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<br />88- 107080
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<br />UNIfORM COVENANTS. Borrower and Lender coyenant and agree as follows:
<br />I. PayJllent of Principal and Interat; Prepayment and Late Ch.rges. Borrower shall promptly pay when due
<br />Ihe principal of and interesl on Ihe debt eyidenced by lhe NOle and any prepaymenland late charges due under Ihe Note.
<br />2, Fundi for Tua and IlIIurance. Subjecllo applicable law or 10 a wrilten waiyer by Lender, Borrower shall p~
<br />to Lender on the day "","'hly oaymenls.re due under the NOle, until the Note is paid in full, a sum ("Funds") equal 10
<br />one-twelfth of: (a) ye'u:~ ;".'fi and assessments which may anain priority over Ihis Security Inslrument; (b) year~
<br />I....hold payments or g'''~nd rents on the Propeny, if any; (c) yearly hazard insurance premiums; and (d) year)>,.
<br />monpge insurance p...miums, ifany. These items are called "escrow ilems." Lender may eslimatethe Funds due on IIii ;?
<br />biisis of cum III data and reasonable eslimat.. offuture escrow ilems. ::;" ~
<br />The Funds shall be held in an inslitution Ihe deposits or accounts of which are insured or guaranteed by a federal oc
<br />stale agency (including Lender if Lender is such an instilution). Lender shall apply the Funds 10 pay the escrow items., (Q
<br />Lender may nol charge for holding and applying the Funas, analyzing Ihe account or yerifying the escrow items. unleis' c.o .:)
<br />Lender pays Borrower inlerest on the Funds and applicable law perm. Is Lender 10 make such a charge. Borrower and ,_ -J
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires inlerestlo be paid, Lender shall not be required to pay Borrower any interest or earnings on Ihe Funds. Lender
<br />shall giye to Borrower, withoul charge, an annualaCl:ounting oflhe Funds showing credits and debits 10 Ihe Funds and the
<br />purpose for which each debilto the Funds was made. The Funds are pledged as additional security for Ihe sums secured by
<br />Ihis Securily Instrument.
<br />If Ihe amounl of the Funds held by Lender, logelher wilh the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay lhe escrow items when due, Ihe excess shall be,
<br />at Borrower's option. either promplly repaid 10 Borrower or credited to 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 as required by Lender.
<br />Upon payment in full of all sums secured by this Security Instrumenl, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under parsgraph 191he Propeny is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior 10 Ihe sale of the Propeny or its acquisition by Lender, any Funcis held by Lender at the time of
<br />application as a eredit againslthe sums secured by this Security Inslrument.
<br />3. Application of Payments. Unless app]icable law provides otherwise, all paymenls received by Lender under
<br />paragraphs I and 2 shall be applied: first, 10 late charges due under the Note; second, to prepayment charges due under Ihe
<br />Note: third, to amounts payable under paragraph 2; founh, to interest due; and last, 10 principal due.
<br />4, Cbarges; Ue... Borrower shall pay aJllaJ<es, assessments, charges, fines and imposilions anributable to the
<br />Propeny which may attain priority. oYer 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 thaI 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 direclly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shan promplly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing 10 the payment of the obligation secured by II.e lien in a manner acceptable to Lender; (b) conlesls in good
<br />failh Ihe lien by, or defends againsl enforcement of the lien in, legal proceedings which in the Lender's opinion operale to
<br />preyenl the enforcemenl of Ihe lien or forfeilure of any pan of Ihe Propeny; or (c) secures from Ihe holder of Ihe lien an
<br />agreement satisfaclory to Lender subordinaling the lien to Ihis Security Instrument. If Lender delermines lhat any pan of
<br />Ihe Propeny is subjecl to a lien which may altain priorily oYer Ihis Securily Inslrumenl, Lender may give Borrower a
<br />nolice identifying the lien. Borrower shall satisfy Ihe lien or take one or more or the aClions sel fonh above wilhin 10 days
<br />of Ihe giving of nolice.
<br />5. Hazard Inlurancc. Borrower shall keep the: improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included wilhin the term "exlended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be mainlained in the amounts and for Ihe periods that Lender requires. The
<br />insurance carrier providing Ihe insurance shall be chosen by Borrower subject to Lender's approval which shall nol be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable 10 Lender and shall include a standard mongage clause.
<br />Lender sball have the righllo hold the policies and renewals. If Lender requires, Borrower shall promptly give 10 Lender
<br />all receipts of paid premiums and renewal notices. In the event of Joss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proofofloss ifnol made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in wriling, insurance proceeds shall be applied 10 resloralion or repair
<br />of Ihe Propeny damaged, if Ihe resloralion or repair is economically feasible and Lender's securily is not lessened. If Ihe
<br />resloralion or repair is not economically feasible or Leader's security would be lessened, Ihe insurance proceeds shall be
<br />applied to the sums secured by this Securily Instrumenl, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Propeny, or docs not answer wilhin 30 days a notice from Lender Ihallhe insurance carrier has
<br />oll'ered 10 settle a claim, Ihen Lender may collccllhe insurance proceeds. Lender may use Ihe proceeds 10 repair or restore
<br />the Propeny or to pay sums secured by this Securily Inslrumenl. whelher or not then due. The 3ll-day period will begin
<br />when Ihe nOlice is given.
<br />Unless Lender and Borrower olherwise agree in writing, any applicalion or proceeds 10 principal shall nol extend or
<br />poslpone the due dale oflhe monlhly paymenls referred 10 in paragraphs I and 2 or change Ihe amount oflhe paymenls. If
<br />under paragraph 19 the Propeny is acquired by Lender, Borrower's righl to any insurance policies and proceeds resulting
<br />from damage 10 the Propeny prior 10 the acquisition shall pass 10 Lender to the extent of the sums secured by this Securily
<br />Instrument immedialely prior 10 Ihe acquisition.
<br />6, Praenatlon and Maintenance of Prope~; Leaseholds. Borrower shall nol destroy, damage or substanlially
<br />change the Propeny. allow Ihe Propeny to deleriorate or commil wasle. If tljis Securily Instrumenl is on a leasehold,
<br />Borrower shall comply with the provisions oflhelease, and if Borrower acquires ree title to Ihe Propeny, Iheleasehold and
<br />ree lille shall nol merge unless Lender agrees 10 Ihe merger in writing.
<br />7, Proteetion or Lender'. Rights in the Property; Monpg. IlIIurance. If Borrower fails 10 perform the
<br />covenants and agreements con!ained in Ihis Securily Inslrument, or Ihere is a legal proceeding lhat may significanlly atrect
<br />Lender's rights in Ihe Propeny (such as a proceeding in bankruptcy, probale, for condemnation or to enforce laws or
<br />regulations), Ihen Lender may do and pay for whatever is nccessary 10 protcctthe value of the Propeny and Lender's righls
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priorilY over this SecurilY
<br />Instrumenl, appearing in coun, paying reasonable anorneys' fees and enlering on the Propeny to make repairs. Allhough
<br />Lender may lake action under this paragraph 7. Lender docs not haye 10 do so.
<br />Any amounts disbursed by Lender under Ihis paragraph 7 shall become addilional del!I QrBorrower secured by Ihis
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment. these am'ouhts' shall bear interest from
<br />,be date of disbursement a' the NOle rate and shan be payable. wilh interesl. upon nOlice from Lender 10 Borrower
<br />requestinl payment.
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