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86-- 104922
<br />UNIMPLM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payinest of PAadptl and [at~; Prepayerew and Late Own". 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 />2. Friar& for Taxes and lawnace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to,
<br />Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sure ( "Furub ") 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 `round 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 estimate 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 accounts of which art 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. Lender
<br />may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays;.
<br />Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Leruler may agree in
<br />writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid.
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, "wit hour
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<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 Funds are pledged as additional security for the sums secured by this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to 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 monthly payments of Funds. if the amount of the
<br />Funds held by Lender is not sufficient to pay the escrow items when due, Borrower "shall pay to Lender any amount
<br />necessary to make up the deficiency in One or more payments as required by Lender -
<br />Ltpon payment in full of all sums secured by this Security Instrument. Lender shall promptly refund to Borrower any
<br />.Funds held by Lender. if under paragraph 14 the Property is sold or acquired by Lender, Lcndtr shall apply, no later than
<br />immediately prior to the We of the Property or its acquisition by Lender, any Funds held by tender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />J. Application of Payments. Unless applicable law provides otherwise, alt payments received by Lender under,
<br />paragraphs !and 2 shall be applied: first. to )au charges due under the Note; second: to prepayment charges due under the
<br />Note: third, to amounts payable under paragraph Z; fourth, to interest due; and last. to principal due-
<br />s. Large:: Leas. Borrower shall pay all tastes_ assessments, charges. fines and impositions attributable to the
<br />Property which may attain priority over this Security tnstniment, and leasehold payments or ground rents. if any. Borrower
<br />shall pay these obligations in 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 makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the
<br />payments.
<br />Borrower shall promptly discharge any hen which has priority over this Security Instrument unless Borro -cry (a) agrees.
<br />in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender: (ds) contests in good faith
<br />the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent
<br />the enfarcement of the lien of forfeiture of any part of the Property. or (c) secures from the holder of the ten an agreement
<br />satisfactory to Lender subordinating the lien to ttiu iccurtt. Instrument. If Lender determines that any part of the Property is
<br />subject to a lien which may attain priority over this purity Instrument. Lender may give Borrower a notice identifying the
<br />titre. Borrower shall satisfy the lien or take one or more of the actions act forth above within 10 days of the giving of ntstxre "
<br />5. Haaard lamrsece. Borrower shall keep the improvements now existing or hereafter erected on the
<br />Property insured
<br />against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires
<br />i -i trance. This insurance shall be maintained in the amounts and for the periods that Lender requires_ The insurance carrier:
<br />providing the insurance shat) be chosen by Borrower subject to L.todei't approval which shall riot he unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause_ Leader
<br />shall have the right to hold the paiwits peed renewals. it 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 snake 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 restoration or repair is economically feasible and Lender's security is toot lessened_ if the
<br />restoration or repair is not economically feasArk or t.endm's security would be lessened, the insurance proceeds shall be
<br />applied to the sum secured by this Security Instrument, whether or not then dire, with any excess paid to Borrower_ if
<br />Borrower abandons the Property, or does not answer within ?tl days a nobs 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 riot then due ?t) say period will begin when
<br />the notice is gtren,
<br />Unless Lender and Borrower otherwise agree to 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 anti insurance Policies and proceeds resulting
<br />from damage to the Property pnor to the acquisition shall pass to Leader to the eaten, of the sums secured by this Security
<br />Instrument immediately rrwi to the acquisition
<br />46. PferKr S"" and Naiinteaaaee of Property: lxasehoids. Borrower shall nett destroy, dlemage or substantially Orange,
<br />the Property, allow the Property to deteriorate or commit waste. If this Security tnstrument is on a leasehold, Borrower .hall
<br />comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the kAwbotd and fee title shalt not
<br />use 'u:4lcs Iender afire to Fie n rger its writtag.
<br />7. Protection of t.eader's fthb is the Property: Morsgage laaaraace. If Borrower fails to perform the ,ovenarts and
<br />agreements contained in this Security lattrumenr, or there is a legal proceeding that may stgnif'"fuly affect Lender's rights ui
<br />the Property (such as a proceeding in bankruPicy, probate. for condemnation or to enforce Laws or regulations), then Lender
<br />may do and pay for whatever is necessary to protect the value of the Property and Lender's rights to the Property. Leader's
<br />ectrtms may Include paying any sums secure[ M a lien which has priority over this Security Instrument, oppeitit)g in c,outt,
<br />pay)ria reasonable attortsty's fees and entering on the Property to make repairs. Although Lender may take action under this
<br />Parapaph ' l ender doses nor have to do to Any amounts dubutwel by tender ureter rho, paragraph ' shale t r om f
<br />additional Jehl 'If Boat' vet sex-ured by this Sivcuray Instrument Unlest Borrower and tender agree to .ether trrm� IT
<br />Pnmrnt, these amuxonts shall bear mtcreti from the +late of disbursement at the Rrne rate and shall be payable, wrim
<br />upszn nutxe irom l ennui 10 8lkrtt +w-er sequcsting pavnoent
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