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<br />UNIH)ItM COVENANTS. Borrower and Lender covenant and IIgree os roll ow,.:
<br />I. Payment nr Principal Ind Inleresll Preplymenl and 1.01e CharKes, Dorrnwer ,Imll prnmplly PllY when due
<br />the principal of and interest on Ihedehl evidenced by the Note and any prcpllymclIf IInd laic chnrge!t due under I he Nole.
<br />2. "unds rarT.xeJ and Inluranr.c, Subject to applicable Inw or 10 n wrlllclI waiver by lender, Borrower shull PRY
<br />10 Lender on tin: doy monthly paymenls are due ander rhe NOle, until the Nole is paid ill rull, II sum ("Funds") equllllo
<br />onc.tweInh of: (0) yearly laxes nnd nssessmenU which Olny DUuin priorilY over 1his Security Instrumenl: (b) yearly
<br />leasehold payments or ground rents on the Property, if unYi (e) yenrl)' hnlnrd insuruncc premiums; Dlld (d) ~'enrly
<br />mortgage insunmce premiums, if uny. These items urc called "cscrow items." lender may estimalc the Funds due on the
<br />basis ofcurrcnt datu and reasonable estimote!. Clffullfre escrow !rems.
<br />The Funds shall be held in an institution Ihe deposits or accounts (If which are insured or gunrnnlecd by a federal or
<br />slale agency (including Lender if Lender is such an institutlun). Lendcr ,hall apply Ihe Fund, to pay Ih. escrow items.
<br />Lender may nur charge for holding and applying rhe Funds, analyzing the accounl or verifying the escrow hems, unless
<br />Lender pays Borrower interest on Ihe Funds and applicable law permits Lender 10 make such a charge. Borrower and
<br />Lcnder may ugree in wriling Ihat 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 10 pay Borrower any interest or comings on the Funds. Lender
<br />shall gi\'c to Borrower, withoul chnrge, an annual nccouniing of the Funds showing credilo;; nnd debits 10 the Funds and the
<br />purpose for which each debit to Ihe Fund!i Wn!i made. The Funds are pledged us additional !\ccurity for Ihe sums ~ccurcd by
<br />this Security Instrument
<br />If the amounl of the Funds held by Lender, together with the future monthly paymenls of Funds payable prior to
<br />the due dates of the escrow ilems. shall exceed the amount required to pay ~he escrow items when due. the excess shall be,
<br />at Borrower's option, either prornplly repaid to Borrower or credited to Borrower all monthly payments of Funds. If the
<br />amount of the Funds held by Lender is nol sufficient 10 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 this Security Instrumenl, 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 acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against Ihe sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />parngraphs I and 2 shall be.applied: first, to late charges due under the NOle; second, to prepayment charges due under the
<br />Note: third, 10 amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charges; Uens. Borrower shall pay all taxes, assessments. charges, finl."5 and impositions anributable 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 thai manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall pro.mptJy furnish to Lender 011 notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />rccciptscvidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Securily 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 the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinaling the lien to this Security Inslrument. If Lender determines that any pari of
<br />Ihe Propeny is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />no lice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set fOI1h above within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured againslloss by fire. hazards included within the leon "extended coverage" and any other hazards for which lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods Ihat Lender requires. The
<br />insurance carrier providing the insurance shaH be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />AU insurance policies and renewals shall he acceptable to Lender and shaH 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 and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />c;lrrier and Lender. lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shaJl 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 securily would be lessened, the insurance proceeds shall be
<br />applied to lhe sums secured by this Security Instrument, whether or not then due, with any excess paid 10 Borrower. If
<br />Borrower abandons the Property. or does not answer within 30 days a notice from Lender Ihatthe insurance carrier has
<br />olfered to settle a claim, then Lender may collectlhe insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrumenl, whether or nol then due. The 3D-day period will begin
<br />when Ihe notice is given.
<br />Unless Lender and Borrower olherwise agree in writing, any applicalion of proceeds 10 principaJ shall not ex lend or
<br />postpone Ihe due dale of the monthly paymenls referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior 10 Ihe acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrumenl immediately prior to the acquisilion.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not deslroy. damage or subslanlially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrumenl is on a leasehold.
<br />Borrower shall comply wilh the provisions ofthe lease. and if Borrower acquires fee title to the Property. the leasehold and
<br />fa: tiUe sholl not merge unless Lender agrees to the merger in writing.
<br />7. ProlectlOD of Lender'. RIghts in tbe Property; Mortgage Insurance. If Borrower fails 10 perform the'
<br />covenants and agreements contained in this Security Instrumenl, or there is a legal proceeding that may significantly affect
<br />Lender's righls in tbe Property (such as a proceeding in bankruptcy, probate, for condemmUion or to enforce laws or
<br />rcgulatioru), then Lender may do and pay for whatever is necessary to proleel the value of the Property 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 Security
<br />Inslrumenl, Ippearing in eourt, paying reasonable altomcys' f~ and entering on the Property 10 make repairs. Although
<br />Lender may llIkc: BClion underthis paragraph 7. Lender does not have 10 do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debl of Borrower secured by this
<br />Security Inslrument. Unless Borrower and Lender agree to other terms ofpaymenl. these amounls shall bear interest from
<br />the dale of disbul'5Cment at the NOle rale and shall be payable, with inlerest, upon notice from lender 10 Borrower
<br />requesting payment.
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<br />88- 106615
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