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<br />UNIf()~M COVENAN1S Uorrowcr and LClldcrcm,'ennnl and "crce U~ follnw~: 88-105632
<br />I. P:lyment of Principal ond Interest; Prcpo)'ment Bnd Lute ChnrRcs. Borrower shall promplly PIlY when duc
<br />Ihe pnnr:ipal ofnnd inlerC!'it on lhe debt evidenced by Ihe Note ilnd any prepayment llnd laic chnrges due under Ihe NOle.
<br />2, Funds for Taxes and Insuroncc, Subjecllo IIp'plicabl! law or to Il writlcn waiver by Lender, Borrower shull pny
<br />10 Lender on the day monchly paymcnb arc due under the Not~. uncil thc Note i!! paid in rull. n ..urn (..Fund....) c'Iunl tn
<br />one.twe:lllh of: (a) yearly taxes and Ilssessmencs which mllY altnin priority ovcr thi~ Security Instrumenl; (b) yearly
<br />leasehoJd payments or ground renls 011 the Property, if any; fc) yearly hazurd insurancc premiums.: und (d) ycurly
<br />mortgage insurance premiums, if uny. These items are callt.-d "c~crow items." Lcndcr may estimatc t he Funds due on the
<br />bnsis of current duta and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or Ilccounl~ of which IJre insured or guaranteed by a federlll or
<br />slate agency (including Lender if Lender is such an instilution), Lender shallllpply the Funds to PIlY the escrow itcms.
<br />Lender may not charge for holding and applying the Funds, unalyzing the accounl or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender 10 make such a charge. Borrower and
<br />Lender may agree in writing Ihal interest shall be paid on the Funds, Unless an agreement is made or applicable law
<br />requires interest It) be paid. Lender shall not be required to pay norrower any interest or earnings un the Funds. Lender
<br />shall give to Borrower, without charge, an Ilnnual accounting of the Funds showing crediLs and debits 10 the Fund!' ilnd the
<br />purpose for which each debit to the Funds \Vas made. The Funds arc pledged as additional security for the sums ~ccllred 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 dales of the escrow i[ems. shaJl exceed the amount required to pay the L"ScrO\\' 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 whcn due, Borrower shall pay tn 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 thi!! Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph I Q the ProperlY is sold or ucquired by Lender, Lender shall apply, no later
<br />than immediately prior to the sale of the Property or lis acquisition by Lender, any Funds held by Lender althe time of
<br />appliClllion as a credit against the sums secured by this Security Instrument,
<br />J. Application 0' Payments. Unless applicable law pro....ides otherwise, all paymenls n:cei\!ed by Lender under
<br />paragraphs 1 and 2 shall be-applied: first, to laic chargl.'S due under the Note; second, to prepayment charges due under Ihe
<br />Note: third, 10 amounts payable under paragraph 2; fourth. 10 irucrest due; and 11L~I, to principul due.
<br />4. Charges; Liens. Borrower shall pay all taxes, nsscssmenls, charges, fines and imposilions attributable tn the
<br />Property which may attain priority over this Security Instrument, and leasehold payment~ or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, (Ir ifnnt paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to lender allnoticL"S of amounts
<br />10 be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing lhe payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Inslrumcllt unless Borrower: (a)
<br />agrees in wriling to Ihc payment of the obligation secured by the lien in:\ manner IIl'l'eplable to Lender; (b) contests in good
<br />faith the lien by, nr deft:nds against enforcement of the lien in, legal proceeding!'! which in lhe Lender's opinion operate to
<br />preveD1 the enforcement of1he lien or forfeiture of any parI of the Property: nr (c) secures from Ihe holder of the lien an
<br />Ilgreemenl satisfaclory to Lender subordinating the lien to this Security In'ilrUmenl, If Lender delermines that any part of
<br />the Propcr1y is subject 10 a lien which may altain priority over this Securit~, In:-.lrumelll. Lender may give Borrower a
<br />nohcc identifying the- lien. Borrower shall satisfy the lien or lake one or more oCthe acti(ln:o. :'let forth above within 10 days
<br />oCthe giving ofnOlice.
<br />5. Hazard In5urance. Borrower shall keep the improvemcllh now exi~llIIg or hcrrafter erected on Ihe Propert)'
<br />insur~ against loss by fire, hawrds included within the term "extended co\'erage" and uny olher hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts und for the period!'! that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subjecl In Lcnder'<.; approval which shall not be
<br />unreasonably wilhheld,
<br />All insurancl' polici~ llnd renew:lIs shall be acceptable to Lender and shlllllllclude a standard mortgage clause.
<br />Lender shall have [he right to hold the policies and renewals, If lender require!l, Borrower shall promptly give to Lender
<br />all receipts of paid premiums. and rcn~wal notices. In the event of loss, Borrower shall gi\'e prompt notice 10 the insurance
<br />carrier and lender. Lender muy make proofofJoss ifoot made promptly by Borrower.
<br />Unless Lender nnd Borrower otherwise agree in wriling, insurance proceeds shall be applied to resloration or repair
<br />of the Propcny damaged, if the rL"Storation or repair is economicaJly feasible and Lender's security is not lessened. 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 Ihe sums secured b)' this Security Instrument, whether or not then due, \\,'ith any excess paid to Borrower. If
<br />Borrower abandons the Property, or docs not answer within 30 days a notice from Lender that the insurance carrier hus
<br />offered to settle I) claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Propeny or to pay sums secured by Ihis Security Instrument, whelher or no[ then due. The 30-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower olherwise agree in writing, an)' application of proceeds to principal shall not eJHend or
<br />postpone the due date of the monthly payments rdern:d to in paragmphs 1 and 2 or change Ihe amounl of the pl)yments. 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 acquisition shall pass to Lender to the extent oflhe sums ~ccured by lhis Security
<br />Instrument immediately prior 10 the acquisi'.ion.
<br />6. Preservation and I\'Iaintenance of Property; l..eJlseholds, Borrower shall not deslroy, damage or substantially
<br />change the Property, allow the Propeny to deteriorate or commit waste. If this Security Instrumenl is 011 a leu!>ehold,
<br />Borrower shall comply wi[h the provisions oflhe lease, and if Borrower acquires fee title to the Proper1y, the leasehold and
<br />fee titJe shall nol merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rigbts in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreemenls contained in Ihis Security Instrument. or there is a legai proceeding that may significantly affect
<br />Latder's righls in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce 13\\'~ or
<br />regulations), then Lender may do and pay for wh..tever is necessary to PJlJtecllhe \'alue of the Property nud lender', righi'
<br />in the Propeny. Lender's action~ may include paying any sums secured by a lien which hu, prionty ll\Cr lhi, Secunty
<br />Instrument, appearing in coun, paying reasonable attorncys' fees and entering on the Propeny In mllkr: repair". Althnugh
<br />Lender may take action under Ihis paragraph 7, Lcnderdoes 1101 ha\'e to do so.
<br />Any amounts dl!obuncd by Lender under this paragraph 7 shall become additional debt of Borrower ..ecured by Ihi..
<br />~urilY Instrumenl. Unl~\ norrower and Lrndrr agree 10 l1thertc:rm!o nfpa)'menl, th~ nmounl'l ..hilll hcar II1terest fnlm
<br />the dale of disbun.emc:nt Of Ihe Note rate and ""hall be pa)'ahle, with interC'!lt. uron Itnlll.:'l' fn,m Lemler Itl Rorro\\cr
<br />rtqul!51JnB pa)lmenl
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