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86-- 109597
<br />UNIFORM COVF.t,IANTS. Borrower. and Lender covenant and agree as follows:
<br />L Payaleat of Mntipal and iaterest; Prepialren at sad J ate Charges. Borrower shall promptly pay when due the
<br />Principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note-
<br />t 1vaida: for Taira and Itu mince. Subject to applicable law or to a written waiver by Lender, Borrower shall hay to
<br />Lender on'the day monthly payments are due under the Note, until the Note is paid in full. a sum ( "Funds") equal to one -
<br />twelfth of: (a) yearly taxes and assessments which may attain priority over this Security instrument; (b) yearly leasehold
<br />payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums: and (d) yearly mortgage insurance
<br />premiums, if any. These items are called "escrow items." Lender may ^stimate the funds due on the basis of current data
<br />and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accost;,, of which are Insured or guaranteed by a federal or
<br />state agency (including tender if Lender is such an institution). Lende- shall apply the Funds to pay the escrow items. lender
<br />may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless 1 ender pays
<br />Borrower interest on the Funds and applicable law permits Lender to make s :ch a charge. Borrower and Lender may agree in
<br />writing that interest shall be paid on the Funds. Unless art agreement is made or applicable late requires interest to be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Gender shall give to Borrower, without
<br />charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to
<br />the Funds was made. The r'unds'are pledged as additional security for the Burr• secured ',y this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior t,-, the
<br />due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be, at
<br />Borrower's option, either promptly repaid to Borrower or credited on rrionthly payment, of Funds. If the amount of the
<br />Funds held by Lender is not +uffcient to pay the escrow items when due. Borrower shall pay to lender any amount
<br />necessary to make up the deficiency in one t)r more payments as required by Lender
<br />Upon payment in full of all sums secured by this Security: In trument, Lender ,hall promptly reftind Io Borrower and:
<br />Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender. Lendcr shall apply, no later than
<br />immediately prior to the sale of the Property or its acqutsihon 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 I and 2 shall be applied! first, to late charges due under the Note; second, us prepayment charges due tender the
<br />Note; third. to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charger Llens, Borrower shalt pay all ,axes, assessments. charges, fines and impositions attributable to the
<br />Property ,which may attain priority over this Security instrument, and itasehold payment, or ground rents, if anv Borrower
<br />shall pay these obligations m the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on
<br />time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under
<br />this paragraph. if Borrower :Hakes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the
<br />payments.
<br />Borrower shalt promptly discharge any lien which has priority over this Security Instrument rnless Borrower (at agrees
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<br />it.. writing to the payment of the obligatu.m ,ecured by the lien in a ntu.ner acceptable to Lender: ib) contests in good faith
<br />the lien by, or defends against enforcement of the lien in, legal proceedings which in the fender's opinion operate to prevent
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<br />the enforcement of the lien of forfeiture of any part of the Property; or (c) secures from the holder of the lien an agreement
<br />satisfactory to Lender subordinating the lien to this Security Instrument if Lender determines that any part of the Property is
<br />subject to a lien which may attain prority ever ,his Security Instrument, Lendcr may give Borrower a notice !dent -wing the
<br />lien. Borrower shall satisfy the !ten or cake one or more of the actions set forth above within i0 days of the giving of notice.
<br />S. Hazard insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against Ims. by fire, hazards included within the term "extended coverage" and arty other hazards for which Lender requires
<br />insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier
<br />providing the insurance shall he chosen by Borrower subiect to Lender's approval which shall not be unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender
<br />shalt have the right to hold the policies and renewals. if Lender requires, Borrower shall promptly give to Lender all receipts
<br />of paid premiums and renewal notices. In the event of loss. Borrower shall give prompt notice to the insurance carrier and
<br />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 of
<br />the Property damaged, if the rtstorarion 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 he lessened, the insurance proceeds shall he
<br />applied to the sum secured by this Securnv 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 coffee, the insurance proceeds Lender may use. the proceeds to repair or restore.
<br />the Property onto pay sums secured by this Securtty instrument, whether or not, then due. The 3(? day period will begin whet.
<br />the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds •,t principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or char:- he amount of the payments. 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. PreserratWel and Matntesaacr of Property; Leasehold+. Borrower shall not destroy, damage or substantially change
<br />the Property, allow the Property to deteriorate or commit waste If this Security Instrument is on a Icasehold, Borrower shall
<br />comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and fee title shall not
<br />merge unless Lender agrees to the merger in writing.
<br />7. Preteetfoa of I eader's Rkists III Ile Property; Mortgage insurance. If Borrower fail!. to perform the covenants and
<br />agreements contained in this Security Instrument, or there is a legal proc:ced!ng that may significantly affect Lender's rights in
<br />the Property (such as a prkXeeding In bankruptcy, probate, for condemnation or ,o enforce laws or .T ' tail, then t ender
<br />may do and pay for whatever is necessary to pone+, the value of the Property and f.cnder's rightsi IK� Prc petty. Lender'+
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<br />We- Ons may Include paying any sum ,.-cured by a lien which has priority over this 'security Instrument, appearing to court.
<br />j paying reasonable attorneys fees and ntering on the Property to make repairs Although Lender may take ac!wn under tons
<br />paragraph 7 Lender does rest have o d„ so ,Ant amounts disbursed by !.ender under the. paragraph hail become
<br />adrliiwnaJ ikbi of 13e,rru.ef a used bV tfu, Security ins ±rumens Unless Borrower Arid I. Crider agree , „iPttr c.. n: or
<br />Payment. [hose amouma ,Tait hear ntcrts; from ,ht date of di,hufsement at the tiotc •ale and shall he a,.1hi.. "01 ,ntr.c,t,
<br />v,oin riovic:e from Lendcr ,e ils,rroMrf i'er�'61t!,t,(lg payment
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