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86-- 105773
<br />UNIFORM COVENANTS Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pav when due
<br />the principal of and interest on the debt
<br />evidenced by the Note and any prepayment and late charges due under t he . ote
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower
<br />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
<br />assessments which may attain priority over this Security Instrument: (b) )early
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums: (d)
<br />and )early
<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
<br />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 it Lender is such institution).
<br />an 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 items,
<br />Lender
<br />escrow, unless
<br />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 he
<br />shall 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
<br />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
<br />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
<br />the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower
<br />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
<br />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 Security
<br />this 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
<br />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,
<br />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
<br />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
<br />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
<br />makes these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any hen 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;
<br />(b) contests in goal
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's
<br />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 Secunty Instrument. If Lender determines
<br />that an) 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
<br />satisfy the hen or take one or more of the actions set forth above within 10 days
<br />of the 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 hazards for
<br />which Lender
<br />requires insurance This insurance shall be maintained in the amounts an 1 for the periods that Lender requires The
<br />insurance carrier providing the insurance shall be chosen by Borrower
<br />%
<br />subject to Lender's approval which shall not h
<br />unreasonably withheld. e
<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
<br />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
<br />t
<br />give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss ,f 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
<br />economically feasible and Lender's security is not lessened. if the
<br />restoration or repair is not economically feasible or Lender's secunty would be lessened, the
<br />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
<br />not answer within 30 days a notice from Lender that the insurance earner has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may
<br />use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whet
<br />when the notice is given. period or not then due The 30 day pe d will begin
<br />Unless Lender and Borrower otherwise agree in writing, an) application of proceeds to principal shall not eyrend nr
<br />postpone the due date of the monthly payments referred
<br />to in paragraphs I and 2 or change the amouni of the pay meats if
<br />under paragraph 19 the Property is acquired by Lender, Borrower's nght to any insurance
<br />fx7ucies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the
<br />sums secured M this Se. urii s
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds, Borrower shall not destroy• damage or suhstanuail%
<br />change the Property• allow the Property to deteriorate
<br />or commit waste if this Security instrument is on a Icasehrld.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property,
<br />the Icasc hold 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 io pert„rn, stic
<br />covenants and agreements contained in this Security Instrument, or there is a legal
<br />proceeding that may sigmficanth .itTC.;
<br />Iendeis nghts in the Property (such as a proceeding in bankruptcy probate. for condemnation or to enforce laws nr
<br />regulations), then Lender may do and pay for whatever is necessary to the i Property
<br />protect alue of the and I ender , riehi,
<br />in the Property Lender's actions may include paying any sums secured by a hen which has pnoruy oscr i)ns se urti
<br />Instrument, appeating m court, paying reasonable attorneys' fees
<br />and entering on the Properts
<br />Lender may take action under this paragraph 7. Lender does not have io du yo
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt m Ftr,r -,,vr .c, tire,, !•, ,,
<br />Secunty Instrument 1'nlrss Borrower and I
<br />ender agree to ether terms o(paymcnt. thcsC arn:aini ,hail hear n , .,.,. ,.
<br />the (laic of dishurserncnt at the Note rate and shall be payable, wilh mterest
<br />upr,r, ,,,,;,;c tnvn I en.l, r F +.
<br />requesting payment
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