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<br />88-105259
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<br />t.:SlnJRM COVENANTS norrower [lnd Lender covenaO( and ugree U~ (ulltH"',
<br />t. I'a)'mcnt or Principal and Interesl; Prepayment and Lote CharRcs. Burrower ~hlll1 promptly pny when due
<br />lhe pnncipnl urand interest on the debt evidenced b)' the Nole and any prcpaymcnlllnd bile charge", due under Ihe NOle.
<br />2. Funds ror Taxes and Insurance. Subject to applicable law or 10 II written waiver hy Lender. norrower shall pay
<br />In Lender on lhe day monthly payments are due under the Note. umillhc Note i~ paid in full. n sum ("Fund!i") equal to
<br />om:-lwcInh of: (n) yearly tuxes and assessments which mD)' at loin priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortguge in~urnncc premiums, if any. These items are called "escrow item~." Lender moy estimate the Funds due on the
<br />ba.~is of current data and reasonable estimates offuture escrow itcm~.
<br />The Funds shall be held in an institution the deposits or accounts of which arc insured or guaranteed by a federal or
<br />statc agency (includlng Lender if Lender is such nn institution). Lcnder shull apply the Fund5 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 intere!'t 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 was made. The Funds arc pledged as additional security for the sums securcd by
<br />this Security Instrument.
<br />Uthe 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 urthe 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 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 />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 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. Chargesj 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 ifnot 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 />receipt'i 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 Uen 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 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 />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 />5. 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 coveragc" 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 and renewals shall be Ilcceptable 10 Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies Ilnd renewals. If Lender requires. Borrower shall promptly 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 of loss ifnnt made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be upplied to rL"Storation 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 />offered to settle a claim. then Lender may collecl the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whe(her or not then due. The 3D-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writmg, any application of proceeds to principal !'hall nol extend or
<br />postpone the due dat~ of the monthly payments referred to in paragraphs I and 2 or change the amounl of the paymenls. If
<br />under paragraph 19the Property is acquired by Lender. Borrower's right to any insurance policiL"S and proceeds resulling
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destmy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. 1f this Security Instrumenl is on a leasehold,
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquires fee title 10 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 Borrowt:r fails to perform lhe
<br />covenants and agreements contained in this Security Instrument, or there is illegal proceeding thaI may significulIIly affect
<br />lender's rights in the Property (such as a proceeding in bankruptcy. probute. for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whate\'er is necessary 10 protect the ,,'alue ofthc Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums securcd by a licn whil:h hal. priority over lhis Security
<br />Instrument. appearing in court. paying reasonable al1orneys' fees and enlering ol11he Property tn make n:pair!i. Although
<br />Lender may take action under this paragraph 7. Lender does not havc to do !ill.
<br />Any amounts disbursed by lender under this paragraph 7 ~hall hc~,..nl1le audltulIIallkht of Hommer l.ccured by thi!-.
<br />Security Instrument. Unless Borrower and Lender agrec to other term.. orpaYlllenl. Ihe"l' atllllllnl't ..hall hear interc'il frol1\
<br />lhe date of disbursement al the Note nile and "hall he payahle. \\llh mh..'rl'''l. Upllll lIl\lll'l' from l.ender tl) Bormwer
<br />n:que!'llng payment.
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