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<br />. 88- "106330
<br />UNiFORM COVENANTS. Borrower and Lender covenont and agree us follows:
<br />I. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shnll promptly pay when due
<br />Ihe principal of and inlerest on the deht evidenced by the Note and any prepayment and late charges due undcr the Note.
<br />2. Funds for Taxes and [nsuranee. Subject 10 applicable law or to a wrillen waiver by Lender, Borrower shall pay
<br />10 Lender on the day monthly payments are due under Ihe Note, unlillhe Note is paid in full. a sum ("Funds") equal 10
<br />one-twelfth of: (a) yearly taxes and assessmenls which may atlain priority over this Securily Instrument; (b) yearly
<br />leaseho]d payments or ground rents on the Properly, if any; (c) yearly hazard insurance premiums: and (d) yearly
<br />mortgage insurance premiums, if any. These items are caUed "escrow items. n 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 fedeml 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, analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower interesl 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 not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting orthe Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to Ihe Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrument.
<br />If the amount of Ihe Funds held by Lender, together wilh the fulure monthly paymenls of Funds payable prior to
<br />the duc datcs oithe escrow items, shaH exceed the amount required to pay the escrow items when due, the excess shall be,
<br />al Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If Ihe
<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 Ihis Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 Ihe Property is sold or acquired by Lender, Lender shall apply, no ]aler
<br />than immediately prior to the sale of Ihe Property or ils acquisition by Lender, any Funds held by Lender allhe time of
<br />application as a credit against the sums secured h)' this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwi~e, all payments received by Lender under
<br />paragraphs] and 2 shall be applied: first, to late charges due under the Note: second, to prepayment charges due under the
<br />Notej third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charges; Liens. Borrower shalJ 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 shaH
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />10 be paid under this paragraph. If Borrower makes the.", 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 wriling to the payment oflhe obligation secured by Ihe lien in a manner acceplable to Lender: (b) conleslS 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 />preventlhe enforcement of the lien or forfeiture of any part of the Property: or (c) secures from the holder of Ihe lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrumenl. If Lender determines that any part of
<br />'the Property is subjecl to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy Ihe lien or take one or more oflhe actions set fOMh above within ]0 days
<br />of the giving of notice.
<br />S~ Hazard Insurance. Borrower shan keep the improvemenls now existing or hereafter erected on the Property
<br />insured against loss by fire. hazards included within the term "exlended covemge" and any otller 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 withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a 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 a.nd renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof ofloss if not 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 shaH be
<br />applic::d to the sums secured by this Security Instrument, whether or not then due, with any CJtccss 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 seltle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds 10 repair or restore
<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 nol extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change (he amount of . he payments. If
<br />under paragraph] 9 the PropeMy is acquired by Lender. Borrower's right 10 any insuraace policies and proceeds resulting
<br />from damage to Ihe Property prior 10 the acquisition shall pass 10 Lender 10 the extent oflhe sums secured by this Security
<br />Instrument immedialely prior to the acquisition.
<br />6. Presenalion and l\.fainlermnce or Property; Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Propeny, allow the Property to deteriorate or commit wasle. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions orthe lease, and if Borrower acquires fee titJe to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees Co the merger in writing.
<br />7. Protection of Lender's Rights in the Propeny; Mortgage Insurance. Ir Borrower fails to perform the
<br />covenants and agreements contained in this St.-cunty Instrument, or then: is a legal proceeding that may significantly affecl
<br />Lender's rights in the Pro~rty (such as a proceeding in bankruptcy. probale, for condemnation or 10 enforce laws or
<br />regulations), then Lender may do and pay for whate\'cr is necessary to protect the value of the Propeny and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priorit)' o\'er Ihis Security
<br />Instrument, appearing in court, paying rcaMlnable attorneys' fees and entering on 1he Property 10 make repairs. Although
<br />Lender mny take action under this paragraph 7, Lender docs nol have to do so.
<br />An)' amounts disbursed by lender under this paragraph 7 shall become additional dehl llf Borrower !\ecurcd by thiS
<br />Security Inslrument. Unless Borrower end lender agree to other Icrms. of paymenl. Ihl!1oC amnunl" "hall hear inlere"'1 rrorn
<br />the dale of disbunement at thr Note rale and c;hall be payable. wllh mlere!tt. upnn nnllce fmm Lender 10 Bl,rrllw('r
<br />rcquo.ting p3ymenl.
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