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<br />UNlt::ORN CoVENANTS. Borrower and Lendereovenant and Bsree as follows: 88_1066 B 1
<br />1, Po,...t n' Prlnclpa' and Inier..t; Prepayment and Lale Chars... Borrow.r sh.1I promptly psy wh.n due
<br />Ih. principal of and inl.rest on thed.btevld.nced by Ih. Not. and any pr.paym.nl and lal. charg.s due und.rth. Not..
<br />.z. Fu.dlforTu.....d IDlUranee. Subjecllo applieabl.law or 10 u wriu.n waiv.r by L.ud.r, Borrow.r shall pay
<br />10 Lender on Ihe day monlbly paym.nt. are due und.r the Not., untillh. Not. is paid In full, a sum ("Fund.") .qual to
<br />one-tw.lfth of: (.) yearly Wes and ......m.nll which may allain priority ov.r thl, Security Instrum.nl; (b) y.arly
<br />lr.ucboJd payments or ground rents on the Property, if anYi (c) yearly hazard insurance premiumsj and (d) yearly
<br />monpp insurance premiums. if any. These items are called "escrow items," Lender may estimate the Funds due on the
<br />basis or current data and reuonablc estimates of fulure escrow ittms.
<br />The Funds ,hall be h.ld in an institution the deposill or accounts of which arc in,ured or guaranleed by a federal or
<br />state asency (including Lender If Lender is ,uch an inslltulion). Lend.r ,hali apply Ih. Fund, 10 pay th. escrow iI.ms.
<br />Lender may not cbarg. for holding and applying Ih. Funds, analyzing th. account or verifying th. escrow ilem., unless
<br />Lender pays Borrower inleresl on the Funds and applicable law permilll Lend.r to make ,uch a charge. IIorrower and
<br />Lender may agree in writing Ibat inleresl ,hall be paid on lb. Funds. Unless an agreement is made or applicabl. Isw
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />sball give to Borrower, without charge, an annWIJ accounting oftbc Funds showing credits and debits to the Funds and the
<br />purpose for which each debilto Ihe Funds was made. The Funds are pledged as additionalsecurily for th. ,umS secured by
<br />this s.curlty Instrument.
<br />If the amounl of Ih. Funds h.ld by Lender, logether with Ihe fUlure monlhly paym.nts of Funds payabl. prior 10
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shan be,
<br />at Borrower', opli9n, either promptly repaid to Borrower Dr crediled to Borrow.r on monthly paym.nts of Funds. If the
<br />a:t1nunl of lb. Funds held by Lender is not sufficient 10 pay Ihe escrow ilems wh.n du., Borrow.r shall pay 10 Lender any
<br />amount nccc:ssary to make up the deficiency in ene or more payments as required by' Lender.
<br />Upon payment in full of all sums secured by thi, Security Instrumenl, Lend.r shall promptly refund to Borrower
<br />any Funds held by Lend.r.lfund.r paragraph 191he property is sold Dr acquired by Lend.r, Lend.r shall apply, no later
<br />than immediately prior 10 the sale of lb. Property Dr ils acquisition by Lend.r, any Funds h.ld by Lender atth.time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Applicatioa of Paymeula. Unless applicable law provides oth.rwise, all paym.nlll received by Lend.r under
<br />paragraphs 1 and 2 shall be applied: fint, 10 late charges due under lb. NOI.; second, 10 pr.payment charges due under th.
<br />Note; third, to amounts payable und.r paragraph 2; fourth, 10 interest due; and last, 10 principal due.
<br />4, CIIargeo; U..... Borrow.r shall pay all taxes. assessments, charges. fines and impositions attnbutable to th.
<br />Property which may attain priority. over Ihis Security Instrument, and leasehold payments Dr ground renlS, if any.
<br />Borrower shall pay Ibese obligations in lb. manner provided in paragraph 2, or if not paid in thaI manner, Borrower shall
<br />pay tbem on lime dim:t1y to th. person owed payment, Borrower shall promptly furnish to Lender all nolices of amounts
<br />10 be paid under this paragraph. If Borrow.r makes these payments directly, Borrow.r shall promptly furnish 10 Lender
<br />receipts evidencing th. payments.
