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<br />llSIFORM COVENANTS. DOI"rower und Lender covenunt and agree as follows:
<br />. 1, Payment of Principal and Interest; Prepayment Bnd l..ote Char~e5. Borrower shull promptly pay whcn duc
<br />the principal orand interest on the debt evidenced b:r the Notc and any prcpayment and laic charges due under Ihe Nole.
<br />2. Funds for Taxes ond Insurance. Subject to applicable law or to a writlen waiver by l:.ender, Borrower shall pay
<br />to Lender on the day monthly payments arc due under the Note. untillhe Note is paid in full, a sum ("Funds") equal to
<br />one~t\Vemh of: (al yearly laxes und assessments which may attain priorily over this Security InstrufTlent; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly har.urd insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These ilems are called "escrow items." Lender may estimatc the Funds due on Ihe
<br />basis of current data 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 a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the aL:count or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law pennits Lender to make such a charge. Borrower and
<br />Lender may agree ill writing that interest shan be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required 10 pay Borrower any interest or earnings on Ihe Funds. Lender
<br />shall give to Borrower. without charge. an annual accounting ohhe Funds showing credits and debits 10 the Funds and the
<br />purpose for which each debit to the Funds wa'i made. The Funds are pledged as nddilional 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 dates of (he escrow items, shan ex.ceed the amount required to pay the escrow items when due, the ellCCSS 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 whc:n 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, Lender shall apply, no later
<br />than immedialely prior to the sale of the Property 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. Applicotion or Payments. Unless applicable law provides otherwi~e, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note; !'.econd. to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last. 10 principal due.
<br />4. Charges; Liens. Borrower shall pay alllaxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument. and leasehold payments or ground ren1s, if any.
<br />Borrower shall pay these obligations in the manner provided in paraglaph 2. or if nol paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all nOlices of amounts
<br />10 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 promptly discharge any lien which has priority over Ihis Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith Ihe lien by, or defends against enforcement of the lien in, legal proceedings which in the lender's opinion operate to
<br />prevent the 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 Inslrument. Irlender determines 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 forth above within 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvemenls now existing or hereafter erected on the Property
<br />insured againslloss 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 shaH be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include u 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 give prompt notice to the insurance
<br />carrier and lender. Lender may make proof ortoss ifnot 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 repair is economically feasible and lender's security is not lessened. If the
<br />resloration 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 nol then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property. 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 collect the insurance proceeds. Lender may use the proceeds to repair or res:ore
<br />the Property or to pay sums secured by this 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 to principal shall not extend or
<br />postpone the due date oftbe monthly 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 any insurance policies and proct.ocds resulting
<br />from damage to the Property prior to the acquisition shall pass 10 Lender 10 the extent oflhe sums secured by this Securily
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or subslanti.lily
<br />change the Propeny, allow the Property to deteriorate or commit waste. If this Securily lnstrumenl is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title 10 the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Wghts in the PropertYi Mortgage Insurance. If Borrower fails In perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legul prol.:ceding thut muy significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or 10 enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value oflhe Property and lender's righls
<br />in the Property. Lender's aClions may include paying any sums secured by a lien which has prioril)' over this Securit)'
<br />Instrument. appearing in court, paying reasonable attorneys' fees and entering on the Properl}. 10 make repairs. Although
<br />Lender may take action under this paragraph 7, lender does nol have to do so.
<br />Any amount" disbursed by lender under this paragraph 7 shall become additional deht of Burrower ~ecured h,y I hiS
<br />Security Inslrument. Unlc!<os Borrower and lender agree to other lerms of payment, these amOUII{S ..hall hear intcre...t rnl1l1
<br />the dale of disbursement at the NOll.' rale and shall be payable. with illlercsl. upon noticc fn1l11 Lender III nnrrowcr
<br />'requesting payment.
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<br />If Lender rcquired murtgage insurance as a condition of making Ihe loan ...ecurcd hy tln.. SCL"urity Instrument.
<br />Bllrrowt.'r ..Ilall pa) Ihe premiums required to maintain the insurance in effecl untll..,uch IlIllC a... the rC4ulfl'rnt'nl I"tlr lht'
<br />Im,UfiUll."C lermmlllC!o In accordance with Borrower's and Lender's WTlltell agreemenlm Ilpphcllhle la\\
<br />H. In~pccd()n. Lender or it!t agent may make reasonable enlri&..'!'o UPUII lllld lJI!tpcl:llun... 01" lilt' I'I"pt'rI~ !l.lllk,
<br />..hull ~I"ie Burrower fllltICC alllte time or or prior to an H1speclion speCIfYing reu!ounllhlc 1.:1111...(' fur I hl 111"I1l't.llllll
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<br />88-105937
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