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<br />88- 106289
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<br />UNIFORM COVENANTS. Borrowerand Lendereovenanl and agree as follows:
<br />I, Payment of PrIncipal and Interal; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal ofond interest on the debt evidenced by the Note and any prepayment and lale charges due under the Note.
<br />Z. Funds ror Taxes and IllIUrance, Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on Ihe day monlhly payments are due under the Note, unlil Ihe Note is paid in full, a sum ("Funds") equal to
<br />on..twelRh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (h) yearly
<br />leasehold payments or ground rents on the Property, if any: (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage 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 offuture 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 instilUtion). Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, anslyzing the accounl 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 shall nol be required to pay Borrower any interest or earnings .on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounling of the Funds showing credits and debits to Ihe Funds and the
<br />purpose for which each debit 10 the Funds was made. The Funds are pledged as additional security f<:lr the sums secured by
<br />this Securily Inslrument.
<br />If the amount of the Funds held by Lender, togelher with Ihe future monthly payments of Funds payable prior to
<br />the due dales of the escrow items, shall exceed Ihe amounl required to pay the escrow items when due, Ihe exce.. shall be,
<br />at Borrower's option, either promplly repaid 10 Borrower or credited 10 Borrower on monthly payments of Funds. If Ihe
<br />amounl ofthe Funds held by Lender is not sullicientlo pay the escrow ilems 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 Ihis Securily Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />Ihan immediately prior to Ihe sale of the Property or its acquisition by Lender, any Funds held by Lender at the lime of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: fi"t, to late charges due under Ihe Note; second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; founh, 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 />Properly which may altain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragrapq 2, or if not paid in that manner, Borrower shC!ill
<br />pay them on time directly to Ihe person owed payment. Borrnwer shall promptly furnish to Lender all notices of amounls
<br />10 be paid under this paragraph. If Borrower makes these paymenls directly, Borrower shall promptly furnish to 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 />failh Ihe lien by, or defends against enforcemenl of Ihe lien in, legal proceedings which in the Lender's opinion operale to
<br />prevenllhe enforcement of the lien or forfeiture of any part of Ihe Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory 10 Lender subordinating Ihc lien 10 this Security Inslrumenl. If Lender delermines that any pari of
<br />the Property is subject to a lien which may altain priority over Ihis Securily Instrument, Lender may give Borrower a
<br />nOlice idenlifying the lien. Borrower shall satisfy the lien or take one or more of the aClions sel fOrlh above within 10 days
<br />ofthe giving of no lice.
<br />S. Hazard Insurance, Borrower shall keep the improvements now existing or hereafter erected on the Propeny
<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 far the periods that Lender requires. The
<br />insurance carrier providing Ihe insurance shall be chosen by Borrower subjecl 10 Lender's approval which shall nol be
<br />unreasonabl~ wilhheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shalllOclude a standard mortgage clause.
<br />Lender shall have the right 10 hold the policies and renewals. If Lender requires, Borrower shall promptly give 10 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 proofofloss ifnot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repEair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's scG-Ut'-i-ty 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 Sftcurity 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 />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds 10 repair or reslore
<br />the ProperlY or to pay sums secured by Ihis Securily Instrument, whether or not then due. The 30-day period will begin
<br />when Ihe notice is given.
<br />Unless Lender and Borruwer otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone th. due dale of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Propeny is acquired by Len(fer. Borrower's right to any insurance policics and proceeds resulting
<br />from damage 10 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. Preservatinn and Mainlenance of Property; Leaseholds. Borrower shall nnt destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commil waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with Ihe provisions oflhe lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />1. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform Ihe
<br />covenants and agrccments contained in this Security Instrumenl, or there is a legal proceeding thaI may significant I}' affect
<br />Lender.s rights in the Propeny (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 ro protect the value ofrhe Property and Lender's rights
<br />in the I"ropcny. Lender's actions may include 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 Properly to make repairs. Allhough
<br />Lender may takeaclion under rhis paragraph 7. Lender docs nol have to do so.
<br />. Any amounts disbursed by Lender under this paragraph 7 shall become Ilddilional debt of Borrower secured by this
<br />Securit)' tm,lrument. Unless Borrower Bnd Lender agree to other lenns of payment, these amounts shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lcnder to Borrower
<br />r<q\lOli\inl payment.
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