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<br />} 85-- 002750
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follow,:
<br />11. Payment of Principal and interest; Prepayment and Late Charges. Borrower hall rom lly paN hen due
<br />the principal of and interest on the debt evidenced by the Note and an prepayment and late charge due a under the Note,
<br />2. Funds for Taxes and insurance. Subject to applicable law t 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 priority over this Security Instrument. (b) yearly
<br />! leasehold payments or ground rents on the Property, if an c y
<br />1 mortgage insurance premiums, if any. These items are called escrow items." Lendinsurance ima e the Fund due on the
<br />basis ofcurrent data and reasonable estimates of future escrow items. yearly
<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 unl e •
<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 tie amount of the Funds held by Lender, together with the future month)
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow Items when en due of-Funds payable hall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due. Borrowr 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 I and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
<br />Noe; 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, if any.
<br />Borrower shall 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 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 (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 i3urrower a
<br />notice identifying the lien. Borrower shall satisfy the Gen or take one or more of the actions set forth rth above within l0 day s
<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 tern] "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the per
<br />i<xls that [.ender requires. The
<br />insurance carrier providing the insurance shall he chosen by Borrower subject to I_rnder's approval which shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and hall 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 lass, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if 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 economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would he lessened, the 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 doer 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 tile" due. The 30 -day period will begin
<br />when the notice is given.
<br />Unless 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 I 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 policies 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 Securite
<br />Instrument immediately prior to the acquisition,
<br />6. Preservation and Maintenance elf Property; Leaseholds. Borrower shall not destroy. +i:trn:.]ge or suhst,tntiaNa
<br />Change the Property, allow the Property to deteriorate or commit waste. tf this Se°ctlrlty lllstrul]llPlt t, on a !c'aschoicf,
<br />Borrower shahl comply with the provisions of the lease. and if Borrower acquires lec title to the 1'rail�erfy. tl]e lcaseholol ant.
<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. It' Borrower fails it) 11c°rform the•
<br />covenants and agreements contained tit this Security Instrument, or there. is a legal pr,pcevifrng that sae signcficautly ;tffrct
<br />Lender's rights in the Property (such its a pro acecding in hankruptcy. probate, for conelrrtutae :on or t„ et :fi,ric
<br />regulations), then [..ender may r o and pay for wht]ever is necessary to protect the � aluc of file Prat , < 1 ]w s r c
<br />in the Pro rt [,ender'% Actions met inclne,e 76ayin , l ufy an+1 I rnelcr's 11 ill
<br />y y ,
<br />Instrunwrit. appeal. 1 t an® ,urns secured by a G:�n wlotc'h hats prrorit� ,�ecr this Srcuraty
<br />pp+raring in court, paying rea�a] "able attecrne °y.,' frta anti entering on flit, l"ropvrty try make rrhans �11thn,u !h
<br />1_crider may take action under this paragraph 7. L,nder doies not have to cl,.l so
<br />Any tarraiu"fsdtsh, by l..vllder unelef this paragraph . "fall hV*,:ome icdchil,inal dvht of Horlo%%(..'I dt°c:crc�f the thcs
<br />Security tnstru "et]t. r` "revs Harrower and Leander agree. toorhe�r (erill % of, pmIllent, I11" C sne,•coics �h,tl1 t•;�,i, u�rcrret tr4>rrt
<br />the dafte fit avinb i n{t ° "f it ]fie NlYfe 1 "aft' i #tlel hf]oall t� ft}l�<tble.'. "ill, title resi, 9tipon ti ,r it t' f4 PY! 1 ,'till,'! C Iirttf,�N,'r
<br />ruestnr]g parrr]er]t
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