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<br />UNIFORM COVENANTS. Borrowerand Lendercovenanland agree as follows:
<br />J. Plymeal of PrIncipal and Inlorat; P"'paymonl and Lolo Charg... BorrDwer shall promptly pay when due
<br />the principal of and Interest on Ihedeblevidenced by Ibe Note and any prepayment and lale cbarges due under Ihe Note.
<br />Z. Funds for To.. and IDluraD... Subjecllo applicable law or to a wrillen waiver by Lender. Borrower shall pay
<br />to Lender on tbe day monlbly paymen.. are due under Ihe Note, unliltbe Nole is paid in full, a sum ("Funds") equal 10
<br />onNwell\b of: (a) yearly lal<es and assessments wbicb may allain priorily over Ihis SecurilY Instrumen!: (b) 'yearly
<br />leasebold paymen.. or ground renls on tbe Propeny, if any; (c) yearly bazard insunmce premiums; and (d) yearly
<br />monNe iMuran.. premiums, if any. These items are called .....row ilems." Lender may estimatelhe Funds due on the
<br />basis of currenl data and reasonable eslimales offuture ...row ilems.
<br />The Funds sbaD be beld in an instilution Ibe deposils or accounts of which are insured or guaranleed by a federal or
<br />stale agency (including Lender if Lender is such an Inslilulion). Lender shall apply Ibe Funds to pay Ibe escrow ilems.
<br />Lender may not charge for holding and applying Ihe Funds, analyzing the accounl or verifying tbe escrow ilom" unless
<br />Lend... pays Borrower interest on the Funds and applicable law pennits Lender to make sucb a cbarge. Borrower and
<br />Lender may agree In wriling lhat interesl shall be paid on the Funds. Unless an agreemenl is made or applicable law
<br />requires interest to be paid, Lender shall not be required 10 pay Borrower any interest or earnings on Ihe Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds sbowing credits and debits to Ihe Funds and Ihe
<br />purpose for wbicb eacb debilto Ibe Funds was made. The Funds are pledged as additional securilY for tbe sums secured by
<br />this Securily Instrumenl.
<br />If the amounl of tbe Funds beld by Lender, logetber with tbe fUlure monlbly payments of Funds payable priDr to
<br />the due dates of the ...row items, sball exceed the amount required to pay tbe escrow ilems when due, the excess sball be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amounl of the Funds held by Lender is nol suflicientlo pay the escrow ilems wben 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 paymenl in full of all sums secured by Ihis Security Instrumenl, Lender sball promplly refund to Borrower
<br />any Funds beld by Lender. If under paragraph 19tbe Propeny is sold or acquired by Lender, Lender sballapply, no later
<br />than immediately prior 10 tbe sale of the Property or its acquisitiDn by Lender, any Funds held by Lender allhe time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. App1icatlOll of PaJIIIOllIII. Unless applicable law provides otberwise, all payments received by Lender under
<br />paragraphs I and 2 sball be applied: first, to late charges due under Ihe NOle: second, 10 prepaymenl cbarges due under Ihe
<br />NOIe; third, to amounts payable under paragrapb 2; fourtb, to inlerest due; and lasl, 10 principal due.
<br />4. <::Jaarses; U..... Borrowe, sball pay a11lal<es, assessmenls, charges. fin.. and impositions allributable to Ihe
<br />Propeny whicb may attain priority. over this 5<curity Inslrument, and leasehold payments or ground rents. if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, Dr if nol paid in tbat manner. Borrower shall
<br />pay them on time directly to the person Dwed paymenL Borrower sball promptly furnish to Lender all nOlices of amODn"
<br />to be paid under this paragrapb. If Borrower makes these payments directly. Borrower shall promptly furnish 10 Lender
<br />receipts evidencing the payments.
<br />Borrower shaD promptly discharge any lien whicb has priorilY over Ihis Security Instrumenl unless Borrower: (a)
<br />agrees in writing to the paymenl of the obligation secured by the lien in a manner acceptable to Lender; (b) conies" in good
<br />faith the lien by, or defends againsl enforcement of the lien in, legal proceedings whicb in the Lender's opinion operale 10
<br />prevenl the enforcement of the lien or forfeiture of any part of the PropenYl or (c) secures from the holder of Ihellen an
<br />agreement satisfactory to Lender subordinating the lien to this SecurilY Instrumenl. If Lender del ermines Ihal any pan of
<br />the Property is subject 10 a lien wbich may altain priority over Ibis Securily Inslrument. Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more oflhe aclions sel fonh above within 10 days
<br />oflhe giving of notice.
<br />5. Huard Inaunnce. Barrower shan keep Ihe improvements nDW existing or hereaner erected on Ihe Propeny
<br />insured against loss by fire, hazards included wilhin Ihetenn "extended coverage" and any olher ha..rds for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />I1I!fOUOD8bly withheld.
<br />AU insurance policies and renewals shan be acceptable 10 Lender and shall include a standard mongage clause.
<br />Lender shall have the right to hold Ihe policies and renewals. If Lender requires, Borrower shall promptly give 10 Lender
<br />all receipts or paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof ofloss if not made prom!'tly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged. if Ihe restoration or repair is economically feasible and Lender's security is nOII....ned. If Ihe
<br />....toration or repair is not economically feasible or Lender's securily wDuld be I....ned. the insurance proceeds shall be
<br />applied to the sums secured by Ihis Securily Instrument, whelher or not then due, wilh any cxcess paid 10 Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />otrered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or rcstore
<br />the Property or 10 pay sums secured by Ihis Securily Instrumenl, wbether or nDI Ihen due. The 31klay 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 exlend or
<br />postpone the due date of the monlhly payments referred 10 in paragraphs 1 and 2 Dr change the amount Df Ihe payments. If
<br />under paragrapb 19 the Property is acquired by Lender, Borrower', righllo any insurance policies and proceeds resulling
<br />from damage to the Propeny prior 10 Ihe acquisition shall paiS 10 Lender 10 Ihe exlenl of the sums secured by this SecurilY
<br />Instrument immediately prior 10 the acquisition.
<br />6. Prelenltlon ud Mainl....... ofProperJ,r. Leueholds. Borrower shall not destroy, damage or substanlially
<br />change the Property. allow [he Property to deteriorate or commit waste. If this Security Instrument is on a leasehold.
<br />Borrowcrsballcomply with the provisions of the lease. and ifBorrowcr acquires fee title to [he Property, the leasehold and
<br />f..title shaIIlJOI merge unl... Lender agrees 10 lhe merger in writing.
<br />7. ~ of ..........'. R1Pb ill the I'rcperty; Mortp&e IDlurance. If Borrower fails 10 perform Ihe
<br />covenants and agrecmcnll contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's riabts in the Property (such aJ a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations). then Lender may do and pay for whalever is n......ry 10 prDloclthe value of the ProperlY and l~nder's rights
<br />ill the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in coun. paying reuonBble attorneys' fea and entering on the Propcny to make repairs. Although
<br />Lender may take action under this paragraph 7, Lender dOOl nol bave 10 dD 'D.
<br />Any amounts disbursed by Lender underlhis paragraph 7 shall becDme oddilional debt of Borrower secured by Ihis
<br />Security Instrument. Unless Borrower and Lender agree to other tenns orpayment. these amounts shall bear interest from
<br />the date of di.Jbunemmt at the Note ratc and shall be payable., with mlereilt. upon nonce from Lender to Borrower
<br />req....lina pafJOOftt.
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<br />88-105056
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