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<br />88- 105195
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<br />UNIFORM COVENANTS. Borrower ond Lender cQvenant'and ogree as folluws:
<br />. I. Payment or Principal and Interest; Prepayment and Late Charges. Borrower shnll promptly pny when due
<br />the principal orand interest on the debt evidenced by the Note and nny prepayment and late charges due under the Notc.
<br />2. Funds for Taxes Bod Insurance. Subject to applicable law or 10 D written waiver by Lender, Borrower sholl pay
<br />10 Lender on the day monthly payments Drc due under the Note, until the Note is paid in full, n sum ("Funds") equal to
<br />nnc-lwell'th nr: (0) yearly tDltCS nnd assessments which mny attain priority over this Secllrity Instrumenl; (b) yearly
<br />leasehold payments or ground rents on the Property, if nnYi (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, irnny. These items are called "escrow items," Lender may estimate the Funds due on the
<br />basis of current data nnd reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by aJederal or
<br />state agency (including Lender if Lender is such o.n institution). Lender shan 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 pennits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is mnde or applicable law
<br />requires interest io be paid, Lender shall not be required to pay Borrower nny 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 />Ir the amollnt of the Funds held by Leoder, together with the future monthly paymcnls or Funds payable prior to
<br />the due dates of the escrow items, shan exceed the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's option. either promptly repaid 10 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 ~hall pay to Lender any
<br />amou'nt necessary 10 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. Ifunder 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 />application as a credit against the sums secured by this Security Instrument.
<br />3. Application or Payments. Unless applicable Jaw provides otherwise, all payments received by Lender under
<br />paragraphs 1 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. Chargesi Liens. Borrower shall 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 irnot paid in that manner. Borrower shaH
<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. Borrowcr shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation 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 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 lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender delermines that any part of
<br />the Property is subject to a lien which may attain 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 ofnolice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "'extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shaH 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 />unreasonably withheld,
<br />All insurance policies and.renewals shalJ be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policics and renewnls, If Lender rcquircs, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss. Borrower shaH give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly 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 the restoration or repair is economically feasible and Lender's security 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 not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property. or does not answer within .30 days a notice from Lender that the insurance carrier has
<br />olfered to settle a claim. then 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 Instrument. whether or not then due. The 3D-day 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 eJl.tend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Propeny prior to the acquisition shnll pass to Lender to the e,tenl of the sums secured by thi, Security
<br />Instrument immediately prior to the acquisition.
<br />6. Prese"atlon and Malntenanee of Properly; LeasehoIdB, Borrower shall not destroy, damnge or substaolially
<br />change the Property. allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shaH 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 />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (sucll as a proceeding in bankruptcy. probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the ProperlY and lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property 10 make repairs. Although
<br />Lender may take action under this paragraph 7. Lender does not have to do so.
<br />. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms ofpDyment, these amounts shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable. with interest, upon notice from Lender In Borrower
<br />requesting payment.
<br />. If Lender required mortgage insurance as a condition of making the Joan secured by Ihis Sccurit), InstruOlcnl,
<br />Borrower shall pay the premiums required to maintain the insurance in effec1 unLiI such time us Ihe requirement for Ihe
<br />insurance terminates in accordance with Borrower's and Lender's written agreement or applicable lu\\'.
<br />8. Inspection, Lender or its agent may make reasonable entries upon nnd inspections uf lhe Propert)'. Lender
<br />shall give Borrower notice at the time of or prior to an inspection specifying reusonllble cause fur the lIlspcctiulJ.
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