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86- 107370
<br />UNIFORMCOVE`vANTS. Borrower and Lender covenant and agrecasfollou%
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall prompt 1% 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 walker by Lender. Borrower (hall pit
<br />to Lender tin the day monthly payments are due under the Note, until the Note is paid in full, a sum ( "Funds ") equal Vs
<br />one- twelfth of: (a) yearly taxes and assessments which may attain priority o, er this Securit% Instrumem: ih) yearly
<br />leasehold payments or ground rents on the Property', if airy: (c) yearly hazard insurance premiums: and (d) cearh
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the funds due oil the
<br />basis of current data and rea onableestimatesoffutureescrowitems.
<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 itents.
<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 lice 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 ccurity. 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, itie 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 diw. Borrower shall pay to Lender ant
<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 prompth 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 Fund,, 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 otheru rte. all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note: second, io 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, tines 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 '_. 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 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 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 Secunty 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 />5. Harmed Insurance. Borrower shall keep the improvements now existing or hereafter erected oil the Properly
<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 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 los%, Borrower shall give prompt notice to the insurance
<br />carver 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 he applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economicalh feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender': security would he 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 theo due. The 30 -day period will begin
<br />when the notice is given.
<br />L'nlesi 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 1 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 poheics 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 Maintenaeee 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 %hail 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 to perform The
<br />covenants and agreements contained in this Security Instrument, or there its a legal proceeding that may significanih affect
<br />Lender's rights in the Property (such as a prock ding in bankruptcy, probate, for condemnation or m enforce laws nr
<br />regulations), then Lendei may de and pay for whatever t% necessary to proteci the value of the Property and Lender'( rights
<br />in the Property Lender's actions may include paying any sums secured by a lien which has pnortty over iht. Security
<br />Instrument, appearing in court. paying reasonable attorneys' fees and entering on the Property to make repair Although
<br />C Lender may take action under this paragraph', l..ender Lice% not have to do %o
<br />i•� Any amounts disbursed by Lender under this paragraph' chali become addmonal Licht (if liorr•wrT %e, tint! h� ;ins
<br />Security Instrument Uiidess Borrower and 1 ender agree to other tcrtr; ,4 pa%tncnt. these amount %hail bear ;nicr•%t lien,
<br />the (late of di%hurseinent at the N[He rate and .hall he pmahle. with eitvre +t, up +gin nonce tr,ne 1 ender R::rrrwri
<br />requesting payincnt
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