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85-003868
<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 pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due ut:der OW Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a wnttcn waiver hr Lender. Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the time is paid in full, a sum ( "Funds ") equal is
<br />one - twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument: (h) cearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums: and (d) \Carly
<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 amoun: 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 month!} 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 and
<br />amount necessary to make up the deficiency in one or more payments as required by Lender.
<br />Upon payment in fultof all sums secured by this Security Instrument. Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 11) tile 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. it ;,repayment 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 rile
<br />Property which may attain priority over this Security Instrument. and leasehold paymenis or ground rents. if art's.
<br />Borrower shall pay these obligations in the manner provided in paragraph ?, nr if not paid in that manner. Born +wee Shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to he 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 m good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate io
<br />prevent the enforcement of the lien or forfeiture of any part of the Property: or (c) secures from the holder of the ]ten 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 Bormuer a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth abo%e within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on tree Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which !.ender
<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 approya l which shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall he acceptable to Lender and shall include a standard mortgage .lausc.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires. Borrower shall promptly -I%e to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt nonce to the insurance
<br />carrier and Lender. Lender may make proofof 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 />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 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 then due. The 30-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any upplication 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 N 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 Security
<br />Instrument immediately prior to the acquisition.
<br />6. Prenervatiov and Maintenance of Property; Leaseholds. Borrower shall not destroy damage err subsianriaih
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security lnsirunwill is ou a leasehold.
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquires fee title to the Property, lilt- 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. 1' Borrower fails to perforrrl tilt'
<br />covenants and agreements contained in this Security Instrument, or there IS a legal proceedituc that may significantly aflvct
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, proba(e. I'm condemnation or to enforce ittw, err
<br />regulations), then Lender may do and pay for whatever is ncces:uary to prtnect the value of the Property' and 1..endcr'S rwhis
<br />in the Property. Lender's actions may include paying any sums secured by it hen which has prmrity oycr this'W,11111%
<br />Instrument, appearing in court, paying reasonable attorneys' fees and cnteruig on the property 1(, make icparrs..Ahhough
<br />Lender may take action under this paragraph 7. Lender does not 1111%e l o do so.
<br />Any amountsdishumed by Lender under this paragraph 7 shall become addutioiuil debt of lioriowei secured by t)ui,
<br />Security Instrument. Unless Borrower and lender agree to other terms of payment, these amounts shall beat interesi li'wl
<br />the date o} disbumerient at the %ore rate :ittd shall he puyahle, with iatarrst, upon nonce (n,;n i rildci n
<br />requesting payment.
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