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<br />88- 106253
<br />UNIfORM COVENANTS, Borrower and Lender'covenanland agree as follows:
<br />I. Po)'lllOllt of PrIncipii IIId loteral; Prepa)'llleot ud LIte CIwan. Borrower shall promptly pay when due
<br />the principal of and interesl on Ihe debl evidenced by Ihe Note and any prcpsymenl and laic charges due under the NOle,
<br />2. Fundi for Tael ud lIIIuraoee. Subject 10 applicable law or 10 a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monlhly paymenls are due under Ihe NOle. untillhe Note is paid in full, a sum ("Funds") equal 10
<br />onc-twelflh of: (a) yearly taxes and assessments which may altain priorilY over Ihis Security Inslrumenl; (b) yearly
<br />lcueltold payments or ground rents on the Property, il any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mDft8l8e insurance premiums, if any. These ilems arc called ..escrow items." Lenaer may estimale Ihe Funds due on Ihe
<br />basis 01 current data and reasonable estimates ollulure escrow ilems.
<br />The Funds shall be held in an institulion Ihe deposits or accounts 01 which arc insured or guaranlccd by a lederal or
<br />state agency (including Lender if Lender is such an instilution), Lender shall apply lhe Funds to pay Ihe escrow items.
<br />Lender may nol charge ror holding and applying Ihe Funds, analyzing the account or verifying the escrow items, unless
<br />Lender.pays Borrower interest on the Funds and applicable law pennits Lender 10 make such a.charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds, Unless an agrcemenl is made or applicable law
<br />requires interesl to be paid, Lender shall nOI be required to pay Borrower any interest or earnings on the Funds. Lender
<br />ahat1 give to Borrower, witboul charge, an annualaccounling oflbe Funds showing credils and debils 10 Ibe Funds and the
<br />purpose lor which each debit to the Funds was made. The Funds are pledged as additional security lor the sums secured by
<br />this Security Instrument- .
<br />If the amount 01 the Funds beld by Lender, togetber wilb Ihe lUlure monlbly paymenls 01 Funds payable prior to
<br />the due dates 01 Ihe escrow items, shall exceed the amount required 10 pay the escrow items when due, the e,cess shall be,
<br />al Borrower's option, cilber promptly repaid to Borrower or crediled to Borrower on monthly paymenls 01 Funds. II the
<br />amount oftbe Funds held by Lender is nOI sullicientto pay the escrow items wben due. Borrower shall pay to Lender any
<br />amounl necessary to make up Ihe deficiency in one or more payments as required by Lender.
<br />Upon payment in lull 01 all sums secured by this Security Inslrumenl, Lender shall promptly relund to Borrower
<br />any Funds held by Lender. If under paragrapb 191he Property is sold or acquired by Lender, Lender shall apply. no later
<br />Ihan immedialely prior 10 the sale or the Property or its acquisition by Lc:ndor, any Funds held by Lender allhe time 01
<br />application as a credil againstlhe sums secured by this Securily Inslrument.
<br />3. AppUcatioa or Po)'lllcnta. Unless applicable law provides olherwisc, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: fir.;I, 10 late charges due under Ihe NOle; second, to prepaymenl charges due under Ihe
<br />Note; third, 10 amounts payable under paragraph 2; four1h, 10 interest due; and lasl, 10 principal due.
<br />4, Cwaet; lJens. Borrower shall pay alll8XeS, assessments, cbarges. fines and impositions attribulable to Ihe
<br />Property which may altain priorilY, over Ihis Security Inslrument, and leasehold payments or ground rents, il any.
