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<br />88- 105296
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<br />UNIFORM COVENANTS norrower and Lendercovcnnnt nnd agree UlI folio"',;
<br />I. I'aymenl of !'rlnelpa' and Inlerest: !'repayment and Late Charges. Borrower ,hall promplly pay when ;llIe
<br />the principal orund interest on the debt evidenced by the Note and any prcpn)'mCnl and latc charges due under the Note.
<br />2. Funds for Taxes and Insuram:c. Subject 10 applicable law or to n wrillen waiver by Lender, narrower 5111111 PU)'
<br />to Lender on the day monthly payments arc due under the Note, until the NOle is paid in full. a sum ("Funds") equal 10
<br />onc.tweInh of: (n) yearly taxes nnd nss.cssments which mny attain priority oyer this Sccurily Instrument; (b) yenrly
<br />leasehold payments or ground rents on the Property, if nnYi (e) yenrly hazard insurance premiums: nnd (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender OldY estimate the Funds due on the
<br />bnsisofcurrent data and reasonable estimutes of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which urc insured or guaranteed by n federal or
<br />slote agency (including Lender if lender is such on 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 interesl on the Funds and applicable law permits Lender 10 mllke such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless on agreement is made or applicable law
<br />requires inlerest to be paid, lender shall nol be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall g!....e 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 fat: 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 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 aU sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender, If under poragraph 19 the Property is sold or acquired by Lender. Lender shall opply, no loter
<br />than immediately prior 10 the sDle of the Property or its acquisition by Lender, any Funds held hy Lender at the time of
<br />opplication as a credit against lhe sums secured by this Security Inslrument.
<br />3. Application of Payments. Unless applicable law p!O\lides olherwise, all payments received hy Lender under
<br />paragraphs I and 2 shall be: applied: first, to late charges due under the Nole; second. to prepayment charges due under the
<br />Nole: Ihird, 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 altain priority.over this Security Instrument. und leasehold payments or ground rents, if any.
<br />Borrower sholl pay these obligalions in the manner provided in paragraph 2, or if not paid in that manncr. 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 paymcnts 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 Instrumenl unlL-ss Borrower: (u)
<br />ogrees in writing to the payment of the obligation secured by the lien in a manner acceptable 10 Lender: (h) conlests 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. (fLcnder determines thai any part of
<br />tbe 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 or notice.
<br />S. Hazard Insurancc. Horrower 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 shall be maintained in Ihc amounts und for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borro\\'er subject 10 lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shaH be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have Ihe right to hold the policies and renewals. If Lender requires, Borrower shall promptly give In Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shaH give promptl1otice to the insurance
<br />carrier and Lender. Lender mBY 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 />restomtion or repair is nol economicaUy feasible or Lender's securily 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 docs not answer wi1hin 30 days a nOlice from lender that the insurance carrier has
<br />offered 10 settle B claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or 10 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 exlend or
<br />postpone the due date oflhe monthly payments referred to in paragraphs 1 and 2 or change the amounl 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 Property prior to the acquiC:ltion shall pass to lender 10 Ihe extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisiti 'n.
<br />6. PresenBtion and !\faintenBnc:e of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. (fthis Security Instrument is on 11 leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrowcr acquires fee title tn rhe Property. the leasehold and
<br />fee title shall not merge unless Lender agrees 10 the merger in writing.
<br />7. Protection of Lendcr's Rights in the Property; !\lortgage Insurance. If Borrower fails II) perform the
<br />covenants and agreements contained in this Security lnstrument, or there i!\. a legal proceeding thai may significantly affect
<br />Lender's righls in the Propert}' (such as a proceeding in bankruptcy, probale. for condemnation ..or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to prolect the value of the Property and Lender', righh
<br />in the Prop.:rly. Lender's actions may include paying Bny sums secured by a lien which has priority ,wcr this Sccurlly
<br />Instrumenl, appearing in court. paying reasonable 3ltOrneys. fcc!\. and entcring on Ihe Property III make rcpair!<t. Although
<br />Lender may lake action under this paragraph 7, Lender docs not ha\'e tll do so,
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additIOnal debt of Ilorrtlwcr !\.ccured hy thiS
<br />Securi1Y instrument. UnlC!>s Borrower and Lender agree 10 other lerm!lo of payment. Ihcse amount" ..hall bear 1II1crc~t fr-ml
<br />the dale of disbuP.ocmcnl nl Ihe Note rale llnd shall he payable. with inlerest. upon flU!ll'l. from 1 cnJer II' Rornnn.'r
<br />requ~l1ng paymenl
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