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<br />UNIF()J(M O>VENAN'rs Borrower nnd Lendcrcovcnunt nnd IIgrcc liS follow..
<br />1. Payment of Principal and Interest; I'repayment ond Lote Chon~es. Borrower ,hull promp!ly PIlY whell due
<br />the principal of and inlcrest 011 the debt evidenced by the Note nnd lIny prepaymcllllllld IlIle chllrgc'i duc under the Note,
<br />2, Funds for Taxes Bod Insurance, Subjccl to applicable Inw or to II written waiver hy Lender, norrower shall PllY
<br />10 Lender nn Ihe day monthly pllyruents fore due under the Note, untillhe Nole is pnid in full, U MInt ("Funds") equal to
<br />onc.twclfth of: (a) yearly taxes and IlSscSSntcnt5 which may uUain prioril)! ovcr Ihis Securily Inslrumenl; (b) yearly
<br />lenschold pa)'ments or ground renls on the Property, If un)'; (c) ycar!) hllzllrd insurunce premiums: and (d) yearly
<br />mortgoBe insurDnce premiums, ifDny, These items are called "escrow items," Lender mllY estinUlIC Ihe Funds due on Ihe
<br />basis of current datn and reasonllble estimates offulure escrow items,
<br />The Funds shnH be held in nn in::tlitulion the deposits or DCCOun!s of which ore insured or gUllrnntced by a federal or
<br />state agency (including lender if Lender is such nn institution), Lender shall npply Ihe Funds to poy the escrow items,
<br />lender may not dlOrge for holding and applying the Funds. onalY7.ing the occount or vcrifying the l.'Scrow items, unless
<br />lender pays Bnrrower interest on the Funds and applicable law permits lender to muke such a churgc. Borrower Dnd
<br />[cnder may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires inlerest to be paid, Lender shall not be required to poy Borrower nny interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, nn annual accounting of the Funds showing credils and debits to the Funds and the
<br />purpose for which each debit to Ihe Funds was mode, The Funds are pledged os additional security for the sums secured by
<br />Ihis 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 doles of the escrow items. shall exceed the amount required 10 pay the escrow items when due, the eltcess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited 10 Borrower on monthly payments of Funds, 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 a.. required by Lender.
<br />Upon payment in full of all sums secured by this Security Inslrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender, If under paragraph 19 the Properly 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 lhe time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application or 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 Inst, to principal due.
<br />4. Cbargesj Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attniu priority,over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragruph 2, or if not paid in that manner, Borrower shan
<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 the.c;;e payments directly, Borrower shall promptly furnish (0 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 oflhe obligation secured by the lien in a manner acceptable to Lender; (b) conlests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate 10
<br />prevent the enforcement of the lien or forfeiture of any part of the Properly; or (c) secures from the holder of the lien an
<br />agreement satisfactory 10 Lender subordinating the lien to this Security Instrument, If Lender determines that any par1 of
<br />the Property is subject to a lien which mllY altain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien, Borrower shall slltisfy the lien or take one or more of the actions sd for1h ahove within 10 days
<br />of the giving of notice.
<br />S. Hazard. Insurance, Borrower shall keep the improvements now existing or hereafler erectcd on Ihe Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazllrds for which Lender
<br />requires insurance. This insurance shall be mainlained in the amounts and for the periods that Lender requires, The
<br />insurance carrier providing the insurance shall he chosen by Borrower subjecl to Lender's approvlll which shall nOI be
<br />unreasonably withheld,
<br />All insurance policies and renewnls 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 to Lender
<br />all receipts of paid premiums and renewal notices. In lhe event of loss, Borrower shall give promptllotice to the insurance
<br />carrier and Lender. Lender may make proof ofloss ifnot 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 nol 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 nol then due, with any excess paid to Borrower. If
<br />Borrower nbandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds, Lender may use lhe proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not Ihen due, The 30-day period will begin
<br />when lhe notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any Dpplication of proceeds 10 principal shall not extend or
<br />poslpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments, If
<br />under paragraph 19 the Property is ncquired 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 tile sums secured by this Security
<br />Instrument immediately prior to the acquisition,
<br />6. Preservation and Maintenance of Property; Leaseholds, Borrower shall not destroy, damage or substantially
<br />change the Property, aIlow the Property to deteriorate or commit waste, If this Security InSlrument is on a leasehold,
<br />Borrower sholl comply with the provisions of the lease, and if Borrower acquires fee title to the ProperlY, the leasehold and
<br />fee tille shall not merge unless Lender agrees to the merger in writing,
<br />7, Protection of Lender.s Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significanlly affecl
<br />lender's rights in rhe Property (such as a proceeding in bankruplcy, probate, for condemnalion or to enforce Jaws or
<br />regulations), then lender may do and pay for whatever is necessary to protect the value of the Property IInd Lender's rights
<br />in the Property. lender's actions may include paying any sums secured by a lien which has prioril}' over this Security
<br />Instrument, appearing in court, paying reasonable auorneys' fees and entering on the Property 10 make repairs, Although
<br />Lender may take aclion under this paragraph 7,Lender does not have 10 do SQ,
<br />Any amounts disbursed b)' Lender under this paragraph 7 shall become additional dehlllf Bornlwcr "iel'Ufed by this
<br />Security Instrument. Unless Borrower and lender agree to other terms of pay men I, tlll.~e amllunt~ \hulI heur U1Icrest fWIll
<br />the dale or disbursement at the Note rule and shall he payahlc. with illTcrc\t. upon 1l011l:C frum !.L'ndl'r to Bnrrower
<br />reque5llDg payment,
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<br />88-106902
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