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<br />88- 105066
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<br />uNIFORM COVENANTS. Borrower and LendercovcnBnt and agree as follows:
<br />I. Payment or PrIncipal IUId Interest; Prepayment IUId Late Charges, Borrower shall promptly pay when due
<br />the principnl orand interest on the debt evidenced by the Note and any prepaymentllnd latt: charges due under the NOle.
<br />2. Funds rorTun IIIId Insurance. Subject to applicable law or to 0 written waiver by Lender. Borrower shall poy
<br />to Lender on the day monthly payments ore due under the Note. until the Note is paid in full. D sum (UFunds") equal 10
<br />one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground renlS on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mongage insurance premiums, if any. These items are called "escrow items." Lender may e.'itimate the Funds due on the
<br />basis OreUmnl data and reasonable estimatcs ofruture 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 />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender 10 make such a charge. Borrower and
<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 10 be paid. Lender shaH not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower. without charge, an annual accounting of the 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 additional security for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the 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, 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 sball 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 sums secured by this Security Instrument. Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply. no later
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />applicalion as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments, Unless applicable law prQ\o';des otherwise, aU payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charges; Liens. Borrower shaH pay all taxes, assessments, charges. fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security lnstrumenl unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable 10 Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien 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 Jien an
<br />agreement satisfactory to Lender subordinating lhe lien to Ihis Security Instrument. If Lender detennines that any part of
<br />lhe Property is subject to a lien which may attain priorily over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall sallsfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving ofnotice.
<br />5. Hazard Insurance. Borrower shull keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire. hazards included within the tenn "extended coverage" and any other hazards 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 insumnce shall be chosen by Borrower subject 10 Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies. and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promprly give to Lender
<br />all receipts of 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 nol made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repr.ir
<br />of the Propeny damaged, if the restoralion or repair is economically feasible and Lender's securily is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or nol then due, with any execs.. paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender thai the insurance currier has
<br />offered to sellle a claim, Ihen Lender may collect the insurance proceeds. Lender may use the procecd~ to repair or restore
<br />the Propeny or to pay sums secured by this Security Instrument, whether or not then due. The 3D-day period will begin
<br />when the notice is given.
<br />Unless Lender and BorroYo'er otherwise agree in writing, any application of proceeds [0 principal shall nOI extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of (he payments. Jf
<br />under paragraph 19 the Propcny is acquired by Lender, Borrower's right to any insurance pohcies and proceeds resulting
<br />from damage 10 Ihe Propeny prior 10 the acquisition shall pass to Lender to the extent ofthl: sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. PresecyatioD and MlIIinlenance of Property; Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Propeny. aJJaw the Propeny to deteriorate or commit waste. If this Secun1y 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 10 the merger in writing.
<br />7. Protection of Lender.s Rights in the Property; Mortgage Insurance. If Borrower falls to perfonn the
<br />co,,"cnants and agreements contained in this Security Instrument, or there i~ a legal proceeding thai may significantly affect
<br />Lender's righls in the Property (such as a proceeding in bankruptcy. probate, for condemnation or to enforce laws or
<br />\regulations), Illen Lender may do and pay for whatever is necessary to protect the \'a!uC' of the Property and Lender's rights
<br />in the Propeny. Lender"s actions may include paying any sums secured by a lien which ha't prioril)" \wer thiS Secunl)'
<br />Instrument. appearing in court. paying reasonable attorneys' fees and entering on the: Property to make n:pam._ Although
<br />Lender may take action under this paragraph 7, Lender docs nol have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Burro\\ er 't"\..ureJ h) t lu!ot
<br />Security Instrument. UnIC'!o!t Borrower and Lender agree to other terms of pay men I. Ihe~C' amoullt~ ..hall near lnlcrc'l fnlm
<br />the date of disbu~mC'nr at the Note: rale and shall be payable. with inlerest. upon nollL'c from LcnJer hI B(lrn'"CI
<br />requesting payment.
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