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<br />88- i05829
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<br />af.'r?F.COIiD!D
<br />- 106856
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<br />UNIH1I1M COVI~N^N"S IJorrnwcr nnd Lcndcrco\lCTlUlIl nud ugrcc II'" f(lllow...
<br />1. I'aymt!nt of I'rlnclpol nnd Interest; I'repayment nod l.ute Chtt.rRcs. Unrrnwcr !olmll promptly PIIY when due
<br />the principlll ofuml interest onlhe debt evidenced by the Note nnd IIn)' prcpll)'mcnl :lnd Inte t.:hllrgc.. dul..! under the NUle.
<br />2. Funds for Tnxc5 Bnd Insurol1cc. Subject 10 npplicnhlc IllW or In II wrillcn wuiver by Lender. BorrnWt!T ..hall pll~'
<br />10 Lender nn the day monthly payments ure due under the Nole. unlillhc Note i!-. paid in full, II !oum ("Ful1I1'-.") cqullllll
<br />one-twelfth of: (a) yeurly tuxcs und ossessl1'lcnls which muy ll11nin prllmly 1l\'l.!T this Sccurit~' Instrument; (hI yenTI)
<br />leasehold payments or ground rents nn the ProperlY, if nny; (c) yearly hazard in!,urullcc prcmium~; nnll (d) YClIrly
<br />mortgage insurance premiums, irany. These items ure called "escrow itcm..," Lcnder mllY ci'ilimllle the Fund" due 011 the
<br />basis of current datu and reasonable estimates offU1ore c..<;crow items,
<br />The Funds shull be held in an insHtution the deposits or accounts of which arc insured or guurllntecd by II fedentl or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply Ihe Funds 10 pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing Ihe account or verifying the escrow itcms, unlc!'is
<br />Lender pays Borrower interest on the Funds and applicablc Inw permits lender to make such a charge. Borrower and
<br />Lender may Ilgree in writing that intere.c;t shllll be paid on the Funds, Unless an agreement is made or applicable law
<br />require.c; interesl 10 be paid, Lender shan not be required to pay Borrower any interest or earnings un the Funds. Lender
<br />shall give to Borrower, wilhout charge, an 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 pledged as additional security 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 itemfi, shall c;\cecd the alI10unt required to pU)o' lhc escrow items when due, the C,'l.:cS~ !'hall be.
<br />at Borrower's option, either promptly repaid 10 Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by lender is not sufficienl 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 prtyments 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. Ifunder paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior 10 the sale of the Property or its acquisition by Lender, any Funds held by Lender at Lhe Lime of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides olherwise. all payments received by Lender under
<br />paragraphs 1 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; Ilnd 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 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 that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Burrower 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: (3)
<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 proct:edings which in the Lender's opinion operate to
<br />prevenl Ihe enforcement of the licn 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 Security Instrument. If Lender determines that any part of
<br />the Property is subject to a Hen 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 />S. Hazard Insurance. Borrower shaH keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazl1rdc; for 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 subject to Lender's approval which shall nol be
<br />unreasonably withheld,
<br />AU insurance policies and renewals shaU 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 to Lender
<br />all receipls of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier 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 shall 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 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 abandons the Property, or does not answer wilhin 30 days a notice from Lender that the insurance carrier has
<br />offered to settle n claim. then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. The 3D-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not e;\tend or
<br />postpone the due date of the monthly payments rererred to in paragraphs I and 2 or change the amount of Ihe 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 to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Presenalion and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrun1enl is on a lea.c;ehold,
<br />Borrower shaH comply with the provisions of the lease, and if Borrower acquires fee titJe to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7, Protection of Lender's Rights'in the Property; Mortgage Insurance. ]f Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that 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 whatever is necessary to protect 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 />Inslrument, appearing in courl. paying reasonable attorneys' fees and enlering on the Propert). to make repairs. Although
<br />Lender may take action under this paragraph 7, Lender does nol have to do so.
<br />Any amounts disbursed by Lender under this parngmph 7 shall become additional debt of Borrower sCL.ured by this
<br />Security Instrument. Unless Borrower and Lender agree to other term!i ofpa)'ment. these amounls shall bear intcrL"St fwrn
<br />the date of disbursement at 1he Note rate and shall be payahle. wilh inleresl. upon notice from Lender III Hnrrnwer
<br />requesting payment.
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