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<br />UNlFORM COVENANTS, Borrower and Lender covenant and agree as folJows:
<br />I. l'o)'llle.1 of PrI.cipll\ IIIId [.......1; Prepayment IIIId Late Charges. Borrowcr shall promptly pay wh.n due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late chargcs due under the Note.
<br />2. Fundi for TUelaDd Insurance. Subject to applicable law or to a wrinen waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note. until the Note is paid in full, a sum ("funds") equal to
<br />oneetwelfth of: (II) yearly lU6 and assessments which may attain priority over this Security Instrumentj (b) yearly
<br />leasehold paym.nts or ground renlS on the Property. if any; (c) y.arly hllZllrd insuranc. pr.miums; and (d) y..rly
<br />mortp&e insurance premiums, if any. These items are caUed "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates offuture escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />stal. agency (including Lend.r if Lend.r is such an institution). Lend.r shall apply ,h. Funds '0 pay th. escrow it.ms.
<br />Lender may nol charge for holding and applying th. Funds, analyzing th. accounl or v.rifying the escrow items, unless
<br />Lender pa)" llorrow.r interesl on th. Funds and applicabl. law permilS Lender '0 make such a charge. Borrow.r and
<br />Lender DUly agree in writin'g that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shaH not be required 10 pay Borrower any interest or earnings on the Funds. Lender
<br />sJWl g!ve to Borrower. without charge, an annual accountins oflhe Funds showing credits and debits to the Funds and the
<br />purpose for wbich each debil to the Funds was made. The Funds are pJedged as additional security for the sums secured by
<br />this Secnrity InSlrumenl.
<br />[f th. amnunt oflh. Funds h.ld by Lend.r, tog.ther witb ,h. future monthly paym.nts of Funds payabl. prior to
<br />the due date!: of the escrow items, shall exceed the amounl required to pay the escrow 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 ortbe Funds held by Lender is not sufficient to pay the escrow items when d~ Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one or morc payments 8S required by Lender.
<br />Upon paymenl io full of all sums secured by this Security Instrum.n" Lender shall promplly r.fund to Borrow.r
<br />any Funds held by Lender. [f und.r paragraph 19 Ih. Propeny is sold or acquired by Lend.r, L.nd.r shall apply, no lat.r
<br />than immediately prior to the sale of the Propeny or its acquisition by Lender, Bny Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Applicatlo. of Payments. Unless applicabl. law provides o'h.rwise. all payments rec.ived by Lend.r und.r
<br />paragraphs 1 and 2 shall be applied: first. to lat. charges due und.r the Not.; second. 10 pr.paym.nl charges due und.r the
<br />Note; third, to amounlS payabl. und.r paragraph 2; founh, to int.rest du.; and last, 10 principal du..
<br />4. CIwats; !JODI. Borrow.r shall pay all taxes, assessments. charges, fines and impositinns attributable to th.
<br />Property which may attain priority oyer this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay tbese obligations i'n the manner provided in paragraph 2, or if not paid in that manner, Borrowcr shall
<br />pay Ihem on time directly to the person owl:d paymenL Borrower shall promptly furnish to Lender all notices of amounts
<br />'0 be paid under tbis paragraph. [f Borrow.r makes these payments direclly, Borrow.r shall promptly furnish to Lend.r
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agroes in writing 10 th. payment of the obligation secured by th.li.n in a mann.r acceptabl. 10 Lender; (b) con'ests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enfnrcement of th.lien or forf.iture of any pan of the Propeny; or (c) secures from th. hold.r of Ih. lien an
<br />agreemen, satisfactory to Lender subordinaling Ih.lien to Ihis Securi'y Inslrum.nt. If Lend.r d.t.rmines thai any pan of
<br />the Propeny is subject to a lien which may attain priority over this Security Instrument. Lender may give Borrower a
<br />notice idenlifying th.li.n. Borrow.r shallsalisfy Ih.li.n or take on. or more oflh. actions..t fonh abov. within 10 days
<br />oftbe giving ofnoticc.
<br />5. Hazard;in.nraace.. Borrower shall keep thc improvements now eXisting or hereafter erected on the Propcny
<br />insured apinst loss by fire. hazards included within the tenn "'extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shaD be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrowrr subject to Lender's approval which shalJ nol be
<br />nnreuonably withh.ld.
<br />All insurance policies and r.n.wals shall be acceptabl. 10 Lend.r and shall includ. a standard mongag. clause.
<br />Lender shall have the righllo hold th. policies and renewals. IfLend.r requires, Borrow.r shall promp'ly give to Lend.r
<br />all receipts of paid premiuma and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lend.r. Lender may make prooforIoss ifnot mad. promptly by Borrow.r.
<br />Unless Lender and Borrower otherwise agree in wriling, insurance proceeds shill be applied to restoration or repair
<br />of lhe Property damaged, if th. restoration or repair is economically feasibl. and Lend.r's securilY is nOI I....ned. If Ih.
<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 by this Security Instrument, whether or not then due, with Bny cxcess paid to Borrower. If
<br />Borrower abandons the PropenYl or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />oII'ered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Prnpeny nr 10 pay sums secured by ,his Security [nstrumenl, wh.lher or no' ,h.n du.. Th. 3O-day period will begin
<br />when the nOlice is given.
<br />Unless Lender and Borrower otherwise agrct in writing, any application ofp~sto principal shalJ not extend or
<br />postpone the due date oflhe monthly payments referred to in paragraphs I and 2 or change the: amount or the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower', right 10 any insurance policies and proceeds resulting
<br />from damage to the Property prior to tbe acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Pratnation IIIId MalnlttWIee of ProptrJr; Leueholds. Borrow.r shall nol destroy. damage or subslanlially
<br />chanJe the Property, allow the Property to deteriorate or commit waste. If this Security Instrumenl is on a leasehold.
<br />Borrow.. shall """'ply wilh ,h. provisions onh.l..... and if Borrower acquires f..UlI.to the Propeny. 'h.l....hold and
<br />fee title aba1I not merse unless Lender agrees to the merger in writing.
<br />7. Proltcllo. of Leader'. High.. in Ibe Property; MO.....1Jt Insura.ee. If Borrow.r fails to perform the
<br />eoVe:nanb and agreements contained in Ihis Security Instrument. or there is a legal proceeding that may significantly affect
<br />Lender's nabts in the Propeny (such as a proceeding in bankruptcy. probate, for condemnalion or to enforce laws or
<br />reguIa'ions), tben Lender may do and pay for whalever is n......ry 10 proteclth. valu. ofth. Property and Lend.r's rights
<br />in the Property. Lendu's .clion. may include paying any sums secured by a lien which has priority over this Security
<br />Instrument. .ppcarina in coun, paying, rcuonabJe attorneys' fees and entcring on the Propeny 10 make repairs. All hough
<br />Lender may lake action under this pat1lgraph 7, Lender does not have to do so,
<br />AllY amounts disbuned by Lender under this paragraph 7 shall become addilional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree 10 olher terms of payment, lh~ .rta6~nts S~BlJ bear inleresl from
<br />the elite of disbunemcot at the Note ralc and shall be payable, with Interest. upon notice (fOm Lender to Borrower
<br />reqUCStlnl payment.
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<br />88-105734
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