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86--411074719 = �n86--411074719 UNIFORM COVENANTS. Borrower and lender covenant and agree as follows ss —
<br />L Payment of Principal and Interest; Prepayment and Late Charges. 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. Fonds for Taxes and Insurance. Subject to applicable law or to a written waiver by lender, Borrower shall pay w
<br />Leader 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 leasehold
<br />paymentsor ground rents on the Property, if arty; (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 urrent data and
<br />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 Leader if Leader is such an institution). lender shall apply the Funds to pay the escrow items. lender
<br />ti-say 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 lender 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 />Leader shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without
<br />charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the
<br />Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument.
<br />If the arnount of the Funds held by lender, together with the future monthly payments of Funds payable prior to the
<br />dire 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 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 any
<br />Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than
<br />immediately prior to the sale of the Property or its acquisition by lender, any Funds held by tender at the time tit application
<br />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 I and 2 shall be applied first, to late charges due kinder 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. 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, of any. Borrower
<br />shall pay these obligations in the manner provided in paragraph -',or of not paid in that manner, Borrower shall pay them on
<br />time directly to the person owed payment Burrower shall promptly- furnish it) lender ail not of amounts to be paid under
<br />this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender receipts evidencing
<br />the payments.
<br />Borrower shall promptly discharge any lien which has priority over this 5reurnr Instrument unless Borrower: faI
<br />agrees in writing to the payment of the obligation secured by the hen In a manner acceptable m lender, bI 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 is r secures from the holder of the lien an
<br />agreement satisfactory it) Lender subordinating the hen to this Secwity Instrument If Lender determines that any part of the
<br />Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice
<br />identifying the lien. Borrower shall satisfy the lien or rake one or more of the actions set forth above within 10 days of the
<br />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 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 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 Lender
<br />shall have the right to hold the policies and renewals If Lender requires. 8orn,wrr shall promptly gate to Lender Al receipts
<br />of paid premiums and renewal notices In the event (if loss, Borrower shall gne prompt notice n, the Insurance carrier and
<br />Lender lender may make proof of loss If not made promptly by Borrower
<br />Unless Lender and Borrower otherwise agree in writtng, insurance pn,tcrds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and lender s setunty is not lessened If the
<br />restoration or repair is not economically feasible or (.ender s seturtov 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 uo Borrower It
<br />Borrower abandons the Property, or does not answer within A0 days a nonce fr,un Lender that the insurance carrier has
<br />offered to settle acl aim, then Lt n.fer mat collect the msuramc pnxeeds Linder may use the proceeds to iepauror restore the
<br />Property or to pay sums secured by this Secvrnv Instrument, whether or not then due The ;0 -dav period will be -,in when the
<br />notice is given
<br />Unless Lender and Burrower otherw ise agree In writing. ant uppllcation >t proceeds r„ sr:ncipal shall not extend or
<br />postpone the due date of the monthly payments referred ro In paragraphs 1 and 'or liange the aniuunr of the payments it
<br />under paragraph 19 the Property is acquired by Lender. Burrower s right to any Insuranec polishes and proceeds resulting
<br />trom damage to the Property prior to the acquisition shall pass uo Lender to the rxte-nt of the urns snored by this Security
<br />instrument immediately prior ru the acquisition
<br />6. Preservation and Maintenance of Property; leaseholds. Bommer shell not drstn,y- damage .,r substantially
<br />change the Property, allow the Property to deteriorate or commit waste If rh.s tieturm instrumenr is on a leasehold.
<br />Borrower shall comply with the provisions of the tease, and If B,rn \wet acgtures fir tale n, the Property, the leasehold and
<br />fee tide shall not merge unless Lender agrees to the merger In writing
<br />7. Protection of Undei s Rights in the Property; Mortgage Insurance. If fiorrr,wer tails to perform the tutrnants
<br />and agreements contained in this Sectnty Instrument, or there is a legal pr.xeti•ding that Ina\ srgntfxandy affect Lender s
<br />rights in thet Property ( such as a proceeding m bankruptcy, probate, fur cortcicmnat ton or ro enh irce law stir regulanom . then
<br />Lender may do acul pay too whatever is necessary to protect the s alur of the Property and Lender s rights rn rile Propert•.
<br />lender's actions may includepaytng any sums sew cored tsy a hen wftrch has prnnit) titer this Security Instrument, appearing :n
<br />court, paying reastmable attorneys fees and entering on the Properts t„ make repairs Although Lender n:at take action
<br />under this paragraph ', lender dons riot have to do sit
<br />Any ji-nounts disbursed by Lender under this paragraph shall tx;umr addlrn +nal de'ht ..t Hnrr.,wr: sruuof he ihn
<br />St' €u"fy Initrurnent I. %mess Horrower and (.ender a+itree L,+. +f llCi ler ?i— of lea \,nt'!li ihr— all t..11 nt\ \haul i,v': avcrt''t fr-a;ti
<br />the dare tit dnLwrsementatt tic NA For rarcands hallbe pas aMr, w. tit nurr, i�..,l— ,- ..!mf.,�mIt!),iern+li. T— o. !rt-q,ts:m;;
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