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<br />88- 105501
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<br />UNlnlRM C()\'I:N^Sl' Uorruwcr nnd Lender covenno1 and llgrce U!o follow\;
<br />I. Payment or .'rIDelpal and Interest; Prepayment IInd ...ale CharRcs. BOrIn",cf ,hull prnmptly pill' when due
<br />the pnnclpal of and inlere'" on the debt evidenced by th~ No!e nnd un)' prcpnymcnlund hne chllrgc~ due under the Nole.
<br />1. Fundi for T.1C5 and Insurance. Subject 10 upplicllble Inw or to n wollen wluvcr hy Lender, Borrower shall pay
<br />10 lender on Ihe day monthly payments. arc duc under (he Note. u"tillhe Note is paid in full. a sum ("Funds") equal to
<br />one.twdfth of: (u) yenrly tuxes and Msessmenls which may unuin priority over this Security Instrument; (b) yenrly
<br />lcnschold pnymenls or ground rents on the Property. if nny; (c) yearly hn7.3rd insuruncc premiums: and Cd) yearly
<br />mortgage insurance premiums. if nny. These items Bre called "escrow items." Lender may estimate the Funds due on the
<br />b41sis of current datB and reasonable estimates of future C"crow items.
<br />The Funds shall be held in on institution the deposits or accounts of which arc insured or guaranteed by n federal or
<br />state agency (including Lender if Lender is such an 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 llr verifying the escrow items, unbss
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such u charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agre~ment is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any inteft:st or carnings on the Funds. Lender
<br />shall give to Borrower. without ~harge. an annuaJ 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 secured by
<br />this Securit)' Instrument.
<br />If Ihe amounl 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 />ai Borrower\ option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount ofrhe Funds held by Lender is not sufficient to pay the escrow items when due. Borrower shall pay to Lender any
<br />amount neces~ar)' tn 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 In~trument, Lender shall promptly refund to Borrower
<br />any Funds held hy Lender. Jfunder paragraph lQ thc 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 hy this Security Jnstrument.
<br />3, Application of Payments. Unless applicable law provides otherwise, alJ 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, lo interest due; and last, to principal due.
<br />4, C'I1arResj Uens, Borrower shaU pay all taxes. assessments, charges, fines and impositions anributable to the
<br />Propert)' which may altain priority over this Security Instrument, and leasehold payments or ground rents, if nny,
<br />Borrower shall pay the.e obligations in rhe manner provided in paragraph 2. or if nol paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish 10 lender all notices of nmounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payment...
<br />Borrower shall promptly discharge uny lien which has priority over this Security Instrument unlt.oss Borrower: (a)
<br />agr~ In wntmg to the payment of the obligation secured by the lien in a manner acceptable to lender; (b) conlests in good
<br />faith the lien by, or defends against enforcement oflhe lien in. legal proceedings which in the Lender's opinion operate to
<br />pre\'ent the enforcement of the lien or forfeiture of any part of the Property; or (c) secure.'t from the holder of the lien an
<br />agreement ~atisfactory to lender subordinating the lien to this Security Instrument. Jf lcnder detcrmines that any part of
<br />the Property is subject 10 u lien which may attain priority oyer this Security Instrument. Lender may give Borrower a
<br />notice identifying Ihe lien. Borrower shall satisfy the lien or take one or more of the actions s~t forth above within 10 days
<br />oflhe 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 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 insumnce policic:!l and renewals shall 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 10 Lender
<br />all receipts of paid premiums and renewal notices. In Ihe event of 105s. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of 10 55 if nol made promptly by Borrower.
