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<br />88- 105375
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<br />U~IF()RM COVENANTS Borrower nnd Lender C'nvenllnl and agree as follows:
<br />I. Paymenl of Itrlnelpal and InterlS!; Prepayment Bnd Late Chargcs. Borrower shall promptly pay when duC'
<br />the principal orand interest on the debt evidenced by the: Nole and any prepayment and lote charges due under the Note.
<br />Z. Funds for Taxes and Insurance. Subjecllo applicable law or 10 a written waiver by Lender. Borrower shall pay
<br />to Lender on the doy monthly payments arc due under the NOle. u"lillhe Nole is puid in fuU, a sum ("Funds") equnllo
<br />one-twclnh of: (n) yearly taxes nnd assessments which may attain priority over Ihis Security Instrup1cnt: (b) yearly
<br />leasehold paymenls or ground rents on the Property. if nny; ee) yearly hazard insurance premiums: and Cd) yearly
<br />mongage insurnnce premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on Ihe
<br />basis of current data and reasonable estimates offulure escrow items.
<br />The Funds shall be held in an institution the deposits or accoun1s of which are insured or guaranteed by a federal or
<br />stale agency (including Lender if Lender is such an institution). Lender shall apply the Funds 10 pay ~he escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the c.scrow items, unlc.ss
<br />Lender pays Borrower inte~est on Ihe Funds and applicable law penn its Lender to make such a charge. Borrower and
<br />lender may agree in wriling Ihal interest shall be paid on the Funds. Unless an agre~ment is made or applicable law
<br />requires interest to be paid, Lender shall nol 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 credils 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 Ihe sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with Ihe future monthly payments of Funds payable prior 10
<br />the due date.., of the escrow items, shall exceed the amount required to pay the e~crow items when due, Ihe excess shall be,
<br />at Borrower's oplion, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount oflhe Funds held by Lender is not sufficient to pa}' Ihe escrow items when due, Borrower shall pay to Lender any
<br />amounl necessary to make up the deficiency in one or more payments as required by Lender.
<br />Upon payment in full of all sum!!. secured by this Security Inslrument, Lender shall promplly refund 10 Borrower
<br />any Funds held by Lender. Jfunder paragruph lQ the Property is sold or acquired hy Lender, Lender shaH upply, no later
<br />Ihan immediately prior to the sale of the Property or its ucquisition by Lender. any Funds held by Lender at the lime of
<br />application D.'i n credit against the sums secured by this Security Insl rument"
<br />. 3. Application or Payments, Unless applicable law provides otherwise. all paymenls received by Lender under
<br />paragrnphs I and 2 shall be applied: first. to lale charges due under the Note; second. 10 prepayment charges due under the
<br />Note: third, to amounts payable under paragraph 2; fourth, to interest duc; 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 if not paid in that manner, Borrower shall
<br />pay them on time dirt."Ctly to the person owed payment. Borrower shall promptly furnish to Lender flll notices of amounts
<br />to he paid under IhIS paragraph. If Borrower makes these payments direclly, Borrower shall promptly furnish to Lender
<br />receipts evidencing 1he payments.
<br />Borrower shall promptly discharge any lien which has priority over Ihis Security Instrumenl unless Borrower: (a)
<br />agrees 10 writing 10 the payment of the obligation secured by the lien in a munner acceptable to lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proct.'Cdings which in the lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture or any pan of the Property; or (c) secures from the holder of the lien an
<br />agfl'Cment satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Properly is subj~r 10 a lien which milY attain priority over litis SecurilY InS1tUlt\etU, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy Ihe lien or lake one or more of the actions set fonh above within 10 days
<br />of the giving of notice.
<br />5, Hazard Insurance, Borrower shall keep the improvements now e~lsling or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coveruge" and any other hazards for which Lender
<br />requires insurance. This insurance sholl 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 renewaL'i shall be acceptable 10 Lender and shall include u standard mortgage clause.
<br />Lender shall have the right 10 hold the policies and 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 ifoot 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 />restonuion or repair is not economically feasible or Lender's security would be lessent.-d, lhe insurance proceeds shall be
<br />applied to the sums secured by 1his Security Instrument, whether or not then duc, with any e~cess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice frem Lcnder that the insurance carrier has
<br />offered to settle a claim, then lender may collect Ihe insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Propcrty or 10 pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin
<br />when the notice is given,
<br />Unless Lender and Borrower otherwise agree ill writing, any applicalion of proceeds 10 principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 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 10 the Propeny prior to the acquisition shall pass to Lender to the exlent of Ihe sums secured by this Security
<br />Instrument immediately prior to the acquisition,
<br />6. Presenation and Maintenance or Property; Leaseholds. Borrower shall not deslroy. damage or substantiaJly
<br />change the Property, allow the Property to deteriorate or commit waste. If this Securily Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title tn the Property, the leasehold and
<br />fee tide shall not merge l.mless Lender agrees to the merger'in writing.
<br />7. Protection or Lender's Rights in the Property; Mortgage Insura~cc, If Borrower fails to perfclrm Ihe
<br />covenants and agreements contained in this Securily Instrument, or there is a legal proct.'Cding thai mllY significantly alfecl
<br />Lcndcr~s rights in the Propcny (such as a proceeding in bankruptcy, probate, for condemnlllion or [Q enforce 11Iws or
<br />regulations), then Lender may do and pay for whatevcr is necessary 10 proteclthe '..alue 'If the Property and Lender's rights
<br />in the Property. Lcnder.s actions may include paying any sums secured by a lien whidl ha~ priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property 10 make n:pmf!\. Ahhnugh
<br />Lender may take action under this paragraph 7, Lender does nol have (Q do so,
<br />Any amounts disbursed b)' Lender under this paragraph 7 shall becllme additional dt:hlllr Borrower "l't'ured h~ thl~
<br />Security IJI!otrument. Unless Borrower and Lcnder agree to other term'i of payment. lhe\e amlHlnl.. ..hull hear \lIlc:rc..t fnml
<br />the dale of disbursement al Ihr Nole rate: and shall be payable. wl1h II1lerest. upon nnth.'I' Ihun Lt"ndef III Borrower
<br />reque1ting payment.
<br />If Lender n:quucd mnrtgage insurance a!l. n condl11OI1 of maklll~ the loan \ecured hy till.. Sl"l:Urll~ 10..11'I1111l:lIt.
<br />Unrrn""C'r "hall pa)' Ihe premIUm!. required to main lain the insurance in effect unul \u\.'h lime a.. ,hl' rCllulfl'lIIt"nl Illf tht"
<br />lD!ourancc: tc:rmlnaleo. In accordance wilh Borrower's and Lender'., wollen agrermel1tl'r nppllcuhlc hl\\
<br />II, InlpectJun. Lender or lilt agent may make rea50nBhle enln~ upun and m"'pt:\.'llon!to Ilf lhe- (lIPI'I"I1\ I L.'lIkt
<br />fohnll ~I\C' Borro..cr nnlll'C .1llhe lime "for prior 10 DO insfleCtion lipcclf)'lng r~..unllhle C;IUM' fllf IhC' 11l"pC'\."llllll
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