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<br />88- 105841
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<br />UNII;PRM Co\'ENAN'lS. Borrower nod Lender covennnt nnd ngrcc 1I!\ follow'l:
<br />I. Payment of Principal and Interest; Prepayment Bnd Lute Charges. nnTrower shull promptly PIlY when due
<br />the principal of and interest 01l1hc debl evidenced by the Note and any prcpaymcnll1nd Inle charges due under the Note.
<br />2. Funds for To:ccs and Insurance. Subject to applicnble lnw or to u written wniver by Lender. Borrower 511011 PIlY
<br />to lender on the: dny monthly payments ure: due under the Note. u"tillhe Note i'i paid in full. II sum ("Funds") cquullo
<br />one-lwelfih of: (8) yearly tuxes and assessments which mny nltnio priorily over this Sccurily Instrument: (b) yenrly
<br />leasehold payments or ground rents on the Property, if anYi (c) yearly hazard insurance premiums: and (d) yearly
<br />mongngc insumnce premiums. if any. These items are colJed "escrow items." lender may estimate Ihe Funds due on the
<br />basis of curren I data and rea.'ionable estimates offuture escrow items.
<br />The Funds shall be held in an institution the deposits or accounts ('If which arc insured or gunnmteed by a federal or
<br />stote agency (including lender if Lender is such an institution). lender !<ohall apply the Funds to pay the escrow items.
<br />Lender may nol charge for holding and applying Ihe Funds, analyzing the account or verifying the escrow items. unless
<br />Lender pays Borrower interest on 1he Funds and applicable law permits Lender to make such a charge. Borrower and
<br />lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires intert.'St 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 Fund!-l are pledged as additionnl security for the sums secured 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 datcs of the escrow items. shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />a1 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 pay the escrow items when duc, Borrower shall pay to lender any
<br />amount neces.'iury 10 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 shull promptly refund 10 Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by lender, Lender shall apply. no Inter
<br />Ihan immedialely prior to Ihe !-laic of Ihe Property or its acquisition by Lender, nny Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />J. Applicution or Payments. Unless applicable law provides othcrwi!lle.1l11 pll)mcnts received by Lender under
<br />paragraphs I nod 2 shall be applied: first. to late charges due under the Note: second. III prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourlh, to interest due: and lust, to principal dUe.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charge!<o, fines lIud imposilions attributable to the
<br />Property which may altain priority over this Security Instrument, and leaschnld payment!<o tlr ground rents, if any.
<br />Borrower shall pay these obligations in the mUl1ner provided in paragraph 2, I'r if nul paid in Ihul mlll1nCr, Borrower shall
<br />pay them on time directly 10 the person owed payment. Borrower shull promptly furni!<oh 10 lender ull nolices of amounts
<br />10 be paid under lhis paragraph. If Borrower makes these payments directly, Borrower ..hull promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over Ihis Sccnrily lllstrument unless Borrower: (a)
<br />agrees in writing to the paymenl oftbe obligation secured by the lien in a manner acceplable to lender: (b) conlcsts in good
<br />failh Ihe lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent 1he enforcement of Ihe ljen or forfeiture of uny part of the propen)'; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender del ermines that any part of
<br />the Property is subject to Ii. lien which may attain priority over this Security Inslrument, lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of tile actions set forth above within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now exisling or hereafter erected un Ihe Property
<br />insured against loss by fire, hazards included wilhin 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 npproval which shnll not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable 10 lender and shall include a standard mortgage 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 event of loss, Borrower shall givc prompl notice to the insurance
<br />carrier and Lender. lender may make proof of loss ifnol made promplly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applit..-d to restoration or repair
<br />of lhe Property damaged, if the restoration or repair is economically feasible and Lender's security is not Icssened. If the
<br />resloration or repair is not economically feasible or lender's security would be lessened. the insumnce proceeds shall be
<br />applied to Ihe sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Propeny, or does not answer wilhin 30 days a nOlice from lender that the insurance carrier has
<br />offered to settle a claim, then lender may collect the insurance proceeds. Lender may use the proceeds 10 repair or restore
<br />the Properly or 10 pay sums secured by this Security Instrument, whether or not then due. The 30.dny period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise ngree in writing, any applicalion of proceeds 10 principal shall not extend or
<br />postpone the duednte ofthemonlhly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to Dny insuranc~ policies and procceds resulting
<br />from damage 10 lhe Propeny prior to the acquisitlon ~halI pass to Lender to the extent oflhe sums secured by this Security
<br />Instrument immedia1eIy prior to the acquisition.
<br />6. Presenadon and Maintenance of Properlyi Leoscholds. Borrou.'cr shall nol dl.'Stroy. damage or substantially
<br />change Ihe Property, allow Ihe Property to deteriorate or commit waste. If this Security 1nstrument is on a leasehold.
<br />Borrower shall comply wilh the provisions of the lease, and if Borrower acquires fee titlc to the Property. the leasehold and
<br />fee: litle shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Prop~rty; Mortgage Insurance. If Borrower fails to perform Ihe
<br />covenanls Bnd agreements contained in this Security Instrument, or there is a legal proceeding thai may significan!ly affect
<br />Lender's rights in the Propeny (such BS a proceeding in bankruptcy, probale, for condemnalion or 10 enfon:c laws or
<br />regula1ions), Ihen Lender may do and pay for whatever is necessary 10 protect Ihe value of Ihe I1roperty 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 Security
<br />Inslrument. appearing in court. paying r~5onable attorneys' fees and entering on the Property to make repairs. Allbaugh
<br />Lender may lake aclion under this paragraph 7, lender does nol have (0 do so.
<br />Any amounts disbursed by lender under this paragraph 7 shall bccome additional debt of Borrower sccured by this
<br />. Security Instrument. Unless Borrower and lender agree to other tenns of payment. lhese amounts shall bear interesl from
<br />the date of disbun.emcnt at 1he Note ratc: and shall be paynhle. wilh inlerest, upon notice from Lender to Borrower
<br />requC'Sling payment.
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