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<br />88- 105581
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<br />UNIFORM CO\'E~^ "1 s Bnrro\\'cr lJnd Lcnder covenant and agree us fn!lO\\~'
<br />I. PII)'mcnt of Prlnc:lpaland Interest: Prcllayment Bnd Late ChorRcs. BorrowL'r !!ohllll promptly pay whcn due
<br />the pnnclpalllfund Intcrest on lhe debt c\'idcnc(d by the Note und llny prcpllymc:nlllnd lute chllrgc~ due under the Nole.
<br />2. Funds for Taxes and Insurance. Subjecc 10 applicable law or to II v,TiltCIl wai\'cr hy lender. Burrower ~hl1J1 pny
<br />10 Lender on the dny monthly payments arc due under the Note. untillhc Note is pBld in full. a sum ("Funds") equal to
<br />onc.lwelfth uL (n) yearly In:roes and assessments which may nOnin priority O\'er this Security Inslrumen!; (h) yearly
<br />leasehold payments or ground rents on rhe Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mongagc: insurance premiums, if any. These items are called "escrow items." Lender may estimate Ihe Funds due on the
<br />ba.'iis or current dara and reasonable estimates or future escrow item~.
<br />The Funds ~hall be held in an institution the deposits or accounts or which ure insured or guarunleed by n rederal or
<br />!'olate agene}' (including Lender if lender is such an institution). Lender shall apply Ihe Funds to pay the escrow items,
<br />Lender may nut charge for holding and applying the Funds, analyzmg the account or verifying the escrow hems, unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a churge. Borrower and
<br />lender may agree in writing lhat interest shall be paid on the funds. Unles... an agreement is made or applicable law
<br />requires interest 10 be paid, Lender shall not be required to pay Borrower any inlerest or earnings on the Funds, Lender
<br />shall give to Borrower, withoul charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debil to the Funds was made. The Funds arc pledged as additional security for the sums secured by
<br />rhis Securiry Instrument.
<br />If the amount of the Funds ht"ld by Lender, rogether with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required 10 pay the escrow items when due, the e,c;cess shall be,
<br />al Borrower's option, cither promptly repaid 10 Borrower or credited to Borrower on monthly payments of Funds, If the
<br />amounl orthe 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 onc or morc. payments as required by Lender.
<br />Upon paymenl in full of all sums secured by this Security Instrument, Lender ~hall promptly refund to Borrower
<br />any Funds held by lender. If under paragraph 19 the ProperlY is sold or acquired by lender, Lender shall apply, no later
<br />than immedialely prior to the sale of the Property or its acquisition by Lender. any Funds held by Lender at the time of
<br />application a.. a credit against the sums secured by this Security Instrumcnl.
<br />3. Application of Payments. Unless applicable law provides ntherwi!>e, all raymenls received by Lender under
<br />paragraphs land 2 shall be applied: first, to late charges due under the Note; !>ccond, to prepayment charges due under the
<br />Note; third, tn amounts payable under paTllgraph 2; fourth, to interest due; and lasl, to principal due.
<br />4, Chargcsj Liens" Borrower shall pay alllaxes, assessments, charges, fines and impositions attributable to the
<br />Property which may allain priori1y over this Security Instrument, and Icasehold payments or ground rents, if any.
<br />Borrower shull pay these obligations in the manner provided in paragmph 2, or if not paid in that manner, Borrower shall
<br />pay [hem on time direclly 10 the person owed payment. Borrower shall promptly furnish to Lender all nOlices of amounts
<br />to be paid under thiS parugraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipls evidencing Ihe pa'iment~.
<br />Borrower shull promptly discharge any lien which has priority ovcr thb Security Instrument unless Borrower: (il)
<br />agrees in ",'Ti[ing [n the payment nflhe obligation secured by rhe lien in a manncr acceptable to Lender; (b) contesls in good
<br />faith the lien hy, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operale to
<br />prevent the enforcemenl of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the Hen an
<br />agreement satisfactory to Lender \ubordinating the lien to this Security Instrument. If Lender delermines that any part of
<br />the Property is \ubJect W a hen which may attain priority over lhi!> Sccurity Instrument, Lender may gi\-c Borrower a
<br />notice idcmifying the hen. Borrower shall salisfy the lien or take one or more of the actions sct forth ahove within 10 days
<br />of [he giving ofnoticC'.
