subjoclto applicabl.law or 10 a wrill.n waiv.r by L.nd.r. Borrow.r shall pay
<br />to Lender on Ih. day monthly paymenl. are due und.r Ih. Not., unlilth. Not. i. paid in full, a .um ("Funds") .quallo
<br />one-1....oIfth of: (a) yearly I.... lIDd ......m.n15 which may analn priority ov.r this Security Inmum.nt; (b) yearly
<br />Ic:aKhold payments or ground rents on the PropenYl if anYi (c) yearly hazard insurance prcmiumsj Bnd (d) yearly
<br />monpae insurance premiums, if any. These Ilems are called .....row II.ms." L.nd.r may eslimat. th. Fund. due on Ih.
<br />basi. ofcurn:nl dalland reuonabl. ..llmales offulure escrow it.ms.
<br />Th. Funds shall be h.ld In an institulion Ihe deposits or account. of which ar.ln.ured or guaranleed by a fed.ral or
<br />.lIle ....,cy (including l.a1der if l.a1d.r i. SlIch an In.titulion). l.a1d.r shall apply th. Funds 10 pay th. ...row it.ms.
<br />Lender may nol charae for holdina and applyina Ih. Funds. analy,ina Ih. accounl or v.rifyina th. ...row it.m.. unless
<br />Lender pays Borrower int....1 on Ih. Funds and applicabl. law permil' l.a1d.r to make such a chara.. Borrow.r and
<br />Lender may qree in wrilina thaI int....t shall be paid on th. Funds. Unless an agreement is mad. or applicabl. Jaw
<br />requires InlereStto be paid, l.a1d.r .haIl nol be required 10 pay Borrow.r any inl.rest or earning. on Ih. Funds. Lend.r
<br />ahalI live 10 Borrower, wilhout charge, an annuallCCOunting ofth. Fund. .howing cralit. and d.bits 10 th. Fund. and th.
<br />purpose for which each debit 10 the Funds was mad.. The Fund. are pledged as additional security for th. .um. secured by
<br />tbisSecurity Instrumenl.
<br />If Ih. amount of the Funds h.ld by Lender, log.th.r with lb. future monlhly paymenl' of Funds payabl. prior to
<br />the due dales oflhe escrow items. s!talI exceed the amount required to pay the escrow items when due. the excess shall be.
<br />at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. Irlhe
<br />amount of the Funds held by Lender is nol sufficient to pay the escrow items when 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 .ums secured by this SecurilY In.trum.nl. l.a1d.r .hall promptly r.fund to Borrower
<br />any Funds held by Lender. If under paragraph 19 th. Propeny i. sold or acquired by Lend.r. Lend.rshall apply, no lat.r
<br />than immedialely prior 10 th. ",I. of Ih. Propeny or its acquisilion by Lend.r. any Fund. h.ld by Lend.r al the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. App\leatlOSl 0' Paym.DII. Unless applicabl. law provides oth.rwise, all payment. received by Lend.r und.r
<br />paragraph. I and 2 shall be applied: first, 10 lat. charges due under the NOI.; second. to prepayment charges due und.r the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; Bnd last, to principal due.
<br />4. ~ U..... Borrow.r shall pay a1ll1Xes. assessm.nts. charges. fines and imposition. allributabl. 10 th.
<br />Property which may attain priority. over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower sha1I pay these obligations in tb. mann.r provided in paragraph 2, or if not paid in Ibat mann.r. Borrow.r shall
<br />pay them on time directly to th. penon owed payment. Borrow.r .hall promptly furnish 10 Lend.r all notices of amounts
<br />to be paid under this paragrapb. If Borrow.r makes these paym.nls directly, Borrow.r shall promplly furnish 10 L.nd.r
<br />receipts evidencing Ih. payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (8)
<br />agrees in writing to th. payment oflh. obligalion secured by th.nen in a mann.r acceptabl.to Lend.r; (b) conles15 in good
<br />faith th.lien by, or defends again51 enforcement of th. lien in. legal proceedings wbich in th. Lend.r's opinion operal. 10
<br />prevent the eaforcement of th. lien or forfeiture of any pan of Ih. Property; or (c) secu.... from th. hold.r of the li.n an
<br />agroemeal satisfactory 10 l.a1d.r .ubordinaling th.lien to this Security Instrument. If Lend.r det.rmines thaI any pan of
<br />thc Prnperty is subject to a lien which may attain priority over this Security Instrument, Lender mDY give Borrower a
<br />notice identifyina the lien. Borrower shall S&tisrv the lien or take one or more of the actions set forth above within 10 days
<br />ofth. givinaofnotice.
