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86- 103722
<br />UNIFORM COVi'NAN1S Borrower and Lender Covenant anus agr" a%follow%
<br />1. Payment or Principal and Interest; Prepayment and 1-ate Chart". Borrower %hall promptly Pay wheii dire
<br />the principal of and interest on Ihedebl evidenced by the Note and any prepayment and ante chatge%due under t he Mote
<br />2. Funill for Tests slid Immresee. Subject inapplicable law or to a wntic-. •.%c r by Lender, Borrower shall pay
<br />toLender on the day monthly payments are due under the Note, until the Note is paed a, (till, a sum ( "Funds ") equal Its
<br />oae- twelfih of: (a) yearly tares and assessments which may attain priority ever this Security lnstrument; fb) yearly
<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 arc 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 deposiis 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, analiyzing 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 he paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid. Lender shall not he requited 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 payment% of Funds payable prior to
<br />the due dales of the escrow items, shall exceed the amount required to pay the escrow item% when duc, the c%ce%% %hall he,
<br />at Borrower's option, ether 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 %hall pay to i.ender 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 i9 the Property is %old or acquired by Lender, Lendershall 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 credit against the sums secured by this Security Instrument.
<br />3. Application or Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 shall he applied: first. to maounts payable under: paragraph 2; second. to interest
<br />due; and last, to principal due.
<br />d. C ultritim Loess. Borrower shall pay all taxes, assessments, charges, lines 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 direcily 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 hen in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of the hen in, legal proceedings which to the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfehure 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 t he 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 harai-ds for which Lender
<br />requires insurance. This insurance shall he maintained in the amounts and for the periods, that Lender require-; The
<br />insurance carrier providing the insurance shall he chosen by Borrower subject to Lender's approval which shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a %tandard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If lender require-%, Borrower shall promptly give to fender
<br />all receipts of paid premiums and renewal notices. In the event of lost, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proofof loss if nol made promptly by Borrower
<br />Unless Lender and Borrower otherwise agree to writing, insurance proceeds shall he applied to restoration or repair
<br />of The Property damaged, if the restoration or repair is economically fcesibic and lender's security i% not lessened. If the
<br />restoralum or repair is not economically feasible or Lender's security would he 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 abandons the Property, or does not answer within 10 days a notice from Tender that the insurance carrier has
<br />offered to -.epic 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 lnstrument, 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 ac uired by Lender, tiorruwcr'% right to any insurance policies and prncml-. 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 acquisuton.
<br />6. Preservation sad 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 is 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 in perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Leader's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulalirins), then Lender may do and pay for whatever is necessary to protect the value of i he Property and Lender's rights
<br />in the Property. L.en ler's rains may include paying any sums secured by a Itet which has priority over this Sccuouy
<br />instrument, appearing in court, paying reasonable atioriieys' fees and entering on the Property to make repairs Although
<br />Lender may lake action under this Paragraph 7, Lender does not have to do sit
<br />Any amrwnls disbursed by Lender under this paragraph 7 shall hecomc additional debt of Borrower secured hs Nu%
<br />Security Instrument Unless Borrower and Lender agree 14) tither rcrn% of payment. these amount% %h all hear imerc%t from
<br />the date of ch"rsemeni at the Note rate and %hall be payahe, with micrc%1, upi%n notice from 1 rider io florriwer
<br />reyuesimg payment
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