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86- 102276
<br />UNIFORM CO'.'EVANTS Borrower and Lender cox'enant and agree as follows:
<br />1. Payment of Principal and interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Now and any prepayment and late charges due kinder! he Note.
<br />1. Funds for Taxes and insurance. Subject to applicable law or to a written waiver by Lender. Burro%%er 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 />I one- twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument: (b) }earl}
<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 Funds due on the
<br />basis of 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 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 arid
<br />Lender may agree in writing that interest shall he paid on the Funds. L nless 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 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 .hall he.
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monihh 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 io Lender am'
<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 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 1 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 ail taxes. assessments. charges. fines and impositions attributable to the
<br />Property which may attain priority over this Securit Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph '_. 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 promptk 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 in a manner acceptable to Lender. (b) contests ill 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 forfeitu; c 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 prionty over this Securit Instrument. Lender may gt:e Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth aboxe wiihln 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected in the Proper,}
<br />insured against loss by fire, hazards Included within the term "extended coverage" and any other hazards fur 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 appro%al which shall nor he
<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 glee to lender
<br />all receipts of paid premiums and renewal notices. In the excni of joss, Borrower shall give prompt notice In the Insurance
<br />carrier and Lender. Lender may make proof of loss if not made p. ornpi h by Borrower.
<br />Unless Lender and Borrower otherwise agree to untmg, in,- urance proceeds shall he applied In resturauon or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's sccunt is not lessened. If the
<br />restoration or repair is not economically feasible nr Lender's secunty would be lessened, the Insurance proceeds shall he
<br />applied to the sums secured bl, 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 se tle 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 Instrument, whether or net then due ]'he 30 -day period will begin
<br />when the notice is gn en.
<br />Unless Lender and Borrower otherwise agree ;n writing, any application of proceeds to principal shall not extend ur
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the anutum of the payments. If
<br />under paragraph IA the Property is acquired by Lender, Borrower's right to airy insurance policies and proceeds tesulttug
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent Of ills sums Secured h_% this Security
<br />Instrument immediatch prior u, the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destro y. damage of substantially
<br />change the Property• allow the Proper,} io deteriorate or commit waste If till, Secuntp Instrtuneni is on a leasehold.
<br />Borrower shall comply with the proytStonS of the lease• and if Borrower acquires fee title to the: Property. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger In wriung.
<br />7. Protection of Lenders Rights in the Property; Mortgage insurance. if Borrower fails !" perf„nn the
<br />eovenants and agteernents contained m I111S Security Ir1S[rnrllCnt, or there Is a legal proceeding that may sIglllticantl} afllcl
<br />Lender's rights In the Property (such as a prorceeding in hankrlli probate, tier condenulatn n "I It' lnln�ce !:oss Of
<br />regulations), then Lender may do and pay for whatexer is necessary to protect the xalue 1 f the Prripl n and l miler's it ehts
<br />Ill the Property. Lender's .w dons may in'lude paying any surns secured bs a hen uhf h has pit 1111 ;nu this *,e1u111s
<br />L lrl�Ir!1n1Y.tit, allpearlr,. Ill Y,ull patiing I h +rlahle atlorneyx 1et's and CIIICtin)Z MI ti1C Prr 11 l !i Ill�t rot ll \Ith. WR (
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