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86-101658
<br />L; NIFORM COVEN Borrower and Lender ct yenam and agree as Pillow%
<br />L Payment of Principal and interest; Prepayment and late Charges. Borrower %hall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note r,d any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subjeta to applicable law or to a written waiter by Lender. Borrower shall pay
<br />to 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 lnsirument; (b) yearly
<br />leasehold payments or ground reacts on the Property, if arty; (cI yearly hazard insurance premiuns; and (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basisof current 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 shat; apph 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 and applicable law perrnns Lender to make such a charge Borrower and
<br />Lender may agree in writing that interest shall be. paid on the Fund, Unless an agreement is made cr applicable law
<br />requires interest to be paid, Lender shall riot be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an . nnual 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 secured by
<br />this 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 dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be.
<br />at Blrrr>wer'% option, either promptly repaid to Borrower or credited to Borrower on monthly payments of [:unds. If the
<br />amount of the Funds held 11y Lender a not sufficient to pay [he 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 instrument. Lender shall promptly refund to Borrower
<br />any Funds held ht Lender. If under paragraph Itt the Property IN 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 he %urn,s secured 111, 1111%Secuniy instrument
<br />3. Application of Payments. Uriless applicable law proy :des otherwise all payments rccci%ed by Lender under
<br />paragraphs I and 2 shall be applied. first, lit late charges duc under the NOIC, ;ccond, to prepay mew charges due under the
<br />Note: Third, to ;;mounts payable under paragraph 2. fourth, to interest due, and last. to principal due.
<br />4. Charges; Liens. Borrower shall pay All taxes, assessments, :barges, tinier And Impositions attributable to the
<br />Property which may attain prior;\' o%cr this Security Instrument. and leasehold payments or ground rents. If any.
<br />Borrower shall pay these obligations in the manner proytded in paragraph 2, or d not paid in that manner. Borrower shall
<br />pay them on time dircith' to the per%on owed p:,ymcnt- Borrower shall promptly fern »h to lender all notices of amount,
<br />I he paid under this paragraph. If Borrower makes these payments ehrce[ly. Borrower shall prumpth furnish to Lander
<br />receipt %evidencing the payments
<br />Borrower shall promptly di%charge any lien which has priority elver this Security In,trument unless Borrower cal
<br />agrees In writing to the payment of the obligation %ecored by the lien In a manner accepiahle III Lender: fbi con!ests al good
<br />faith the lien !w, or defends against enforcement of the lien in, legal procccdutcs which In the Lender'% opinion operate to
<br />prevent the enforcement of the hen or forfrlt :re of any part of The Proper,y, or tcl secures from the holder elf the lien an
<br />agreement satisfactory 111 Lender suheirdiniting the hen I,1 ihl% SCCllrl[y instrument If Lender determines that any part of
<br />the Property Is subject :o A hen which may attain priority o%er This Scc•urlt% Insirumcm, Lender may Pike Borrower a
<br />notice idemnf%ing the lieu Borrower' shall ,at4y the !tell or take ont• or more of the actions %1't forth aho%c within 10 days
<br />of the gi%ing of notice
<br />5. Hazard insurance. Borrower shall keep The Lrnpr•lernent, not% r%Istlnc or hereafter erected on the Property
<br />insured against loss by Tire. hazards Included within the term "extended :oLeragc" and an% other harirds for which Lender
<br />requires insurance. This insurance shall be maintained In The aniounts And for the penodi that Ixnder requires. The
<br />insurance carrier pro%Iding the ir•,%urrn,e shall he chosen by Borr.,t%ei suhieat r1 Lender', apprlyal which %hall not he
<br />unreasonably withheld.
<br />All Insurance policies And rVIICwal% %hall he accepiahle io Leintcr and Shall 111; ILItIC a %zatidaid mortgage clause.
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<br />Lender shall ha%e the right to hold Ile pohcies and renc%rals If Lender require %. Borrower ,;hail prumpth gr%c n+ Lender
<br />all receipts of pallet premiums :Ind renewal notices. In the e%ent of 111,,, liorrtlwc'r %hall gi \c prompt noticc 1(i the ;;isurancc•
<br />carrier arid Lender Lender map make proof of loss if not made prompth by Borrower
<br />Unless Lender and Borrower otherwise agree In writing, tn,uraecc• proceed% %bail be Arplled to rest; ration or rep: u
<br />of the Property damaged, if the restoration or repair is econorrucadly fcaoblc and Lender's security t, riot lessened. if the
<br />restoration or repair Is not economically feasible or Lender's security would he lessened, the insurance proceeds shall tic
<br />applied to the Burn% secured by this Security' Instruntent. whither elr not Then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or .file, not answer within I0 day, a notice from Lender that the insurance carrier hers
<br />offered to settle a claim, then Lender may collect the Insurance pros :ved% Lender may use the proceeds to repair or resulre
<br />the Property or to pay sums secured by tht% SCCLlrut Instruntent. whether or not then duc Fhc 30 -day period will begin
<br />w hen the noucc is gi%en.
<br />Unless Lcllder and Borrower ,thcrwnc agree In wnting.ally application Idprocecd, to principal %hail not extend or
<br />postpone the due date of the monthly parnems referred to ul paragraphs 1 and ' or change the amount ,01. the payment, if
<br />under paragraph Iy the Property Is acquired by Lcr•dcr, Borrower's right to any Insurance policies and proceed% re,ulung
<br />frown damage to the Property prior to the acquisition %hall pa,% to Lender 11, the c %ienr ,I Ilya ,lints secured ht I his SecurlIN
<br />Instrument Lmmediateh prior to ihcacquutnon
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not \Ir%troy..ianlagr ur ,uhsralntlal!y
<br />changr the Property. allow the Property ill deteriorate or coconut waste If this Sternly IlhtrUTTIVlll IN 1111 :1 !ea,ehold.
<br />B?rrtlwer Shall ciltnply with the pr Nvoons of the lease, and If Borrower acquires tee gilt- T.., the Propc:!%. they !ca%chold :lid
<br />fee till, ,hall r101 oleri!c unlr. %% Lender agrees Tel the merger' In w ruing
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. It Brrrowcl f:ol, Igo pert�orir, tho
<br />col,enallt%and , grcemenl%:onlained in this Sccurim Illstrnlnent. ,lr there Is ,l IcVa! !'r:A c•r111nC that 111.1\ ,r�mliianllt 3111'.'!
<br />I. ender % fights In the Property fSUch is A proceeding in hatrlkruplcy, rll +Aft I or t,l ltt. r
<br />rvgu Lvion%1, nccn I cod(r Inlay de and pity for ; %hatle%er I% necessart r' I reinI Ilit \ nil.0 ,I ific Pr pt ri\ :Intl I. o,iey , I', hi,
<br />in the Ptollerty lrn lei's „tech n% Was Include paving any 1111TIN WLWr:d by A 1,011 %% IV, h il.r, pn .rn% :,%rr it:n \t, tIr111
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<br />Ili If,unrnt appelnnv ell 'O kW. pit 111 , astmable ltorney% lee,. ji , nlelme I ,hr ! t, rt\ t rn l} rcp,lin 1 'i.,u h
<br />1 ruder n,,r\ ikt sr1, tin tier lu%pi.aFrlph 1 rl let doe's not has,. to do s.
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