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<br />UNIFORM COVI:N^NTS Borrower nnd Lender covcnnnlDlld lIBree 1I~ rull(lw~.
<br />1. Plyment or 11rlnclpul and Intcrcstj Prcpnymcnt Dnd Late CllllrRcs. norrnwcr shull prom(llly (lilY when due
<br />Ihe principal orund inlerest on Ihedebl evidenced by Ihe Notc nod nny prepaymellt lIud IlIte chnrse~ due under Ihe NOle.
<br />2, Funds for Taxcs and Insurance. Subjecllo nppllcnblc law or 10 a wrillen wuiver by Lender, Borrower shull pay
<br />to Lender on the du)' monthly paymenls are due under the Note, unlillhe Note is pllid in full, n sum ("Funds") equal 10
<br />one-twelfth of: (a) yearly taxes and assessments which may attoln priority mcr this Securily Instrument; (b) yeurly
<br />leasehold paymenls or ground renls on the Property, if anYi (e) yearly hnzard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items arc called "cscrow items." Lender may estimate the Funds due on the
<br />basis orcurrcnl dala aud reusonable estimates of future escrow items.
<br />The Funds shull be held in an inslitulion the deposits or accounts of which Dre insured or guamnteed by u federal or
<br />slate agency (including Lender if Lender is such an institution). Lender shall apply the Funds 10 pay the escrow Items,
<br />Lender may not charge for holding and applying the Funds, anal}'zing the accounl or verifying the escrow items, unless
<br />lender pays Borrowel interest on the Funds and applicable luw permits Lender 10 mllke such a charge. Borrower nnd
<br />Lender may agree in writing that interest shull be paid on the Funds. Unless an ugreement is made or applicable law
<br />requires inlercstto be paid, Lender shall not be required to pay Borrower any interest or earnings on the Fuads. Lender
<br />shan give to Borrower, without charge. nn annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pl..~dged us additional securily for the sums secured by
<br />this Security Instrument
<br />If the amount of the Funds held by Lender. together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shoJI be,
<br />at Borrower's option, either promp1Jy repaid to Borrower or credited to Borrower on monthly payments of Funds. [f Ihe
<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 full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. )funder 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 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 Note: second, to prepayment charges due under the
<br />Note; third. to amounts payable under paragraph 2: fourth, to interest due; and last, to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority. over this Security Inslrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if nol paid in that manner, Borrower shall
<br />pay Ihem on time directly to the person owed payment. Borrower shall promplly 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 evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the paymenl of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />fDith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevenl 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 subordinating the lien to this Securily Instrument. [f Lender determines lhat any pari of
<br />the Property is subject to a 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 />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 Ihe teon "extended coverage" nnd any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounls and for the periods thaI Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower !.ubJt:'cl In Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give 10 Lender
<br />all receipts Df paid premiums and renewal notices. In the event of Ims, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss ifool mude prompt I)' hy Borrower.
<br />Unless Lender and Borrower otherwise agree in writing. in!.urunce proceeds shall be applied to restoration or repair
<br />of the Propeny damaged, if the restoralion or repair is economically feasihle IInd Lender's security is not lessened. If the
<br />restoration or repair is not economicaJly feasible or Lender's SCI:Url1)' would hc lessened, the insurance proceeds shan be
<br />applied 10 the sums secured by this Security Instrument, whether or nol Ihen due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer withlll 3D do)'!. [J notice from Lender that the insurance carrier has
<br />offered to seule a claim, then Lender may collecl the insurance proceed~. Lender may use the proceeds to repair or restore
<br />the Property or 10 pay sums secured by this Security Instrument, whelher or not then due. The 3D-day period will begin
<br />when the notice is given.
<br />Unles!' Lender and Borrower otherwise agree in writing, an)' IIppljcation of proceeds to principal shall 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 paragraph 19 the Property is acquired by Lender, Borrower's right 10 any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to Ihe extent oCthe sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance or Propertyi Leaseholds. Borrower shall not deslro~.., damage or subsu!'oliall;y
<br />change the Propeny, allow the Propeny to deleriornle or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shaU not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower Cails to perfonn the
<br />covenanls and agreemenls contained in this Security Instrument. or there is a legal proceeding thlll may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whalever is necessary to protect Ille value of the Property and Lender's righl~
<br />in the Propcny. Lender's actions may include paying any sums secured by a lien which halo prionly (wer thi!. SecurilY
<br />Instrument. appearing in COUrl, paying reasonable attorneys. fees und enlenng on the PropeT1~' 10 make repair!.. Although
<br />Lender may take action under this paragraph 7, Lender does nol have to do so.
<br />Any amounls disbursed by Lender under this paragraph 7 ~hall hecome additional debt of Borrower !.ccun:d by Ihis
<br />Security lnstrument. Unless Borrower and L~nder agree to other term!. of paymenl, the~e amounts shall hear 10Ierest from
<br />the date of disbursement at the NCllt: rate and shall be payable. .....Ih IOtcr~t. urnn I1CltU."e from lcnder w Borrower
<br />requesting payment.
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<br />88-106836
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