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86-- 104685
<br />UNIFORM CO' evAvtS Borrower and Lender corenenl and agree asfollows:
<br />1. Pavment of Principal and interest; Prepayment and Late Charge%. 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.,,Funds for Taxes and Insurance. Subject 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 Note is paid in full, a sum ("Funds") equal to
<br />one- twelfth of: a) yearly taxes and assessments which may attain priority over this Security instrument: (b) 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 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 he 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 shal! 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. 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 %old 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 />'.rote; 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 shalt
<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 hen 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 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 gave Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of she actions set forth above within 14 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 shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance %hail he 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 34 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 34-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 />Lxisipone 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 tender, 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 %uhstantialty
<br />change the Property, allow the Property to deteriorate or commit waste If this Security Instrument is on a )easchold,
<br />Botrower shall comply with the provisions of the lease, and if Borrower acquires fec title to the Property, the leasehold and
<br />ce 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 tails to perform the
<br />co %chants and agreements contained in this Security Instrument, or there i% a legal proceeding that may significantly affeyt
<br />Lender's rights )it 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 rimmsary to protect the value ofthe Property and Lender's rights
<br />in the Property Lender's actions may include paying any sum% secured by a hen which has pnonty user this Securtty
<br />instrument, appearing in court. paymig reasutable an es ornevk' fen and enictirg tin J
<br />the Property to make repairs Althiaogh
<br />L ender may take actiim tinder this paragraph "., Lender does not hair to do tit
<br />Any arnouui %di%hurwd by Lender uudet ibis paragraph '7 shall hr!corne additional debt of Borrower seyun:d l's Ifit,
<br />urrtp Jnsrrumeirt I'nless K irr,�wer, anti Lend ='t agree 11 fir terms Of fiayment_ these amirtints sh;iil twrar n?terrsi ir;i t
<br />4it€aiiMc4i •nsrot zit tire Now rite ant shall he papalde, with Interest, apein nr,rtce Igor Irridei :n lf.rv, Vf
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