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<br />87- 103711
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the
<br />IF
<br />principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay uo
<br />Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ( "Funds ") equal to
<br />one- twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument, (b) yearly leasehold
<br />payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance
<br />premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the basis of current data and
<br />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 shall apply the Funds to pay die escrow items. lender
<br />a may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays
<br />Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and lender may agree in
<br />writing that interest shall be paid tin the Funds. Unless an agreement is made or applicable law requires interest to be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without
<br />charge, an annual accounti ng of the Funds showing c redits and debits to die Funds and the purpose for which each debit to the
<br />Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the
<br />due dates of the escrow items, shall exceed the amount required uo pay the escrow items when due, the excess shall be, at
<br />Borrower's option, either promptly repaid ao Borrower ur credited tit 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, Burrower shall pay to lender any
<br />amount necessary to make up the deficiency in tine or more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Security Instrument, lender shall promptly refund it) Borrower any
<br />Funds held by lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than
<br />immediately prior to the saleof the Property or its acquisition by Lender, any Funds held by lender at the timeof application
<br />as a credit against the sums secured by this Security Instrument
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall he applied: first, to lure charges due under the Note; second, ro prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2: fourth, to interest due, and last, to principal due.
<br />-f. Charges; Liens. Burrower shall pay all taxes. assessmenu, charges, fines and intl-,sitions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold paymentsorgrtund rents, if any. Burrower
<br />shall pay these obligations in the mariner provided in paragraph 2, or it not paid in that manner, Borrower shall pay themon
<br />timedirectly to the person owed payment Burrower shall promptly furnish to Lender all notices of amounts cube paid under
<br />this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing
<br />the payments
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a>
<br />agrees in writing to rile payment of theobligation secured by the Gen tit a manner acceptable to Lender, (6) contests in good
<br />faith the lien by, or defends against enforcement of doe lien tit, legal proceedings which in the lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property: or tU 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 the
<br />Property is subject to a lien which ITlay attain priority over [tits Security Instrumem, lender may give Borrower a notice
<br />identifying the lien. Burrower shall satisfy the hen or take one or more of rile actions set forth above within 10 days of the
<br />giving of notice.
<br />5. Hazard Insurance. Borrower shall keep rile 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 hazards for which Lender
<br />requires insurance. This insurance shall be mamtamcd in rile amounts and fur the periods that Lender requires. The
<br />insurance carrier providing the insurance shall he chosen by Borrower subject no 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. Lender
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<br />shall have the right to hold the policies and renewals. if Lender requires, Burrower shall promptly give in Lender all receipts
<br />of paid premiums and renewal notices. In itte event of loss. Br rower shall give prompt not no the insurance carrier and
<br />Lertder lender may make proof of loss if not made promptly by Borrower
<br />Unless Lender and Borrower otherwise agree in writing, insurance priceeds shall be applied to restoration or repair
<br />of die Property damaged, if the restoration or repair is economically feasible and lender's security is not lessened. If the
<br />restoration ur repair is not economically feasible or fender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether ur not then due, with any excess paid to Borrower. if
<br />Borrower abandons the Property, or does not answer within io 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 the proceeds to repair or restore the
<br />Property or to pay sums secured by this Security Instrumem, whether or not then due. The W -day period will begin when the
<br />notice is given.
<br />Unless tender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend ur
<br />Postpone the due date of the monthly payments referred to to paragraphs I and ? ur change the amount of the pay'me'nts. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right uo any insurance policies and proceeds resulting
<br />from damage ro the Property prior ro rile acquisition shall pass to Lender no the extent of the 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, allow the Property ro deteriorate or commit waste. If this Security Instrument is tin a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee tide 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. If Burrower fails to perform the covenants
<br />and agreements contained in this Security Instrument, ur there is a legal proceeding that may significantly Affect lenders
<br />rights in the Property (such as a proceeding in bankruptcy, probate, for notdemnat ion or to enforce laws or regulations 1, then
<br />Lender may du and pay her whatever is necessary to protect the value of the Property and Lender's rights in the Property.
<br />Lerxkr s actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in
<br />L zntrt, paying reasonable attorneys' fees and entering tin the Prolserty to make repairs Although Lender may take action
<br />utxkr this paragraph 7, }ender dues not have to oho sir
<br />Any antetunts disbursed by Lender under this paragraph 7 shall become additional debt of Burrower secured by [!us
<br />Security Instrument. Unless Btrrnwer and Lender agree mother terms of payrne•nt, these amounts shall hear nnvivc t hum
<br />the dote tot disbursement at the Note rate and shall be payable, with interest, tip ❑t ootnc from Lender to Borrower requesting
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