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<br />86-101777
<br />UNIWRM CQ4•ENAIVTS- Borrower and Lender :c > %cnant and agree as titliow,.
<br />1. Payment of Principal and Interest; Prepayment and Late ('barges. Borrower shall promptly pay when due
<br />the principal ofand interest on the debt evidenced by the Note and any prepastnent and late charges due under lilt: Note.
<br />2. Funds for Taxes and insurance. Subject to applicable law or to a written w giver by Lender. Borrower shad] pay
<br />to Lender on the day monthly payments are due under the \ore, until the Note is paid in full. a sun) ( "Funds') equal to
<br />one- twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument: (b) %early
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums:. and (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Fund, due on Ih-
<br />basis ofcurrent data and reasonable estimates of future escrow items.
<br />The Funds shall he 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 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 permits 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 or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge.. 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'ts additional security for tile• 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 flue, the cxccss shall be.
<br />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 sufncient 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 Instrument. Lender shall promptly refund to Borrower
<br />any Funds held by Lender. if under paragraph 19 the Property 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 the lime of
<br />application 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 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 last, to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, 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 the manner provided in paragraph 1— 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 makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payment,.
<br />Borrower shall promptly discharge any lien which has priority over [his Security Instrument unless Borrower: (s)
<br />agrees in writing to the payment of the obligation secured by the hen 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 operate to
<br />prevent the enforcement of the lien 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. 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 one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extendci! c n•erage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance 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 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 the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not 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 not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shalt be
<br />applied to the sums secured by this Security Instrument. whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons 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 the proceeds to repair nr restore
<br />the Property or to pay sums secured by this Security Instrument. whether or not then due. The �0 -day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />pos. 1pon. 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 acquired 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 the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Burrower shall not destroy. damage or substantca!y
<br />change the Property, allow the Property to deteriorate or commit waste. if this Security instrument IN ,rn a ic•asehold,
<br />Borrower shall comply with the pro%roons of the lease, and if Borrower acquires fee title to lilt- Property. the leasehold and
<br />fee titleshall not merge- unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property: Mortgage Insurance. It' Borrower fails to perform the
<br />covenants and agreements contained in this Secure Instrtunent, or there is a legit proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce Taws or
<br />regulations), then lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lender's actions map include paying any sums secured by a lien which has priority orcr tills Secnrlt\
<br />Instrument, appearing in court, paying reasonable attorneys' feeN and entering on the Properh to to akc• repairs. Although
<br />Lender may take action under thii paragraph'. Lender dtvw not have to do so.
<br />Any aruiunts disbursed hp L.cotdcr cinder till, paragraph 'shall become ❑ddtnnna! debt oI fiorrcnvcr ,ew7red hs t his
<br />Security Instrument Unless K,rrnwCr and Lender Agree In cab; r i<tnns o! pacmcnt, ;ilea ,nnonnls <ha!1 hear nticn•v from
<br />the date of disbursement at the \111e rate and stealt he p,nahie. wi,li ttt:'rest. ;i!am n qi,: 'mitt I e•ndcr t�• Hntt.,wrt
<br />l"Ilsesting Inryn5eni
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