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<br />88- 1052.14
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<br />UNIFORM CoVENANTS Borrower and Lendercovenant and agr..", follows:
<br />I. Paymenl of Principal and InlorOlI; Prepaymon' and Lalo Chars... Borrower shall promplly pay when due
<br />Ihe principal of and interesl on lhc dcblevidenced by tbe NOle and any prepayment and lale charges due under the Note,
<br />2. Fundi for Ta.OI and Insuranco, Subject 10 applicableiaw or to a written waiver by Lender. Borrower shall pay
<br />to Lender on Ihe day monthly payments are due under tbe NOle, unlilthe NOle is paid in full, a sum ("Funds") equal to
<br />one-.twclfth of: (a) yearly taxes and El5SeSsmcnts which may anain priority over this Security Instrumentj (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />manpge insurance premiums, if any. These items are called ucscrow items'" Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates offuture escrow items.
<br />The Funds sball be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />slate agency (including Lender if Lender is such an instilution). Lender shall 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 Jaw permits Lender 10 make sucb a charge. Borrower and
<br />Lender may agree in writing that interest shan 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 />shaD 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 [nslrumenL
<br />If the amount of the Funds held by Lender, together with Ihe future monthly payments of Funds payable priorto
<br />the due dates of the escrow items. shall exceed the amount required to pay the escrow items wben 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 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, Lo:nder 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 tbe 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 of Payments. Unless applicable law provides otherwise, all payments rcceived by Lender under
<br />paragraphs I and 2 shall be applied: fi"t, to late charges due under the Note; second, 10 prepayment charges due undcr Ihe
<br />Note; third. to amounts payable under paragraph 2; fourth, I' . .lIeresl due; and last, 10 principal due.
<br />4. Cbar1les; U..... Borrower sball pay alllllles. 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 sball
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender aU 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 priorilY 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 pan of the Propeny; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender detennines 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 of notice.
<br />S. Huanllnaunnce. Borrower shall keep the improvements now existing or hereafter erected on the Propel1y
<br />insured as.inst loss by fire, hazards included within thelerm "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 insurance shall be chosen by Borrower subjcct to 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 ,he right 10 hold the policies and renewals. If Lender requires. Borrower shall promptly give to Lender
<br />aU 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 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 Propeny damaged, if the restoration or repair is economically feasible and Lender's security is notlesscned. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shaD 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 wilt begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall nol extend 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 Propeny is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage 10 the Property prior to the acquisition shall pass to Lender [0 [he eAlent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preoenatiollud Maintenance of Properfr. Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Propcn)', allow the Propeny to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall compJy with the provisions or 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. ProtectiOD or Lender'. Rigbts in the Property; Mortpge Insurance. If Borrower fails to perform [he
<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 (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations). then Lender may do and pay for whatever (s 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 oller this SecurilY
<br />Instrument, appearing in court, paying reasonabJe attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may lake 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 Ihis
<br />Security Instrument. Unless Borrower and Lender agree to other (erms of payment, these amounts shall bear interest from
<br />the date of disbursement at lhe Nole rate and shan be payable, with mteresl, upon nollce from Lender 10 Borrower
<br />requesting payment.
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