<br />Borrower shall promptly discharge any lien wbich has priority o"er this s.curi'y Instrumenl unless Borrower. (a)
<br />agrees in writing to the payment ofth. obligalioo secured by the1icn in a manner acceptable to Lend.r; (b) contests in good
<br />failb th.1icn by, or defends against enforcement of lb. lien in,legaI pnx:ccdinSS which in Ibe Lender's opinion operate to
<br />prevenlthe cnfon:cment of the lien Dr forfeiture of any part oftbe Property; Dr (c) secures from th. hnlder ofth.lien an
<br />aaroement ..tisfactOJy to Lender subordinating th.lien 10 this Security Instrument, If Lender determines thaI any part of
<br />tbc Property is subject ID a lien which may atlain priorily over this Security Instrum.nt, 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 />ofth. giving ofnolice.
<br />5. Huard IDauruee. Borrower shall keep the improv.ments now existing or hereafler erected on the Property
<br />insured against loss by fire, hazards included wilhin th.lcnn ....tended CDv.rage" and any olb.r hazards fnr 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 subjcct to Lend.r', approval which shall no' be
<br />unreasonably wilbheld.
<br />All insurance policies and renewals shall be acceptabl. to Lender and shall include a standard mnrtgage clause.
<br />Leader shall bave tbc right to hold the policics and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and reuewal notices. In Ibe event oflnss, Borrower shall give prompl nOlice 10 th. insurance
<br />carrier and Lcnder. Leader 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 tbc Property damaged. if the restoration or repair is economically f...ible and Lender's security is nOllcsscned. If the
<br />restoration Dr repair is not economically feasible Dr Leader's ....urily would be Icsscned. Ih. insurance proceeds shall be
<br />applied to the sums ....ured by this Security Instrument, whether nr not Iben due, wilb any excess paid to Borrow.r. If
<br />Borrower abandons the Property, or does not answer within 30 days a nOlice from Lend.r thatlbe insurance carri.r has
<br />oII'c:raIlo settle a claim, then Lender may collect the inluranc:e pnx:ccds. Lender may use Ibe proceeds to repair or reslore
<br />!be Property or to pay sums secured by tbis Security Instrument, whether or nolthen due. The 3D-day period will begin
<br />when tbenotice is given.
<br />Unlcsa Leader and Borrower olberwise agree in writing, any application of proceeds to principal shall not ..tend Dr
<br />postpon. tbc due dale of the moothly payments referred 10 in paragrapbs I and 2 Dr changeth. amounl oflh. payments. If
<br />under paragraph 19 tbc Property is acquired by Lender. Borrower's rip,tto any insurance policies and pnx:ccds resulting
<br />from damage to lb. Property prior to Ibe acquisition shall pass 10 Lender to Ih. ..Ienl of Ih. sum, secured by this Securily
<br />lustrument immediately prior to lb. acquisilion.
<br />6. ~ ud MaIn_ ofl'roperJr; LeaaebnldL Borrower ,hall nol destroy, damage or substantially
<br />change: th. Property. allow lb. Property to detenoral. or commit waste. If this Securily Instrument is on a leasehold,
<br />Borrower shall comply with Ibe provisions oflhel..... and if Borrower acquires f..title to Ihe Property, Iheleasehold and
<br />f..tit1esball not IDCI'JC unless Leader agrees 10 th. mer.... in writing.
<br />7. PrDledlae of Lmder'a ItIPI8 IsI lbo Property; M,,"- IDIurance. If Borrower fails '0 perform Ih.
<br />COYmauts and agreements contained in this Security IMtrument. or there is a legal proceeding that may significantly affect
<br />laMIer.. riJbts in the Property (sucb as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />rqulatiom), then Leader may do and pay for wbatever is necessary to protect th. value ofth. Property and Lend.r's rip,lS
<br />in tbc Property. Lender.s ICtions may includ. paying any sums secured by a Ii.n which has priorilY ov.r Ihis Security
<br />1Dstrumen1, appearing in conn. paying reasonable anomeys' fees and entering on the Propcny to make repairs. Although
<br />1.eudcr may take action under tbis paragraph 7, Lender does not bav.to do so.
<br />Any amounlSdisbu..... by Lender under this paragrapb 7 ,ball become addilional debt ofllorrower secured by thi,
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment. these: amounts shall bear interest from
<br />the date of dU.bunement at the Note rate and shall be payable, with interest, upon notice from Lc:nder to Borrower
<br />requestinJ payment.
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