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85-04 002132
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly
<br />the principal of and interest on to debt evidenced by the Note and any prepayment and late chargs due under the Note. due
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower 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 assessments which may attain
<br />leasehold payments or ground rents on the Property, if an c priority over this Security Instrument; (b) yearly
<br />mortgage insurance premiums, if any. These items are called escrow yearly ems." Le der may estimate the Funds due yearly the
<br />basis cif 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
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying these croweit�ems, ut items.
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower d
<br />an
<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 shalt not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />hall 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
<br />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 hall e,
<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 riot 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 later
<br />than immediately prior to the sale of the Property 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 t and 2 shall be applied: first, to late charges due under 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 />d• C'hargoes; 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, if any.
<br />Borrower hall pay these obligations in the manner provided in paragraph 2, 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 lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien hv, or defends against enforcement of the hen in, legal proceedings which in the bender's opinion operate to
<br />Prevent the enforcement of file lien or forfeiture of any part of the Pro rf
<br />agreement satisfactory to Lender subordinating the hen to this Security irlstritatncnt.slf Lender letehrmines that sore lien an
<br />y g
<br />the Property is subject to a hen which may attain priority over this Security Instrument, Lender may give Borrower oa
<br />notice identifying the lien. Borrower %hall %attsfy the lien or take one far more of the actican% set forth shove within 10 days
<br />of ffie giving tarnoitIce
<br />S. Ilazard Insurance. lorrower shall keep the tnapro'vcments now cxisting or hereafter erected on the Property
<br />Insured against loss by tire. laatartls included within the term "rttended uoverage'•and Qanv father hazards for which Lender
<br />requires insurance this insurance shall he maintained in the amounts and for the peri,xl% that ieder requires. The
<br />insurance carrier providing the insurance shall be cho -wri by Borrower scsht t to Letaofcr's approval which shall not he
<br />unreasonably withheld,
<br />All insurance policies and renewals shall he acceptable to Lender anti shall incltide it standart mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If I..endcr requires all receipts of paid premiums and renewal naticcs. In the event of hiss, Ro.arrower Btprrowcr shall promptly give to Lender
<br />shall give prompt notice to the insurance
<br />carrier ad Leader. bender may make proorof loss if °not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance pro cccds shall IV : applled to restoration car repair
<br />of the Property damaged. if the restoration or repair is econortatcally feasible and I.endt r'% security is riot lessened. if the
<br />restoration or repair is not economically feasible or Lender's security wotllai to le-� scncd, the insurance proceeds shall he
<br />applied to the sums secured by this Security Instrument, whither or not then title, with any eae:ess paid to iorrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notic°e from La:nh a that the insurance carrier has
<br />offered to settle a claim, then I.,ender may collect the insurance proceeds. Lender may use the;prciccefi% to repair or restore
<br />the property or to pay sums se,.ured by this Security Instrument. whether nr not then title. i "he 30-day Period will hegin
<br />when the notice is given,
<br />Unless l ,ender and Borrower otherwise agree in writing, any applicatican of proceeds if) principal %hall neat exferlcf nr
<br />tp the due date of the ►ncanthly payments referred tea in paragraphs i and 'or change the amount ol, the payment% If
<br />under paragraph 19 the Property is acquired by Lender. Boarrower's right to any Insurance pfahcles sand i3rocreds resulting
<br />front damage to the Property prior to the acquisition shall pas% by tits% Serlt
<br />I " l ender to the c+tlettt of the %unf% %c�c urrf.f nly
<br />Instrument immediately prior to the acquisition,
<br />6. Presmalion and !Maintenance of Property; Leaseholds. Borrower %"Dull n,,, tie%trov, ffrarn9age,;r %ufp%tantlally
<br />char the all co l' allow the Proaperty It, deteritrrate or conifnil waste. If this sccttrtty lit%Irllttlent a% error a 1ca%ehrald,
<br />Borrower shall ctarnply with the provisions of the lease, and if lif�irrower acquires fee title to the 'roperty. t Ile leasehold and
<br />fee title `hail not merge unit'%% I.ender agrees to the. merger in writing.
<br />7• Pi'Mectfon of 11,ender's Bights in the Pr rt Mort
<br />ca v rite and agreements etantainrd irI this St curity, Instrument. or there i% %sj legal epro� ce�af�npt t h attns i`I %ignitic ntivtTatT�cf t
<br />"c is right% in the Property (such as a prm:mfing in hankrupicy. proha)e, frir rondertlriatloll fir t <l enfRuce laws „r
<br />regulslta.nis), then i..ender may do and pay fair whatever is rpc+ e % %,ary fo protect the %lute +.i the Prfal,c.rty anti i miler'% rights
<br />In than Property lender% actions ratty Include paying any sum% %retired h
<br />I ru nt, ail wring in c`tftlrt, paying ic"inahie atforticy %' fees Find enlertragaafn thcwl'r<�p rah t,�ifaeakt rcpitr %tr %1ltlfi�bgh
<br />Vender may take at: fit sta un:lef fills par agraph '. Lender cif c% nt't leave to Dior %tr
<br />Any anust1111%(11%blar ;d by Lend €r under Off% pare ra da
<br />. �uraty° Instrument 1'n1c s lifarrfawe" anti Vvilifer agree t rrthcr ternis� ��t,�rlea frrft�rrlar %c,aflses�aaru. {�dh�ai� #prsil�gf,tcfe,t� Pst<�as,
<br />fig 9fatr too` tflsbot %errlenl at the Note r:ere arftf 01,111 FW l»ahle, with siife vr4n r sting yrm l its ii�r tr�tia 1 r :,,: r r,, it,?re
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