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<br />88- 10594"-
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I. Poymeat of Principal and Int.....t; PreJlllym.nt and Lat. Charg... Borrower sholl promptly pay when due
<br />the principal orand interest on the debt evidenced by the Notc8nd any prepayment and late charges due under the Nole.
<br />Z, Funds for Tun and Insurance. Subjcct 10 applicable law or to a written waiver by lender I Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in fu1l. a sum ("Funds") equal 10
<br />one--tweInh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Propeny, if any; (c) yearly hazard insurance premiums; and Cd) yearly
<br />mongage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable <estimates ofruture 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 shaH apply the Funds to pay the cscrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower interest on the 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 interest to be paid, Lender shaH 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 debilS to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrument.
<br />Iftbe amount oftbe Funds held by Lender, together with the future monthly payments of Funds payable prior 10
<br />the due dates of the escrow items, shall exceed the amount required to pay ,he 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 to pay 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 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 sball apply, no later
<br />than immediately 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. AppUeallOD of Payments. Unless applicable low provides otberwise. all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, 10 late charges due under the Note; second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragrapb 2; fourtb. to interest due; and last. to principal due. .
<br />4. C'IIaqeo; U..... Borrower shnll pay all taxes. assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority. over this Security Instrument. and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations 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 shall promptly furnish to Lender ail notices of amounts
<br />to 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 tbis 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 the 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 Propcny; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender 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 identifyins 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 />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erccted on the Property
<br />insured against loss 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 shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably witbbeld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clausc.
<br />Lender sball bave the right to bold tb. policies and renewals. If Lender requires. Borrower shall promptly give to Leoder
<br />alll'cccipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the lnsurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shan be applied to restoration or repair
<br />of the Propeny daJnaaed. if the restoration or repair 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 shall be
<br />applied to the sums secured by this Security Instrument, whether or not 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 />oll'ercd to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then dUe. The 3<ktay 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 tbedue date of the 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 P'llicies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. PresenalloD and Mainl_ of Pro~; Leueboldl. Borrower sholl nol deslroy. damage or substantially
<br />change the Property, aDow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold.
<br />BorrowershaU comply with the provisions of the lease. and if Borrower acquires fcc title to the Propeny, the leasehold and
<br />fee title shall Dot merge unless Lender agrees to the merger in writing.
<br />7. ProtectiDD or laIder'. Rlpb ID the Property; Mortgage Insurance. If Borrower fails to penonn the
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Propeny and Lender's rights
<br />in the Property. Lender's actions may incJude paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in coun, paying reasonable attorneys' fees and entering on the Propeny to make repairs. Although
<br />Lender may take aclion under this paragraph 7, Lender docs not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall became additional debt or Borrower sccured by this
<br />Security Inslrument. Unless Borrower and lender agree to other tenns ofpaymem, these'amounts shall bear interest from
<br />the date of disbun.ement al the Notc ratc and shall be payable. with intercst, upon notice from Lender to Borrower
<br />requesltng payment
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