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<br />88- 106717
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<br />UNIFORM COVENANTS Borrower and Lender covenant Ind sgree as follows:
<br />I. Paymnl or PrIlldpal aad late....ll Prepay..enl and Lale Cb&rllll, Borrower .hsll promplly psy when due
<br />the principal orand interest on the debt evidenced by the Note and any prepayment and latc chargt$ due under the Note,
<br />Z. Faado rar Tax.. ud I........... Subject 10 applicablelsw or to a written weiver by Lender, Borrower .hell pay
<br />10 Lender on the day monthly payments are due under the Nole, unlil the NOle i. paid in full, s .um ("Fund.") equslto
<br />one-twelfth of: (a) yearly taxes and .......ments which mlY attain priority over this Security Instrument: (b) yearly
<br />lcuchold payments or ground rents on Ihe Property, if any: (c) yearly hazard insurance premiums; snd (d) yearly
<br />mortpae insurance premiums, if any. These iIL'f11S are called "escrow hems," Lender may estimate the Funda due on the
<br />basis of current data and reasonable estimates offuture escrow items.
<br />The Funds shall be held in an !nstitution the deposits or accounts ufwhich are insured or guaranteed by a federal or
<br />stale qcncy (including Lender If Lender is ouch an institulion). Lender shall apply Ihe Funds to pay the escrow items.
<br />Lender may not charge for holding and Ipplyin~ the Funds, analyzing lhc account or verifying the escrow items, unless
<br />Lender pays Borrower inl....t on the Funds and applicable law permits Lender 10 mike .uch a charge. Borrower end
<br />Lender may agree In writing that int....t sball be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to be ~d, 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 debit; to the Funds and the
<br />purpose for which each debit to lbe Funds wss made. The Funds are pledged as additional security for Ihe sums secured by
<br />this Security Instrument,
<br />If the amount of1l1e Funds held by Lender, together with the future monthly payments of Funds peyable prior 10
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the elcess shall be.
<br />at 8orJ\1wer's option, either promptly repaid to Borrower or credited to Borrower on monthly payments or FUl1ds. If the
<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 fuU of all sums secured hy lhis Security Inslrument, Lender shall promptly refund 10 Borrower
<br />any Funds held by Lender. Ifunder paragraph 191he Property is sold or acquired by Lender, Lender shaUapply, no Ialer
<br />than immediately prior to the sale of the Propert)' or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, aU psyments received by Lender under
<br />paragraphs I and 2 sball be applied: firs1, to late charges due under Ihe NOle; second, to prepaymenl charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth. to interest due; and last, to principal due.
<br />4. CIarpI; lieu.. Borrower shall pay aD taxes, assessments, charges. fines and impositions attributable to the
<br />Property which may .ttaln priority. over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay lbese obligations in the manner provided in paragraph 2, Dr if not paid in that manner. Borrower shall
<br />pay them on time directly to Ihe person owed payment, Borrower sball promptly furnish to Lender all notices nf amounts
<br />to be paid under lhis paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing lbe payments.
<br />Borrower shall promptly discharge any lien which bas priority over this Security Instrumenl unless Borrower. Ca)
<br />agrees in writing to the payment of the obligation secured by Ihellen in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by. or defends against enforcement oflbellen in, legal proceedings which in Ihe Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Propeny; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines thaI any part of
<br />the Property is subject to 8 lien 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 />ofthc: giving of notice..
<br />5a Hazanl1DnraDce. Borrower shaD keep the improvements now existing or hereafter erected on the Property
<br />insured againslloss by fire, hazards included wilbin Ihe tenn "exlended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shaD be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insulllnce shall be chosen by Borrower suhject to Lender's approval which shall nol be
<br />unreosonably withheld.
<br />All insurance policies and renewals shall be acceptable 10 Lender and sball include a standard mortgage clause.
<br />Lender sbaII have the right to hold !be policies and renewals. If Lender requires, Borrower shall promptly give 10 Lender
<br />all rc:ccipti or paid premiums and rc:Dcwal notices. In tbe event of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender, Lender may make proof ofloss if nOI made promptly by Borrower.
<br />Unless Lender and Borrower otberwise agree in writing. insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if lbe restoration Dr repair is economicaUy feasible and Lender's securily is not lessened. If lbe
<br />restoration or repair is not economicaUy feasible or Lender's security would be lessened. the insurance proceeds shall 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 abandOn! the Property. or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />olFcmI to settle a claim, then Lender may collect the insurance proceeds. Lender may uselhe proceeds 10 repair or restore
<br />the Property or to pay sum. secured by this Security Instrument. whether or nOI then due. The 3O-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any applicalion of proceeds to principal sball not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under pangraph 19 the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to lbe Property prior to the acquisition sball pass 10 Lender 10 the extent of the sums secured by lhis SecurilY
<br />Instrument immediately prior to the acquisition.
<br />6. Praenatloa aad MaIntenance of ProJlCllr. Leueldda. Borrower shall not destroy. damage Dr suhstantially
<br />cbanse the Property, allow the Property to deteriorate Dr commit wsste. If Ihis SecurilY Instrument is on a leasehold,
<br />Bnrrowershall comply wilb lbe provisions oflhe 1..... and if Borrower acquires fee title 10 the Property. the leasehold and
<br />fee title sbaII not merge unJcso Lender agrees 10 the merger in writing.
<br />7. ProlecIion of Leader'I RiPts iD the Property; Mortpge lnaurance. If Borrower fails 10 perform lhe
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly affect
<br />I.mder', risbts in the Property (such as a proceeding in bankruptcy. probate. for condemnation or to enforce laws or
<br />regu1ations), then Lender may do and pay for whatever is n......ry to protect the value of the Propcny and Lender's rights
<br />in the Prope:ny4 l.a1der', actions may include payina: any sums secured by 8 lien which has priority onr this Security
<br />II11tru.mcnt.. appearing in court. payina: reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under lbis paragraph 7. Lender does nol have 10 do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. Uroess Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
<br />the date of disbunement at the Nole rale and shall be payable. wilh interest, upon nOlice from Lender 10 Borrower
<br />requestin& payment.
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