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<br />88- 106042
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<br />UNIFORM COVEfo:ANTS Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />Ihe principal of and intcresl on Ihe debt evidenced by thc Note and any prepayment and late chargcs due under the Note,
<br />2. Funds lor Taxes and Insurance. Subject 10 applicable law or to n written waiver by Lender, Borrower shall pay
<br />10 Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
<br />one.twelnh of: (0) yearly laxes and assessments which may attain priority over Ihis Security Instrumenlj (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insumnce premiums; and (d) ycarly
<br />mortgage insurance premiums, if any. These items arc called "escrow items." Lender may estimate the Funds due on the
<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 />slate 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 account or verifying lhc escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permils Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shaH 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 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 Ihc Funds was madc. The Funds are pledged as additional security for the sums secured by
<br />lhis Security Instrument.
<br />If the amount of Ihc Funds held by Lender, togclher with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount 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 of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shaH 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 an sums secured by this Security Instrument. Lender shan promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shan 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. Application or Payments. Unless applicable law provides 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 prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2j fourth, to interest due; and last. to principal due.
<br />4. Charges; Liens. Borrower shall 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 shan pay these obligations in the manner provided in paragraph 2, or if not paid in Ihat manner, Borrower shall
<br />pay them on lime directly to Ihc person owed payment. Borrower shall promplly furnish to Lender all noticcs of amounts
<br />to be paid under this paragraph, If Borrower makes these payments directly, Borrower shall promptly furnish 10 Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this 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 oflhe lien in, legal proceedings which in the Lender's opinion operate to
<br />prevenlthc enforcement Oflhc 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. 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 identifying the lien. Borrower shall satisfy the lien or take Dnc or more of the actions sel forth above within 10 days
<br />of the giving of notice,
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />iosured against loss by fire, hazards included within the term "extended coverage" and any mher 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 shull 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 a standard mortgage clause.
<br />Lender shall have the righllO 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 10 the insurance
<br />carrier and Lender. Lender may make proof orloss ifnol 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 />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 Instrumcnl, 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 />offered 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 30-day period wilJ 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 dateoflhe monlhly payments referred 10 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 policil..'S and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass 10 Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance or ProperJiJi Leaseholds. Borrower shall not dest roy, damage or substantially
<br />change the Property, anow the Property to deteriorate or commit waste. If Ihis Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee tille to Ihe Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection or Lender's Rights in the Property; Mortgage Insurance. If Borrower fails 10 perform 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 Ihe Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Propert}. to make repllirs. Although
<br />Lender may take action under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by lhis
<br />Security Instrumenl. Unless Borrower and lender agree to other terms orpaymcnt. these amounts shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable, with inrcrest, upon notice from Lender 10 Borrower
<br />requesting payment.
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