<br />Borrower shall pay Ihese obligations in Ibe manner provided in paragraph 2, or il nOI paid in thai manner. Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly lurnish 10 Lender all nOlices 01 amounts
<br />10 be paid under this paragrapb. If Borrower makes these payments directly, Borrower shall promptly lurnisb 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 Ihe paymenl oflhe obligation secured by lhelien in a manner acceptable 10 Lender; (b) contesls in good
<br />raith the lien by, or defends against enlorcemenl 01 the lien in. legal proceedings which in tbe Lender's opinion opcr8te to
<br />prevent the enrorcement 01 Ibe lien or rorfcilure or any pari of the Property; or (c) secures Irom the bolder of the lien an
<br />qrcemcnt satisfactory 10 Lender subordinating Ihe Iicn to Ihis SecurilY Inslrument. If Lender delennines thai any pari of
<br />the Property is subjccl to a licn which may altain priorilY over this Security Inslrumenl, Lender may give Borrower a
<br />notice identirying the Iicn. Borrower shallsatisry Ibelien or take one or more olthe actions sel forth above wilhin 10 days
<br />oltbe giving olnoticc.
<br />5. Haud 1Iwtruu:e, Borrower shall keep the improvements now existing or herealler erected on tbe Propcny
<br />insured against loss by fire, hazards included wilhin the tenn "exlended coverage" and any other hazards lor which Lender
<br />requires insurance. This insurance shall be mainlained in Ihe amounts and lor Ihe periods Ihat Lender requires. The
<br />insurance carrier providing the insurance sball be chosen by Borrower subjecllo Lender's approval which shall nol be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortll88e clause.
<br />Lender ahat1 have the righlto hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipll orpaid premiuma and renewal notices. In the event 01 loss, .Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof orloss il not made promplly by Borrower. .
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to resloration or repair
<br />or the Propcny damaged. ir Ihe rcs10ra1ion or repair is economically leasible and Lender's securilY is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's llCCUri!y would be lessened, Ihe insurance proceeds shall be
<br />applied 10 1he sums secured by Ihis Security Inslrument, whe1her or not then due. wilh any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer wilhin 30 days a notice Irom Lender Ihallhe insurance carrier has
<br />oft'ercd 10 settle a claim, Ihen Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by Ibis Security Inslrument. whether or not Ihen due. The 3lJ.day period will begin
<br />when the notice is given.
<br />Unless Lender and BomIwer olherwise agree in writing. any application 01 proceeds to principal shall note,tend or
<br />postpone the due date oftbe monthly paymenls referred to in paragraphs I and 2 or cbange the amount oflhe payments. II
<br />under paragnpb 19 the Property is acquired by Lender. Borrower's righllo any insurance policies and proceeds resulting
<br />rrom damage to lhe Property prior 10 the acquisition shall pass 10 Lender 10 the extent oflhe sums secured by this Security
<br />Instrument immediately prior to tbe acquisilion.
<br />6. Preaenatlon "'"' MaIntenance orPropcrfW; Lcuebolda. Borrower shall not destroy. damage or subslantially
<br />change the Property, allow Ibe Property to deteriorate or commit waste. II this Security Instrument is on a leasehold,
<br />Borrowcrahat1 comply with the provilions ofthelease, and ilBorrower acquires lee title to Ihe Property. the leasehold and
<br />rcetitle ahat1 not merge unless Lender agrees to the morller in wriling.
<br />7. ProIectloa or Leader'a R1Pta In the Property; Mot1p&e Insunnce. If Borrower lails to perfonn the
<br />covenants and agreements contained in Ihls SecurilY Inslrument. or tbere is a legal proceeding that may significantly alfect
<br />Lender's rights in lite Propcny (such u . proceeding in hankruptcy, probale, lor condemnation or 10 enrorce laws or
<br />repJations).tbcn Lender may do and pay lor whalcver i. necessary to prolectlhe value oflhe Property and Lender's rights
<br />m the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />IDlllUmenl. appcari... in court, payin. reasonable allomeys' lees and entering on the Property 10 make repair.;, Although
<br />Lender may Jake action under this pa....raph 7, Lender does not have to do so.
<br />Any amounls disbuncd by Lender under this paragraph 7 shall become additional debt olBorrower secured by this
<br />Security llII1rument. Unless Borrower and Lender agree to OIher tenns 01 payment, these amounts shall bear inlerest Irom
<br />tbe date of disbursement 8t Ih. Note rate and .hall be payable. with interest, upon notice Irpm Lender to Borrower
<br />teq1ICIlina payment. ., j
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