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<br />85- 001580
<br />UNIFORMCOVENIyNTS Borrower and Lender covenant and agree as follows:
<br />L Payment of P.- incipal and Interest; Prepayment and Late Charges. 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 w•ritter: :.%cr by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is pairs ir, 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 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 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 navment% 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 sold or acquired by Lender, Lender shall apply, no lair
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time ter
<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 of
<br />Paragraphs 1 and 2 shall be applied: first, to amounts payable under paragraph 2; second, to interest
<br />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 2, or of 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 directh'. 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 tit writing to the payment of the obligation secured by the lien 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 forfenure 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 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 />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 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 io 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 />re 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 It 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 io pay sums secured by this Security Instrument. whether or not then due. The 30 -day period will begin
<br />when the notice is given.
<br />Unless '-ender 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 I q the Property is acquired by Lender. 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
<br />Instrument immediately prior to the acquisition. extent of the Burns secured by this Secuntc
<br />6, Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or %obsiantiuliv
<br />change Nee Property, allow• file Property u, deteriorate or commit waste. if this Security Instrument is till a leasehold,
<br />Borrower shal! cofiiply %till file provi%ions oaf the lease, and if Borrower acgmres fi)c• title to the Property, the leasehold and
<br />fee til le 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 flails to Perform tile
<br />covenants and a it tale t%rontamed na this Security Instrument, or there as a Icgal proceeding that may signifi anth frect
<br />Leender's right-, u, the Fogerty (such as a proceeding m bankruptcy. probate, h,r eondennwhun en to enforce laws or
<br />:if the Property their Lender may do and pay fur whatever is necessary to protect the value of the Pn,perty amt I. ender'. nghh
<br />:n the Property l.endrr's actinic pray include paying ,day %urns serureJ by a hen which h:as pru,r'r. over this S
<br />Instrument, appearing ua mutt, ll aying reasonable attornevs• fee% and enternag on the Properfy to make repiair ", :111 hough
<br />uuiuy
<br />1 -ender rta:av take arimil under tim paraagraph ', Lender dais not have it) do %,,
<br />Any tfuuaunl I plc% 11 ff Lender upend tins puma naph 7 >hall heroine addtnou:J deM of Nar low er secured h, thi%
<br />Seeunry Irrsfrunuot 1'nles% Bon „wei' and 1 enter' aayrre ro other u•rnn.,f I,,i,nn•nt. ihesr anuunit% %hall hoar inicn•st liven
<br />the ,late of c11sbtli ernrnt :n tl,e \'rte r;oe uttl shall he payable. „nh a em %i. ii „m n„urr rinm IrnJai t„ Hwrower
<br />requestrnK I,avment
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