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<br />88-10652-1.
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<br />UNIFORM COVENANTS Borrower and Lender covenant and agree us follows:
<br />1. Payment of Principal and Interest; Prepayment and Lale Charges. Borrower sholl promptly pay when due
<br />the principal of and interest on the d.ebt evidenced by the NOlc and any prepayment and laic charges due under the Note:.
<br />2. Funds for Tnes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shaH pay
<br />to Le:Jdcr on Ihe day monthly payments ure due under the Note. unlil the: Note: is paid in full. it sum ("Funds") equal to
<br />one-twelfth of: (0) yearly taxes and assessments which may altain priority oYer this Security Instrument: (b) yearly
<br />leasehold payments or ground rents on the Property, if any; {el yenrly 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 Ihe
<br />basis of current tIata 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 institution). Lender shalJ apply the Funds to pay the escrow ilems.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Bmrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreemenl is made or applicable law
<br />requires interest tC'l be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. lender
<br />shall give to Borro.....er. without charge. an annual accounting of the Funds showing credits and debils to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrument.
<br />If the pmount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dat~ .Jf the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />al BOl;QWer > option, either promptly repaid to B.orrower or crediled to Borrower on monthly payments of Funds. If the
<br />amoun1 of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay 10 Lender any
<br />amount n~sary to make up the deficiency in one or more payments as required by Lender.
<br />Upon payment in full of aU sums secured by this Security 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 />than immediately prior to the sale of the Property or its acquisi1ion by Lender, any Funds held by Lendcr at the time of
<br />application as n 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: first, to late charges due under the ~ote: second, to prepayment charges due under the
<br />Note; third, 10 amoun1s payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charges; Liens. Borrower shall pay an taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority. over this Security Instrument, and leasehold payments or ground TenlS, if any.
<br />Borrower shall pay these obJigations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shalf promptly furnish to l.ender 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 evidencing the paymems.
<br />Borrower shall promptly discharge any Hen 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 accep1able to Lender; (b) con(ests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate (0
<br />prevent the enforcement of the lien or forfeiture of any pan of the Property; or (c) secures from the holder of the lien an
<br />I1grec:menl satisfactory to Lender subordinating the lien to this Security Instrument. If Lender delennines thai an)' pan of
<br />Ihe Propeny is subject to a lien which may attain priority over this. Security Instrument, Lender may gJ\:e Borrower a
<br />nolice identifying the lien. Borrower shaH satisfy the lien or take one or more of the actions set forth above within 10 da~..s
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now exisling or hereafter erected on the Propeny
<br />insured against loss by fire. hazards included within the tenn "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be: mainlained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subJecl lO Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceplable 10 Lende!" and shall include a slandard mongage clause.
<br />Lender shall have the righl to hold the policies and renewals. If Lender requires, Borrower shaH promptJy give 10 Lender
<br />all receipts of paid premiums and renewal notices. In Ihe event of loss, Borrower shall give prompt notice 10 Ihe insurance
<br />carrier and Lender. Lender may make proof ofless ifnOl made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in wriling, Insurance proceeds shall be applied to restoration or repair
<br />of the Propeny 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 secunty would be lessened, tbe Insurance proceeds shall be
<br />applied to the sums secured by this Securi1y Instrument, \\'helher or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer y..;thin 30 dnys II notke from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may coHeet the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Propeny or to pay sums secured by this Security Instrument, whether or nOl Ihen due. The 30-day period will begin
<br />when Ihe notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not exlend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change Ihe amount of the paymen1s. If
<br />under paragraph 19 the Propeny is acquired by Lender, Borrower's righl to any insurance policies and proceeds resultmg
<br />from damage to the Propeny prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior 10 the acquisition.
<br />6. Presenation and Maintenance of ProperJiYi Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow 1he Properly to deteriorotc or commil waste. If this Security Instrument i~ on a len5Chold,
<br />Borrower shall comply with the provisions of the lens.e, and if Borrower acquires fee title to the Propeny, ltoe leasehold and
<br />fee title shall not merge unJess Lender agrees to the merger in wntmg.
<br />7. Protection of Lender'l Rlghtl in the Property; Mortgage Insurance. If Borrower fnils to perform the
<br />COVenants and agreements contained in thiS Sc:curily Instrument, or there tS a legal proceeding that may sigm6canlly affect
<br />Lender's rights in the Propeny (such as a proceeding in bankruptc)', probate, for condemnatlun or to enforce laws or
<br />regulations). then Lender may do and pay for whatever is necessnryto protect the vaJue of the I)roperly and Lender\, nghts
<br />in the Property. Lender's actions may include paying any sums liccured by a lien which has pnoril}' over this. Securil)'
<br />Inslrument, appearing in coun, paying reasonable attorneys' feo and entering on the Propert)' 10 mn~e repll1rs. Although
<br />Lender may lake action under this paragraph 7, Lender does not have 10 do so.
<br />Any ornounlS disbursed by Lender under this paragraph 7 shall become additional debt of Borrower !tl:curcd b)l lhl!'>
<br />Security Instrument. Unless Borrower Bnd Lender agree to other terms of payment, Ih~e amt1unl!'> !'ohall hear mlen:st from
<br />the dale of disbursement at the NOlC rate Ilnd !iihall he pa)lDble, with 1DIerc..t. upon nllt!cr frnm Lender III Bnrmwc-r
<br />requcsling payment
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