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86- 103830
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I. PsymmtOfPrisciPal OW Intcrc@4 Prqm[YomW mod Late CbargeL 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. Fusids for Taxes said hisvirsam Subject to applicable law or to a written waiver by'Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due wider the Note, until the Note is paid in fulL a sum ("Funds-) equal to
<br />One-twtifth of- (a) yearly taxes and assessments, which my attain priority over this Security, Instrument; (b) yearly
<br />leaschold payments or ground rents on the Property, if any, (c) yearly hazard insurance prtmiumsi, and (d) yearly
<br />mortgage insurance premiums, if any. These items are called -escrow items." Lender may estiruste'the Funds due on the
<br />bow 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 item
<br />Lender may not charge for bokfts and applying the Funds, analyzing the account or verifying the escrow- itcms, unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borr'dwer and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is trade or, applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on'the.Fundi. Lender
<br />shall give to Borrower, without charge, an annual accountin$ of the Funds showing credits and debtits to the Funds and the
<br />purpose for which each debit to the Funds was in&&. The Funds am 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. 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 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 PaymautL 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, 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. ChwWw, 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 hen or forfeiture 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 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 which Lender
<br />requires insurance. This insurance "I 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 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 be applied to restoration or repair
<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 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 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 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 substantialk
<br />change the Property. allow the Property to deteriorate or commit waste. If this Secuni% Instrument is on a lea%ehold.
<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 Leader's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants OW 9117"ments contained in this Security Instrument, or then is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulation). then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender', rights in the Property. Lender's actions may include paying any sums secured by a lien which has prion't) over this SecuntN
<br />Instrument, appearing in court. paying reasonable attorrievs'fees and entenng on the Property to make repairs Although
<br />Lender may take action under this paragraph 7. Lender doe's not have to do so
<br />I
<br />Any � amourivs disbursed h%: Lender unde- the paragraph ' %flail h,-c,nic itilij,",11 &.1, ,.f fit •f I 01A Ct .,-cured h%
<br />Secunty Instrument Liniess Borrower and Lender agree to other term% of pavrrictit. the rar,,utjj% shall hear fl,r,1
<br />the date of disbursement at the Note rate and shall he 1%avitile, with interest. urKiii notice ti-tirl, I
<br />requesting payment
<br />-critict to H,,t-.oArr
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