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<br />UNlFOR.M COVENANTS. Borrower and Lender coyenant ond agree as follows: 88- 104976
<br />I. Pa)'mont nr PrincipII Ind Inlcrest; Prepoyment Ind Late Chlrses. Borrower shall promptly pay when due
<br />Ihe principalnrand interest on Ihe debl evidenced by Ihe Note and any prepayment and laic charges due under Ihe NOle.
<br />z. Funds rorTaxes and Insurance. Subject to applicable low or to 0 written waiver by Lender, Borrower sholl pay
<br />to Lenderan the day monthly payments are due under Ihe Note. until the Nnte is paid In rull. a sum ("Funds") equal to
<br />one-twelO:h of: (a) yearly taxes and assessmenls which ma)' attain priority over this Security Instrument; (bj yearly
<br />I....hold payments nr ground renls on lhe Properly, ir any: (c) yearly hazard insurance premiums: alld (d) yearly
<br />mortgage insurance premiums, if any. These items ore called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and rcnsonnble estimates offuture escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by n federal or
<br />slale agency (including Lender if Lender is such an institution). Lender shall apply the 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 inlerest on the Funds and applicable law permils Lender to make such a charge. Borrower alld
<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 shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shaJlgive to Borrower, without charge, an annual accounling orthe Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as addilional security for the sums sl:clIred by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender. logcther with the future monthly payments of Funds payable prinr to
<br />the due dates of. the escrow items, shaH 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. If the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessnry to make up the deficiency in one or more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. [runder paragraph 19 the Property is sold or acquired by Lender, Lender shaUapply, no later
<br />lhan immedialely prior to the sale of lhe Property or its acquisition by Lender. any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs] and 2 shall bellpplied: first. to late charges due under the Note: second. to prepayment charges due under the
<br />Nate; third, to amounts payable under paragraph 2; fourth, to interest due; and last. 10 principal due.
<br />4. Charges~ Lieos. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Security Jnstrdmen1. and leasehold payments or ground rents, if any.
<br />Borrower shaH pay these obligations in the manner provided in paragraph 2, or if nol paid in thai manner, Borrower sholl
<br />pay them on time directly [0 the person owed payment. Borrower shall promptly furnish 10 Lender all notices of amounts
<br />10 be paid under this paragraph. If Borrower makes these payments direclly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge Dny lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment oftheobHgation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the Hen in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating lbe lien 10 this Security Instrument. If Lender detennines that any part of
<br />the: Property is subjecl to a lien which may altain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of n01ice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on Ihe Property
<br />insured againsi !::"4'li by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. ThiS iu.i:':':'!lnce shall be mainlained in the amounts and for Ihe periods that Lender requires. The
<br />insurance carrier providing the insurallc: lihall be chosen by Borrower subject 10 Lender's apPI')val which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptao:..:. ~.... Lender and shall incJude 0 slandafd mortgage clause.
<br />Lender shall have the right 10 hold the policies and renewals. If Lender .':,Ilires, Borrower shall prom pH}' give to Lender
<br />all receipts afpaid premiums and renewal notices. In the event of loss, Borrower sn,,:: ~lve prompt notice 10 the insurance
<br />carrier and Lender. Lender may make proof of Joss if not made promplly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing. insurance procec..>ds shall be applied I~ restoralion or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is nul lL.'Ssened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened. lhe insurancc pro~'!eds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with an)' excess paid to Bt;.-rower. Ir
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender thol the insurance cOiner has
<br />offered to settle a claim, then Lender may collectlhe insurance proceeds. Lender may use the proceeds 10 repair or rc.::torc
<br />the Property or to pay sums secured by this Security Instrument, whether or nol Ihen due. The 3D-day period will bebi"
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in wriling, any application of proceeds to principal shall not extend or
<br />postpone the due date cfthe monthly payments referred to in paragraphs I and 2 or change the amount of1he payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right 10 any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender 10 lhe cXlcll1 urthe sums secured by Ihi.!. SCl:Uril}'
<br />Instrument immediately prior to th:: acquisition.
<br />6. Presel'Y8tion and Maintenance of Property; Leaseholds. Borrower shall not deslroy, damage or substantially
<br />change the Property. allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />74 Protedion or Lender's Rights in tbe Property~ Mortgage Insurance. If Borrower fails 10 perform the
<br />covenants. and agreements contained in Ihis Security Instrumenl. or [here is a legal proct.oeding that may significanlly affecr
<br />Lender's rights in the Property (such as a proceeding in bankruptcy. prohnlc. for condemnation or 10 enforce laws or
<br />rcgula'ions), then lender may do and pay for whatever is necessary to prolel:1 the ,.'alue orthe Proper1y lJnd Lender's righls
<br />in the Property. Lender's actions may include paying any sums sccured by a lien which has prior1I~' over lhis Security
<br />Inlrrumenl.lppearing in court. paying reasonable attorneys' fees and enlering on Ihe Properly 10 make repairs. Although
<br />Lender may rakeaclion under this paragraph 7, Lender does nol have [0 do w.
<br />Any arnoun1s disbursed by Lender under Ihis paragraph 7 shall become" addilional deb. uf Rorrower sl~url-d h)' Ihil'o
<br />Security Instrumenl. Unless Borrower llOd Lender agree to olher lerm!t orpuymcnc, Ihese urnounl' ..hall hcur intcrc.."'il from
<br />the dale of dw,uncmml 41 the NOle rate and shall be payable, wilh inlerest. upon notice from lendl'r 10 Dnrrmllo'er
<br />reqUC5tjna payment.
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