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<br />UNIFOItM CoVENANTS. Borrower and LcnderCoven.nl Ind agree as follows:
<br />1. P.)'III<Dt of PrI....... III1d Int....t; Pr....ym.nllll1d Lot. Charg.., Borrow.r shall promptly pay when due
<br />the principal orand interest on the debt evidenced by the Note Ind any prepayment ond lale charges due under the Note.
<br />Z. FunddorTu"lII1d IDlUfIII1.e. Subjecllo .pplh:.bl.law orto a writt.n waiver by Lender, Borrowershall pay
<br />10 Lender on the dlY monthly payments Bre due under the Note, unli) the NOle is paid in full, a sum ("Funds") equal to
<br />onC'!.twe1nh of: ea) yearly laxes and assessments which may attain priority over Ihls Sec:urity Instrument; eb) yearly
<br />leasehold ...yments or ground renls on th. Property, if any, (.) yearly hazard insurance pr.miums; and (d) yearly
<br />mOr1Slse insurance premiums, if Bny. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of .urrent dala and reasonable estimales offulure escrow items.
<br />Th. Funds shall be: held in an instilutlon the deposilS or a.counlS ofwhi.h are insured or guaranteed by a red.ral or
<br />state Igen.y (In.luding Lender ir Lender ia such an Instilulion). Lender shall apply Ihe Funds to pay th. escrow ilems,
<br />Lend.r OIlY not .hlrge for holding Ind applying the Funds, analyzing the account or verifying Ihe escrow items, unless
<br />Lender pays Borrower Interesl on Ihe Funds and applicable law permits Lender to make such a charge, Borrower and
<br />Londer llUly agree in writing 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 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 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 Securily Instrumenl,
<br />Ifthe Imount of the Funds held by Lender, togelher wilh the fUlure monlhly paym..1S or Funds payable prior 10
<br />the due date! of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be.
<br />at Borrower's option, eitber promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amounl oflhe Funds held by Lender is not sufficient 10 pay the escrow items when due, Borrower shall pay to Lend.r any
<br />amount necessary to make up the deficiency in one or more payments 8S required by Lender.
<br />Upon payment in full of all sums secured by Ihis Security Instrum.nt, 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 the sums secured by this Security Instrument.
<br />3. AppU..Uoo of Payments. Unless applicable law provides olherwise, all paymenlS received by Lender under
<br />paragraphs 1 and 2 sball 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. Cwaa; IJena. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority, over Ibis Security Inslrument, and leasehold paymenlS or ground renlS, if any.
<br />Borrower shall ...y these ohligations in the manner provided in paragraph 2, or if nol paid in Ihat manner, Borrower shall
<br />pay Ihem on time directly to the person owed payment. Borrower shall promplly furnish to Lender all notices of amounlS
<br />10 be: paid under this paragraph, If Borrower makes these paymenlS directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the paymenlS.
<br />Borrower shaD promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment oflhe ohligation secured hy the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the Ii.. in, legal proceedings which in Ihe Lender's opinion operate to
<br />prevenl the enforcemenl of the lien or forfeiture of any part of the Property; or (e) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrum~nt. If Lender detennines that any pan 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 sball satisfy the lien or take one or more of the actions set forth above within 10 days
<br />oflh.giving of no lice.
<br />5. Hazan! Iomronce. Borrower shall keep the Improvements now existing or herearrer erected on Ihe Property
<br />insured against loss by fire, hazards included within Ihelena "extended cov.rage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods thai Lender requires. The
<br />insurance carrier providing the insurance shall be: chosen by Borrower suhjecl to Lender's approval which shall nol be:
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be: acceptahle to Lender and shall includ. a standard mortgage clause.
<br />Lender shaJJ have the right 10 hold the policies and renewals, If Lender requires, Borrower shall promptly give 10 Lender
<br />all receipts of paid premiums and renewal notices..ln lhe event or loss, Borrower shall give prompt notice to the insurance
<br />carncrand Lender. Lender may make proorofloss ifnol made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in wrilinS. insurance proceeds shall be applied to restoration or repair
<br />or the Property damaged, if the restoration or repair is economically Feasible and Lender's security is nol iessened. IT the
<br />restoration or repair is not economically feasible or Lender'. security would be lessened, the insurance proc:eeds shan be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with Bny excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />olfered to settle a claim, then Lender may collectlhe insurance proceeds. Lender may use Ihe proceeds to repair or restore
<br />the Property or to pay sums secured by Ihis Security Inslrumenl, whether or not then due. The Jlklay period will be:gin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shan nol extend or
<br />postpone the due date oflhe monlhly paymenlS referred to in paragraphs I and 2 or change the amount of the paymenlS. If
<br />under paragraph 19 the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />from damage 10 Ihe Property prior to the acquisition shall pass to Lender to th. extenl ofthe sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. ~rnt1on III1d Maintenance of ProperJl'; Leueholda. Borrower shall nol destroy. damage or subslantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on B leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee tille to the Property. the leasehold and
<br />fee title shall not merse unless Lender agrees to the merger in writing.
<br />7. Protectloo of Lender'. R1ghta In the Property; Mortpge Insuflll1ce, If Borrow.r fails 10 perform Ih.
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly affec:l
<br />Lender's rights in the Propeny (such as a proceeding in bankruptcy, probate, for condemnation or to enforce Jaws 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. Lemler's actions may include paying any sums secured by a lien which has priority over this Security
<br />Imtrument, appearing in court, paying reasonable attorneys. fees and entering on the Property to make repairs. Allhough
<br />Lender mlY like action under Ihis paragraph 7, Lender does not havelodo so,
<br />Any amounlS disbursed by Lender under this parlgraph 7 shall become additional debt ofBorrow.r secured by Ihi,
<br />Security Instrument. Unless Borrower and Lender agree to olher terms or payment. these amounts shall bear interest from
<br />tbe date of disbursement at the Note rate and shall be payable, with intercst. upon notice from Lender 10 Borrower
<br />requesting pIIyment.
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<br />88- 106898
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