<br />Unless Lender and Borrower otherwise ag:ce 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'!\ security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessem..-d, the insurance proceeds shall be
<br />applied 10 Ihe sums secured by this Security Inslrument, whether or nol then due. with an}' excess paid to Borrower. If
<br />Borrower abandons the Propcny. or docs not answer \lIo;thin 30 days a nolice from lender that the insurance carrier has
<br />offered to seith: a claim. then Lender may collect the ir.surance proceeds. Lender may use the proceeds to repair or restore
<br />the Propcny or 10 pay sums securee by this Security lnstrumenl. 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 procreds 10 principal shall not extend or
<br />poslpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amounl of the payments. If
<br />under parngraph 19 the Property lS acquired by Lender, Borrower's right 10 any insurance policies and proceeds resulting
<br />from damage to the Propeny prior to the acquisition shall pass to Lender to the exlenl ofthc sums secured by this Security
<br />lnstrument immediately prior to the acquisition.
<br />6. PresenatioD ed l\laiDtenance of Property; Leaseholds, Borrower shall not destroy. damage or substontJI1II)'
<br />change the Property. al10w the Property to deteriorate or commit waste. If Ihis Security Instrument is on a leasehold.
<br />Borrower shalJ comply with the provisions of the lease, and if Borrower acquires fee tille to the Property, Ihe leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of under'. Rights in the Property; Mortgage Insurance" If Borrower fnib. to perfllrm the
<br />covenants and agreements contained in this Security In!'trument. or lhere is a legal proceeding IhuI may !\lgOlfh.'IHltl) alrcl.'1
<br />Lender's rights in the Property (su::h as a proceeding in bankruptcy. prohate, for condemnatil)lI or to enforl:e lau.'.. or
<br />regulations.), then under may do and pay for whatever is nr:-ccss.ary 10 protect the ....alue of the ProperlY ami Lender'.. ngl1h
<br />in the- Property. Lender's actions. may include pa};ng an}' sums secured by a hen which ha!\ prlorny lI\'cr IllI', SC:\.'Urll)
<br />lnstrumenl. appearing in coun. paying reasonable attorneys' fees and entering on the Property 10 Illakt: r~rlllf'. AIlhl1u~h
<br />l..c:nder may take action under thi~ paragraph 7, Lender does not have to do so.
<br />Any amounts dIsbursed by lender under Ihis paragraph 7 shall become: additional dchl tlfBllrnl\\CT 't.'I.'ured l'l~ 1111'.
<br />Secun1)' lnstrumenl, llnlC$ Borrou,'er and Lender agree to other te-rm.. ofpa:J.,'menl, thoe urT\i.lUnl.. ..hall hl.".lf IIlll.'rl...1 !'fllll1
<br />the: dale of di!i.bunemenl at the: Not(: rate: and "hall he: pa)able. With interl:'l. Upiltl 0\1111;'(" fflml I t'mkr h' 1I"I'P\h"
<br />rcqut10tmg paymrnl
<br />If Lrndcr r~Ulrr.'d mnni:agC' tn'rurancc a\ a condition of making the hlao ..c\:un:d "'\ It1l" SC'..:Un1\ In..lnllTu'nl.
<br />BIlrfl,u,t"r 1ho111 p.1~ lht" premlUm!o r~ulrcd hJ nuuntDm the IOsurance in dfeet unnl..uch llTll.... ;1" Iht. '''~\llll'l1ll'1I1 till thl'
<br />111!our.mlo:r 1rrnu031C'-1Il ac,,'urdam:r Wllh B(lrrou,'er', and Lender'.. wrlllen ag,rr:enu:"nl m .'rrh,:uhlr 111\\
<br />8, In.prctlon. 1.C"nder or 11ft alcnt mal' make rea'UlIlal,kcnlnt""t ur"lIl11nd In''rl,."',:lhll\''' .,t It1\' 11"'1'1'11\ t ,'Ihlt'l
<br />dull' ~IH' U..Ju.lu,cr noll,c: al Iht" tlmr ur nr pnnr l{l an 1O'JK>1:lnlO ..~~~ In~ re:.l"l.1llahlc: \..:Ul.... fill till" lIl"'lCl,:t 11'11
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