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<br />UNIFORM COVENANTS Borrower and Lender covenllltlnd Igree as follows:
<br />I. Pa)"IMnl of PrIncipal and Inl.r..l; ProJlllym.nl and Lot. Chara... Borrow.r shall promplly pay when due
<br />thr principal of and intel'ftl on the debt evidenced by the NOle Bnd any prepaymeru and 'ole chnrges due under the NOle.
<br />Z. Fundi lor Tal.. and InlUrant.. Subjecllo applicable law or 10 a wrillen waiver by Lender, Borrower shall pay
<br />10 Lender on the day monlhly payment. ar. due under the Note, umillhe NOle is paid in full. a sum ("Funds") equal 10
<br />onc-twdfth of: (I) ye.rly taxes Bnd assessments which may attain priority oyer 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 />monaqe lnsW'aDce premiums, if any. These items arc called "escrow items, ,. Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates or future escrow items,
<br />The Funds shall be held in an institution the deposils or accounts of which are insured or guaranleed by a federal or
<br />state agency (including Lender if Lender is such an instilulion), Lender shall apply the Funds to pay Ihe escrow items,
<br />Lender may not charge for holding and applying the Funds, ana.Jyzing 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 writinS that interest 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 are pledged as addilional security for Ihe sums secured by
<br />this S<curity Instrument,
<br />!ftbe amount of the Funds held by Lender, tngether with the future monlhly payments of Funds payable prior to
<br />the due dates onhe escrow items, shall tJlceed Ihe amount required to pay the escrow items wh.n due, Ihe excess shall be,
<br />al Borrower's option, eitber promplly repaid to Borrower or credited 10 Borrower on monthly payments of Funds, If the
<br />amount 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 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 Propeny is sold or acquired by Lender. Lendershall apply, no laler
<br />than immediately prior to the sale of the Properly 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. AppliealiOD of Paymmlll, Unless applicabl. law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: fi..~ 10 late charges due under the Note; second, to prepayment charges due under the
<br />Nole; third, to amounts payable under paragraph 2; fnurth, 10 inleresl due; and lasl. 10 principal due,
<br />4. Qaraea; U..... Borrower shall pay allwes, assessments. charges, fines and imposilions allributable to the
<br />Property which may altain prinrity over this Security Instrument, and leasehold payments or ground rents, if any,
<br />Borrower shaD pay these obligations in the manner provided in paragraph 2. or irnot paid in that manner, Borrower shall
<br />pay them on lime direclly 10 Ihe person owed payment, Borrower shall promplly lurnish 10 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 />receipts evidencing the payments,
<br />Borrower shall promplly discharge any lien which bas priority over this Securily Inslrument unless Borrower: (aJ
<br />agrees iD writing to the payment of the obligation secured by the lieD in a IDanDer acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in. legal proceedings wbich in Ihe Lender's opinion operale to
<br />preventlbe enforcement of Ihelien or forfeilure of any pan of Ihe Pmperty; or (c) secures from Ihe holder of Ihe lien an
<br />agreement satisfactory to Lender subordinaling the lien to this Security Inslrument. If Lender delermines thaI any part of
<br />lbe Property is subject 10 a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying lbelien, Borrower shall satisfy Ihelien or lake one or more of the actions set forth above wilbin 10 days
<br />of the giving ofooti...
<br />5. Hazard IDauruc:e. Borrower shaH keep [he 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 wilbheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the rigbtto hold lbe policies and renewals. If Lender requires, Borrower shall promptly give 10 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 ofloss if not made promplly 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 />restoration or repair is not economically feasible or Lender's securilY would be lessened. the insurance proceeds shall be
<br />applied to lbe sums secured by this Security Instrument, wbelber or nol then due. with any e.cess paid to Borrower, If
<br />Borrower abandons the Property. or does not answer within 30 dB.Ys a notice from Lender that the insutance carrier has
<br />otrered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />tbe Property or to pay sums secured by lbis S<curity Instrument. whether or nol then due, The 3O-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 extend or
<br />postpone the due dale orthe monthly payments referred 10 in paragraphs I and 2 or change the amount oflhe 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 Propen:) prior to the acquisition shall pass 10 Lender 10 the extent of the sums secured by this Security
<br />Instrumenl immediately prior 10 the acquisition,
<br />6. ~D1l aad Malat......... of Pl'OIltI1W; Leuebol..., Borrower shan not destroy, damage or SUbstantially
<br />chanse the Property, allow the Propeny to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions orlhe lease, and if Borrower acquires fee title to the Propeny, the leasehold and
<br />fee title shall not mera;e unless Lender agrees to the merger in writing.
<br />7. ProtectIon of Leader.. R1abh in lb. PnIperty; Mort_ InlOran.... If Ilorrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in tbe Property (such as a proceeding in bankruptcy, probate:. for condemnation or to enforce laws or
<br />rqulatiom), then Lender may do and pay for whatever is necessary to protecl the value of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over Ihis Securily
<br />IDSl..rument, appearins in coun, paying reasonlble attorneys' fees and enlenng on the Propeny 10 make repairs. Although
<br />Lender may take action under this paragraph 7, Lender does not have 10 do so
<br />Any amounts disbursed by Lender under this panlIraph 7 shall become addnional debl of Borrower secured by Ihis
<br />Security Instrument. Unless Borrower and Lender agree 10 other terms of payment. these amounts shall bear interesl from
<br />lh.:: date or disbunement .1 the NOle rale and shaU be payable. wllh mleres!. upon noUce from Lender 10 Borrower
<br />requuunl payment.
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<br />88-105597
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