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86- 102585
<br />UNIFORM COVENANTS Borrower and Lender coven ant and agree as follows
<br />t. Payment of Principal and Interest; Prepayment and Late t.'harges. Borrower shall promptly pay w hen due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the `ate.
<br />2. Funds for Taxes and insurance. Subject l) applicable law or to a written waiver by Lender. Borrow er shaIi pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ( "Fund% -) equal to
<br />one - twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument. (h) %carp
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums: and fd) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of cu"cnt 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 fincluding 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 Funds 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 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 Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds !f the
<br />amount of the Funds held by Lender is nc:t sufficim, to pay the escrow items when duc. 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 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 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 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 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 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 foriviture 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 hen 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 />S. 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 w hich 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 he chosen by Borrower subject to Lender's approval which shill not he
<br />unreasonably withheld
<br />All insurance policies and renewals shall he acceptable to Lender and shall include a standard mortgage i leuse
<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 riot lessened. If the
<br />restoration or repair is riot economically feasible or Lender's security would be lessened, the insurance proceeds shall 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 aoandons 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 or restore
<br />the Property or to pay sums secured by this Security Instrument, 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 to principal shall not extend of
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the pay menu If
<br />under paragraph 14 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. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste If this Security Instrument n on a leasehold,
<br />Borrower shall comply with the provisions 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 writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly aifet t
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws ar
<br />regulations), then Lender may tit) and pay'for whatever is necessary to protect the value of the Property and L ender's nchts
<br />in the Property Lender's actions may include paying any sums secured M a hen which has priority ever ihn Securers
<br />Instrument. appear ±rig in couri, paymg reasonahle attorneys' fees and entering on the Property to make repairs •\11hoU.01
<br />i..ender may take action under this paragraph ". i ruder does not have to do so
<br />Any minounts thsbursed by Lender under this paragraph ' shall become uhtitional debt of lorrower Nt -i tired h� =his
<br />S - Enslrumenr Unless Borrower and Lender agree to other wrens of Payment. these arlwuwf shall N -a, r,irr-I 1 -11)
<br />the date of dishurcroem st Ue• Note rate and shall tc payahle, wish ,ntea•%I. upH.rl ntiUrc L*ivn 1 ruder
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