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<br />88- 105200
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<br />UNIFORM COVENANTS Borrower nnd Lender covennnJ Dnd agree us follow!i:
<br />I, Plyment of Principe' and Interesl; Prepayment and Late Charges. Borrower sholl promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and Dny prepaymCn1 ~nd lote charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subjccllo applicable law or to B written waiver by Lender, Borrower shall poy
<br />10 Lender on thc day monthly payments ore due under the Note, untillhe Note is paid in full, a sum ("Fund''') equal 10
<br />one-twelfth of: (a) yearly la.es and assessments which may euain priority over this Security Instrumenl; (b) yearly
<br />leaschold paymenls or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />m0i1g8gc insurance premiums. if any. These items are calJcd "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of fmure escrow items.
<br />The Funds shall be held in an institution the: deposits or accounts of which are insured or guaranteed by 8 federal or
<br />SlJlte agency (including Lender if Lender is such on institulion), Lender sholl apply Ihe 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 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 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 />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 wes mod.. The Funds ore pledged es additional security for the ,urn, ,ecured 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 oftbe Funds held by Lender is not 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 sums secured by this Security Instrument, Lender shall promptly refund to 1l.orrower
<br />any Funds held by Lender, If under paragraph 19 the Property is sold or acquired by Lender, Lender sholl apply, no later
<br />thun immediately prior to the sule of the Property or its acquisition by Lender, uny 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 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, 10 interest due; und lest, 10 principal due.
<br />4. Charges; Liens. Borrower shall pay aU 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 IInder 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 hes 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 Ihe enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien on
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines 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 />noticl: 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 notice.
<br />5. Hazard Insurance, Borrower ,haU keep the improvements now e.isting or hereafter erected on the Property
<br />insured against loss by fire. hazards included within the term "cxtended 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 insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld,
<br />All insurance policies und renewals shaU be acceptable to Lender and shall inclllde a slJInclurd mortgagc clouse,
<br />Lender shall hove the right to hold the policies and renewals, If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums und renewal notices. In the event ofloss, Borrower shall give prompt notice to the insurunce
<br />carrier und Lender, Lender may make proof ofloss if not made promptly by Borrower,
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall bc applied to restoration or repair
<br />of Ihe Property damaged, if the restoration or repair is economically feasible und Lender's security is not lessened, If the
<br />restoration or repair is not economicalJy 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 />offered 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 3O-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 extend or
<br />postpone the due dale 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 uny insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition sliall pess to Lender 10 the exlent of the sums secllred by this Security
<br />Instrument immediately prior 10 the acquisition,
<br />6. Presenation and MaIntenance of Property; Leaseholds. Borrower sholl not destroy, damage or ,ubstantially
<br />change the Property. aUow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold.
<br />Borrower shall comply with Ihe provisions of the lease, und if Borrower acquires fee title to the Property, the leasehold und
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights In the Properly; 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 Propeny (such 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 Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority oYer this Security
<br />Instrument. appearing in coun, paying reasonable attorneys' fees and entering on the Property to 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 of payment, these amounts shall bear interest from
<br />the date of disbursement at the Note rate nnd shall be payable,. witb interest, upon notice from Lender to Borrower
<br />requcsting payment.
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