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<br />88-105829
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<br />UNIFORM COVEN^~TS Borrower and Lcndcrc(lvcnanl nnu ngrl'C ll..lilllll\\'
<br />I. Parmcnt or Principal and Interest; Prepayment oDd Lotc Char~cs. Btlrrll\\'l'f ..hllll prumpll)o puy when due
<br />the principal orund interest on the debt evidenced by the Note and IIn} prcpaYlllclIllIllU lUll' \.'hltr~c., due under the NOll'.
<br />2. Funds for Taxes Dnd Insurance. Subjccllo applicable III"' or W U \\Tlllen W!llver h) l.ender. Borrower ..hall PlI)
<br />to Lender nn the day monthly payments arc due under lhe Note, Ul1lillhl' Note i.. palu in rull. a !o.lllll ("Fund!<o", ClJUlIllO
<br />onc-Iwelflh of: (n) yearly luxes and assessments which muy attain prinTil)" ovcr lhi!>. Securily Instrulllent; (b) yeur!)
<br />leasehold payments or ground rents on Ihe ProperlY, if any; Cc) yearly hllzard il1!turam:c premium!.; Ilnd (d) YCilrl)
<br />mortgage insurance premiums, if any. These items are called "cscrow ilem"." Lcnder mll)' estimate the Fund!. due on I he
<br />basis of current datil and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by 11 fedcr:li or
<br />stDle agency (including Lender if Ltnder is such an institution). Lender shall apply the Funds 10 pay the escrl)l,l,' ilcm!o.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unlcs~
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower tlnd
<br />lender may agree in writing thai 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 gh'c to Borrower, withoul charge, an annualllccounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds wus made. The Funds are pledged as additional 'lecurity for the sum!-o secured by
<br />this Security Instrument.
<br />If the amount of Ihe 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 amounl required 10 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 of the Funds held by lender is not sufficient 10 pa)l 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 fuJJ of all sums secured by this Securily lnstrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, lender shall apply, no later
<br />Ihan immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by lender at the time of
<br />application us a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law proyides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note: second. to prepaymenl charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4, Chargesj Liens, Borrower shaU pay all taxes. assessments, charges, fines and impositions attrihutable 10 the
<br />Properly which may attain priority over this Securily Instrument. and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligalions in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment, Borrower shalI promptly furnish to Lender all notices of amounts
<br />to be paid under this pnragraph. If Borrower makes these payments directly, Borrower shall promptly fumi~h to Lender
<br />reccipt~ evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over Ihis Security Instrument unless Borrower: (a)
<br />agrees in writing La 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 of the lien in, legal proceedings which in the lender's opinion operate to
<br />prevent .he enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. ]f Lender detennines that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set fanh above within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Prapeny
<br />insured against los.~ by fire, hazards included within the tcrm "eJLtended coverage" Ilnd any olher hazards for which Lender
<br />requires insurance. This insurance shan be maintained in lhe amounls Ilnd 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 nal be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shalJ include a standard mongage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the evenl of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof onoss irnol made promptly 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 rcpair is economically 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 shaH be
<br />applied to the sums secured by this Security Instrumenl, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Properl}', or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collecl the insurance proceeds, Lender may use the proceeds 10 repair or restore
<br />the Property or to pay sums secured by Ihis Security Instrument, whether or not then due, The 30~day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds 10 principal shall not extend or
<br />postpone the due date oflhe monthly payments referred to in paragraphs I and 2 or change the amoum of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's righl to nny insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to lender hl the c"tent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance or Property; Leaseholds. Borrower shull nol destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit we!!.te. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower Llcquire.', fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing,
<br />7. Protection 01 Lender's Rights in the Property; l\IortgaRc Insurance, If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there i!!. u legal proceeding that may significantly affect
<br />Lender~s rights in the P.roperty (such as a proceeding in bankruptcy. probate, for condemnalion or to enforce laws or
<br />regula1ions),lhen Lenderma)' do and pa)' for whatever is nccCisilry to prolect Ihe value of the Propert)' and Lender's rights
<br />1n the Property. Lender's actions may include paying any sum') secured by a lien which has priori1Y over this Security
<br />Instrument, appearing in coun, paying reasonable attorneys' fees and entering on the Property 10 make repairs. Although
<br />Lender may take action under this paragf.'lph 7. Lender does not halo'c to do so.
<br />An)' amounls disbursed by Lender underthis paragraph 7 shall bl"come additional debl of Borrower !'tIXured by Ifm
<br />Security Inslrument Unless Borrower and lender agree to other teml!> of payment, Ihc!-oe amounts shall hellr IIlIe-n~!!.t fn,"l
<br />the dale of disbursement al the Note rule Llnd shall be pll)'Bhle, with tole-resl. upon notice: from Lende-r III Rllrrowcr
<br />requestlllg pa)lI1"tll.
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