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86- 101838
<br />UNIFORl,I CO4 EVAN I S Borrower and Lender covenant and agree as follows.
<br />i. Payment of Principal and Interest; Prepayment and late Charges. Borrower shall promptly pat when due
<br />the principal of and interest on the debt evidenced by the Nate and any prepayment and late charges due under the Not c.
<br />2. Funds for Taxes oul Insurance. Subject to applicable law or 10 a written waiver by Lender. Bon over shall pay
<br />to Lender on life day monthly payments are due under the Note, until the Note is paid in full. a sum (Fund. ") equal to
<br />j one-twelfth of: (a) yearly taxes and assessments which may altam priority o%cr this Security Instrument. (h) yearly
<br />f leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums: and (d) yearly
<br />nunigage insurance premiums, if any These items are called "escrow items." Lender may e%timate the Funds due on Elie
<br />basis ofcurrent 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 guarameed by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrou 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 Fund% and applicable law permits Lender to make such it charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds Unless an agreement i, made or applicable law
<br />requires interest to be paid, Lender shall not he 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 as additional security for the sums secured by
<br />this Security Insi rument.
<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 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 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 %urns 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 Iender. any Funds held by Lender at the time 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 beapplied: first. to late charges due under the Note: second. to prepayment charge%due under the
<br />Note; third, to amounts payable under paragraph 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 to 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 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 user this Security Instrument unless Borrower: (a)
<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 clays
<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 "extended coverage" and any other hazards for a high Lender
<br />requires insurance. This insurance shall he maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject 10 Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall he 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 ,hall he,
<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 front 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
<br />the Property or to pay sums secured by this Security Instrurnent, whether or not then due. The 30 -day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application Of proceeds 10 principal shall 1101 extend or
<br />postpone the cue date of the. monthly payments referred to in paragraphs I 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 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. Bonvuer,hall not destroy, damage or ,uhstantially
<br />change the Property, allow the Property t0 deteriorate or commit waste. If this SCCIMI1 Instrument is 011 it leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to t he 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 Borroucr fu!s to perform rite
<br />covenants and agreements contained in this Security Instrument, or there is it legal proceeding chat may ,igmhcantl% :fleet
<br />Lender's rights in the Prolxrty (such as it proceeding in bankruptcy, probate, flit condenrnallon or to enforce !acs or
<br />regulations), then Lender stay do and pay fir whatever is necessary to protect the value of the Property and Lender', rights
<br />in the Pralierly. tender',, actions star' include paying any vents secured by it lien which has prtoruy oecr the, Securny
<br />Instrument. appearing in court, paying reasonable attorneys' fees and entering on the Property roe make repairs. Ahhout h
<br />tender may take action under this paragraph 7. Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph ' ,hail hto roc adoklUonal dehi of Borrowct „rt ured he the,
<br />Securny Instrument Unless Hortower and Lender agree to other terms of VaMciir. thc,e arnomn, ,hall heir intcie,r loan
<br />the (laic of dishursemenr at the Note rate and shall he paeahlc. �%uh intcrr,t, 11p on .intro i? •n) I ender .r itc tr`N rr
<br />requesting payment.
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