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UNIFORM COVENANTS Borroweraad Lender covenant and agree as follows 86-- 102997
<br />1. PsYwettt of Prisciptd and huteresU Prgwywent sad late Charges, Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Faads for Ta :es cud Imuraaee. Subilm( to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Nate is paid in full, a sum ("Funds-) equal to
<br />one- twelfib of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (h) yearly
<br />leasehold
<br />payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, ifany. 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 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 />purpou 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 payment; 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 sums secured by this Security Instrument, Lender shall promptly refund ;o 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 to 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
<br />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 the hen forfeiture
<br />of or of any part of the Property; or (c) secures from the holder of the lien an
<br />i
<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 Borrower
<br />may gne a
<br />notice identifying the lien_ Borrower shall satisfy the hen or take one or more of the actions set forth above wit hin 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the oriti—cments now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any outer hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that tender 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 he applied to restoration or repi.ir
<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 shall 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 from Lender
<br />a notice 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 or
<br />postpone the due date of the monthly payments referred to in paragraphs I 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 arid proceeds resulting
<br />from damage to the Property prior to the acquisition shall to Lender
<br />pass to the extent of the sums secured by this Security
<br />Instrument immediately pnor to the acquisition.
<br />6. Preservation and Maintenance or Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate
<br />or comnut waste. If this Security instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Properly, 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 affect
<br />tender's rights in the Property (such as a proceeding in bankruptcy, for
<br />probate, condemnation or to cnf2rire laws it
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and !.ender rights
<br />Y
<br />in the Property- Lender's actions rnay include paying any sums secured by a lien which has priority o+et this S cumv
<br />instrument, appearing In court, paying reasomable attornes' fees
<br />and entering on the Property to make repairs ,Although
<br />Lender may take action tinder this paragraph 7. Ixnder dot'-.,, not have do
<br />I
<br />to sir
<br />Any amounts disbursed by Lender under this paragraph ? shall become additional debt ,d loot r,-w cr xcui ed h% it,,,
<br />Security Instrurent Unless Borrower and Lcnder agree to ctlier turns
<br />otpaynient. these mnounts shin tu•ar intrrc.t trop;
<br />the date of oh,bursement it the Note rate snit shall tx payable, wnli tntcre.t. upon truce fins l coder it Iforrrwrr
<br />requesting paytncni
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