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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 87-102281
<br />1, Payment of Principal Sad Interest; Prepayment
<br />and Late Charges, Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any
<br />prepayment and late charges clue under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or ton written waivcr by Lender, Borrower shall
<br />to Lender on the day, monthly
<br />pay
<br />payments are clue under the Note, until the Note is paid in full, a surn ( "Funds ") equal to
<br />one-twelfth of: (a) yearly taxes and assessments which may
<br />attain priority over this Security Instrument: (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d)
<br />mortgage insurance premiums, if any. These
<br />yearly
<br />items are called "escrow items." Lender may estimate the Funds due on The
<br />basis of cuffent data and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender
<br />shall apply the Funds to pay the escrow items,
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Funds
<br />and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless
<br />an agreement is made or applicable law
<br />requires interest to Le paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge,
<br />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
<br />this Security Instrument.
<br />secured by
<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
<br />pay the escrow items when due, the excess shall be,
<br />fi at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to the
<br />pay 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
<br />secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />r.. any Funds held by Lender. If under paragraph 19 the Property is sold
<br />or acquired by Lender, Lender shall a I no later
<br />than immediately prior to the sale of the Properly or its acquisition by Lender, any Funds held by Lender atpthe time
<br />application as a credit against the
<br />of
<br />sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides
<br />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
<br />paragraph 2; fourth, to interest due; and last, to principal due.
<br />4• Charges; Liens. Borrower shall pay all taxes, assessments,
<br />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
<br />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
<br />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 payment of the obligation secured by the lien
<br />in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion
<br />prevent the enforcement of the lien
<br />operate to
<br />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.
<br />IF Lender determines that any part 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
<br />of the giving of notice. one or more of the actions set forth above within 10 days
<br />5. Hazard Insurance. Borrower shall keep the improvements now
<br />insured
<br />existing or hereafter erected on the Property
<br />against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the
<br />insurance
<br />periods that Lender requires. The
<br />carrier providing the insurance shall be chosen by Borrower subject to 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 tight to hold the policies and renewals. If Lender
<br />requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Leader. Lender may make loss
<br />proof of if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise in
<br />agree writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Leader's security is not lessened.
<br />restoration or repair is not
<br />economically feasible or Lender's securit If the
<br />would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether it
<br />not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Properly, or does not answer within 30 days a notice from Lender that the insurance
<br />offered to settle a claim, then Lender
<br />carrier has
<br />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
<br />when the notice is given. or not then due. The 30 -day period will begin
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the dire date of the monthly payments referred to in paragraphs I 2
<br />and or change the amount of the 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
<br />acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservati" sad Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If
<br />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
<br />fee title shall not merge unless Lender
<br />agrees to the merger in writing. and
<br />7• Prelaetion of Leader's Rights in the Property;
<br />Mort
<br />covenants and gage Insurance. If Borrower fails ni perform the
<br />agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lenders rights in the Property (such as
<br />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
<br />in the Property. Lender's actions
<br />rights
<br />may include paying any sums secured by a lien which has priority over this Security
<br />Lender may take action
<br />L Instrument. appearing in court• paying reasonable attorneys' fees and entering on the Property to make repairs.
<br />Although
<br />under this paragraph 7. Lender does not have to do so.
<br />Any amounts disbursed by lender under this paragraph 7 shall become
<br />additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
<br />the date of disbursement at the Note
<br />rate and shall be payable, with interest, upon notice from Lender to Hornmer
<br />requesting payment-
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