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<br />88- 106353
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<br />UNIFORM COVENANTS. Borrow.r and Lend.r .ovenonl ond ogr.., as follows:
<br />I. Paymenl 01 Prlaclpaland lalerest; Prepaymenl and Lole Charges. Borrower sholl promplly poy when due
<br />Ihe principal of and interesl on Ihe deblevidenced by the NOle and any prepaymenl and laIc charges due under Ihe NOle.
<br />2. Fandlfor Tans and Insuranee. Subject 10 applicable law orlo a wrillen waiv.r hy lender, Borrower~hall pay
<br />10 Lender on Ihe day monlhly paymenls are due under the NOle, unlillhe NOle is paid in full, a sum ("Funds") equal to
<br />one-Iwelfth of: (a) yearly I.... ond assessm.nts which moy ouoin priorily over this SecurilY Inslrument; (b) yearly
<br />leasehold payments or ground renls on the Property, if any: (c) yearly hozard insuronce premiums; and (d) yearly
<br />mongage insurance premiums. if any. These items are called "escrow Items." Lender may estimate the Funds due on the
<br />basis of curren I dala ond reasonoble ..timates offulure escrow ilems.
<br />The Funds shall be held in an instilulion Ihe deposits or accounls of which are insured or guaranleed by a federal or
<br />state agency (including Lender if Lender is such an instilulion). Lender shall apply the Funds to pay the escrow ilems.
<br />Lender may not charge for holding and applying the Funds, analyzing Ihe aeeounl or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law penoits Lender to make such a charge. Borrower and
<br />Lender may agree in writing Ihal interest shall be paid on the Funds. Unless an agreemenl is made or oppIieable 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 crlhe Funds showing credits and debits to the Funds and the
<br />purpose for which each debillo the Funds was made. The Funds are pledged a~ additional security for Ihe sums secured by
<br />this Security Instrumenl.
<br />Ifth. amount oflh. Funds h.ld by Lender, logether with the future monthly payments of Funds payable prior 10
<br />th. due dales of the escrow items, shalle.ceed Ihe amount required to pay the escrow items when due, the e.cess shall be,
<br />01 Borrower's oplion, eilher promptly repaid to Borrower Dr credited 10 Borrower on monlhly payments of Funds. If Ihe
<br />amount ofth. Funds held by Lender is nol sufficient 10 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 this SecurilY Instrument. lender shall promptly refund 10 Borrower
<br />any Funds held by Lend.r. If under paragraph 19 the Property is sold or acquired by lender, Lender shall apply, no laler
<br />than immedialely prior to Ihe sale of the Property or its acquisition by l.nd.r, any Funds held by lender allh.tim. of
<br />application asa credit against the sums secured by this Security Instrument.
<br />3, Application of Pa)'lJlents. Unless applicabl. law provid.. oth.rwise, all paym.nts received by Lender under
<br />paragraphs I and 2 shall be applied: firsl, 10 lat. charges due under the Note; second, to prepayment charges due under the
<br />Note; third, to amounts payabl. under paragraph 2: fourth,to interest due; and last, to principal due,
<br />4. Cbarges; Li..... Borrow.r shall pay all ta.es, ass..sments, charges, fines and impositions attributable to th.
<br />Propeny which may attain priority. over this S~urity Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligalions in the manner provided in paragraph 2, or if nol paid in that mann.r, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts .videncing th. 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 th.li.n by. or d.fends against.nforcemenl of the lien in.l.gal proceedings which in Ih. L.nd.r's opinion operate 10
<br />preventlhe enforc.m.nt of the Ii.n or forf.ilure of any part of Ih. Propeny; or (c) secur.. from the holder of the lien an
<br />agreemenl satisfactory to Lender subordinating th.lien to Ihi~ Security Instrumenl. If lender d.t.noin.. that any part of
<br />the Property is subjecl to a Ii.n 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 one or more of the actions set forth above within 10 days
<br />oflh. giving of nolice.
<br />S. Huard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured againslloss by fire, hazards included within th.lenn ....I.nded cov.rage" and any olh.r hazards for which Lend.r
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carri.r providing the insurance shall be chosen by Borrower subject 10 Lender's approval which shall not be
<br />unreasonably withh.ld.
<br />All insurance policies and r.n.wals shall be acceprable to Lend.r and shall includ. a standard mortgage clause.
<br />Lender shall hav.lh. right 10 hold the policies and renewals. If Lend.r requires. Borrower shall promptly give 10 Lend.r
<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. Lend.r may mal<~ proof ofloss ifnot mad. promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />ofth. Property damaged. if the restoration Dr repair is economically feasibl. and Lender's security is nOllessened. Ifth.
<br />restoration or repair is not economically feasible or Lender's Sl:Curity would be lessened. the insurance proceeds shaH 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 Properly. 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 Propeny or 10 pay sums secured by this Securily Instrumenl. wh.ther or nol then due. Th. 30-<1ay 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 />pDSlpon.lh. due date ofth. monthly payments referred to in paragraphs I and 2 or chang.th. amounl oflh. paym.nts. If
<br />under paragrapb 19 the Properll' is acquired by Lender. Borrow.r's right to any insurance policies aqd proceeds r..ulting
<br />from damag.to the Property prior to the acquisition shall pass to Lend.r to the extent ofthe sums secured by this S.curity
<br />Instrument immediately prior to the acquisition.
<br />6. Presenatioa aad Mainleaatll:e 01 ProJlel1&'; Leaseholds. Borrow.r shall not destroy, damage or substanlially
<br />chang. the Property, allow the Property to deteriorate or commit waste. If Ihis Security Inslrument is on a I....hold.
<br />Borrower shall comply with Ihe provisions ofth.l..... and if Borrower acquir.. fcetitl.to the Property, the leasehold and
<br />fce titleshaIl not merge unless Lender agrees to the merger in writing.
<br />7. Proteetioa of Lender'. Rights in the Property; Mortgage Insurance. If Borrow.r fails to perfonn tho
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may significanlly affect
<br />Lcndu.s rigbts in the Properly (such as a proceeding in bankruptcy, probate. for condemnation or to enforce laws or
<br />rqulations), then Lender may do and pay for what.v.r is necessary 10 prolect tb. valu. 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 priority over this SecurilY
<br />Inslrumenl, appearing in court, paying reasonabl. attorneys' fees and entering on the Propeny to make repairs. Although
<br />Lender may take action under this paragraph 7, Lender docs not have to do so.
<br />Any amounls disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other tenns of payment, these amounts shall bear interest from
<br />lbe dale of disbursement at the Nole rale and shall be pa~..able. wilh interest, upon nouce from Lender 10 Borrower
<br />requesting payment.
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