<br />S. Hazard Insurllnce, Hnrrower shaH keep the improvements now eXisting or hereafter erecled on the Propeny
<br />insured against los!> hy fire, hnl.ards included wi1hin the term "ex.tended coverage" and any other hazards for which Lender
<br />requires insurance. Thl!> IOsuruncc !>hall he maintained in the amounts and f()r the periods that Lcnder requires. The
<br />insurance carrier prmndmg the insurance shall be chosen hy Borrower suhject 10 Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance pohcll."lt and renewals shall be acceptable to Lender and shall include a slandard mortgage clause,
<br />lender shan have Ihe right to hold the policies and renewals. If Lender n:quir~, 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 ifnot made promplly by Borrowcr.
<br />Unless lender and Borrower otherwise agree 10 writing, insurance proceeds shull be applied to restonllion or repair
<br />of the Property damaged, if rhe n:storation 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 shall be
<br />applied to the sums secured hy 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 duy~ a notice from Lender thut the insurance carrier has
<br />offered 10 seule a claim. then Lender may collecl the insurance prm:ecds. Lender muy use the proceeds 10 repair or restore
<br />the Property or ro pay sums secured by this Sccunty Instrument, whether or not then due. The JO-duy period will begin
<br />when the nolice is given.
<br />Unless Lender and Borrower otherwise agree in writing, an}' applicalion of proceeds to principal shull not e~tend or
<br />postpone the due date oflhe monthly payments referred to in paragraphs I and 2 or change Ihe amount oflhe payments. If
<br />under paragraph 19 the Property is acquired by lender, Borrower's right tn any insurance policies and proceeds resulting
<br />from damage 10 the Property prior to the acquisition shall pass 10 Lender to the extcnt uflhe sums secured by this Secunty
<br />Instrumenl immediately prior to the acquisilion.
<br />6. Preservation and Maintenance of Property; Leaseholds, Borrower shall not destroy, damage or suhstantially
<br />change the Propeny, aHow Ihe Property to deteriorate or commit wa..'ilc. It lhlS SC'cunty lnstrumenr i~ on a leasehold,
<br />Borrower shal1 comply with Ihe provisions of the lease, and if Borrower acquire!> fee tille to [he Property, the leasehold and
<br />fee tirh: shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; MortpR;c Insurance, If Borrower fatls to perform the
<br />covenants and agreements contained in this Security Instrument, or therc 1\ a legul proceeding that may slgllllh.:antl}' affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy. probate, for condemnalion or In enforce laws or
<br />rcgullll1olls).lhen Lender mal" do and pay for whatever is necessary 10 prolcl.'t the I.uluc oi1he Property und Lcnder\ rights
<br />10 tht: Properly. Lender's acllons may include paying any sums secured hy a lien which has pnnTlly o\'er this Security
<br />Instrumenl, appeanng in cflurl, paying reasonable attorneys" fee~ and entenng nn the Property tll make fl.'plllP,. Although
<br />lnJder mllY take aClion under Ihis paragraph 7, LCl1derdo~ not ha....e to do ~l).
<br />An)' amounts dlshursed hy Lender under Ihl!. paragraph 7 ~hall hecome addlllOnal debt of BtlrnlV,l'r ..ccurl"tJ h) thl"
<br />Seeunt)' Instrument. llnle'!\!!o Borrower and Lcnder agree 1(1 other term, of payment. thc..e ilTtHlunh ..hall hl'lH mlerc..l fflllll
<br />(he d:ale of dlsbu~elll al tht' Nolt" rate and ..hall he: pa)ahlt"'. uollh 1II1l"rl""ol. upon nollce !"fnOl It'IHh:f hi Btlrrll\\l'1
<br />requ~t1np: payment
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