<br />5. Huard IIIRIWIICC. Borrower shall keep the improvement.5 now existing or hereaOer erected on the Propeny
<br />,~..,.l ~nstlll5S by fire, hazards includ.:d within th.t.rm "ext.nded cov.rag." and any otb.r hazards for which Lend.r
<br />requires insurance. TI:~ insurance shall be maintained in the amcun15 and for the periods thai Lender requires. The
<br />insurance carrier providing the iU;;:!'1lnce shall be chosen by Borrower subjecl to Lender's approval which shall nol be
<br />un.........bly withh.ld.
<br />All insUJ'll1ce policies and ren.wal. .haIl be --........bl. to Lend.r and shall includ. a standard mont\lg. clause.
<br />Lender ahalI hav.th. right 10 hold th. policies and ren.wals. Ii ::'.nder requires, Borrower shall promplly aiv. to Lend.r
<br />aU receipts ofpaid premiums and renewal notices. In the event or loss, ~-:-rower shall give prompt notice to the i,"!surancc
<br />carrier and Lender.l.a1der may mak. proof oflll5S if not mad. promptly by Bon".."...
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds mati ~ IlDplied to restoration or repaii
<br />of the Property damaged, ir the restoration or repair is ec:onomically feasible and Lender's securi,;.' is not lessened. Ir the
<br />restoration or repair is not economically feasibl. or l.a1der's security would be lessened, th. in.urance p.t'Ceed. .h.1I be
<br />applied to the sums secured by this Security Instrumellt. whether or not then duc, with any excess paid to 8o.'7ower. Ir
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carriet' "as
<br />otrered to settle a claim, tbm Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Inmumenl. whether or nol Ihen du.. Th. 3lklay period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not .xtend or
<br />postpone the duedaJe oflhe monlhly payments r.ferred to in paragraphs I and 2 or chang.lh. amounl ofth. paym.nlS. If
<br />under paragrapb 19 the Property is acquired by Lender, Borrow.r'. righlto any insurance policies and proceed. resuJ'ing
<br />from damqe to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrumen. immediately prior to the acquisition.
<br />.. Praenalloa IIIlI MalateDIDeC of ProperJr. LuMholda. Borrow.r .hall nOI des1roy. damag. or substantially
<br />cbaup: the Property, allow the Propeny to deteriorate or commit wastc. If this Security Instrumenl is on a leasehold.
<br />Borrower ahalI comply with the provisions oflh.l..... and if Borrower acquires f..titl. to Ih. Propeny, th.l....hold and
<br />f..lille ahalI not merge unless Lender agr_to lhe merger in writing.
<br />7. ~ of Leader'a Ripb I. the ~; Mortpp laaurance. If Borrow.r fails 10 perform ,h.
<br />coYaWItsand qreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />I..mck:r's riablJ in the Property (such as a pnxeeding in bankruptcy, probate. for condemnation or to enforce laws or
<br />reauIatioaa), then Lender may do and pay for what.ver is n......ry to protoclth. valu. of1h. Properly and Lend.r'. righlS
<br />in lho Property. Lender's IClions may includ. paying any sums secured by . lien which has priority ov.r thi, SecurilY
<br />Instnunent, appcarinl in COU~ paYlng reuonable &lIomeys' fees and entering on the Property to make repairs. Allhough
<br />Leader may take action under lhi, paragraph 7. Lender does not hay. to do so.
<br />Any lRIOunll disbuned by Lend.r und.r this paraaraph 7 ,hall become addilional debl of Borrower secured by Ihis
<br />Sec:urity lnurumcnt. UnJeu Borrower and Lender a.ree to other terms. of payment. these amounls shall bear inleresl from
<br />the date- or dilbunemcnt at the Note rale and shall be payable, with mlcrcst, upon notice from Lender to Borrower
<br />req....unl paymenl.
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