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85-004158
<br />UNIFORM COVFNANIS. 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 ofand 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. SubjCct Io applicable lace 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 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 oil the
<br />basisofcurrent 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 }lands 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 Fund.. Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay lit rrower 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 exeess shall be.
<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 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 13orro %%Cr
<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 nsacrtedit 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• tt, 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, tines and impositions attributable to the
<br />Property which may attain priority over this Security instrument, and leasehold payments or ground rents. it' 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 u, 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 au
<br />agreement satisfactory to Lender subordinating the lien to this Security instrument. If Lender determinow that any part of
<br />the Property is subject to alien which may attain priority over this Security instrument. Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy file lien or take one or more of the actions set forth above within 10 days
<br />of the 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 lire. hazards included within the term "extended coverage" and ail% other hautrds for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods than Lender requires. the
<br />insurance carrier providing the insurance shall he chosen by Borrower subject to Lender's approval which shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage Clause.
<br />Lender shall have the right to hold the policies and renewals. if Lender requires, Horrowcr shall promptly give to Lender
<br />all receipts of paid premiums anti renewal notices. In the event of loss, Borrower shall gi%c prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not trade 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 be 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. II'
<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 io repair or restore
<br />the Property or to pay vents 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 Burrower 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 hinge the aunount of the payments. !t'
<br />under paragraph 19 the Property is acquired by Lcnder. 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 i his Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and :Maintenance. of Property; Leaseholds. Borrower shall not dcsitoy, damage orsubstannalh
<br />change the Property, allow the !property to deteriorate or commit waste. if this Secunty Insfr a icnt is on a Irasehold.
<br />Borrower shall comply with the provisions of the lease. anti il' 13<mower aucquires fee title to the Property. the leawliold and
<br />fee title shall not merge unless Lender agrees to the merger ht writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage insurance. If Horrowcr fails to perform the
<br />covenants and agreements contained in this tiecuruy Instrument, or there is a legal procecdi tit, that may siguihcanrh affect
<br />Lendet's rights in the Property (such as a proceeding tit hankruplcy, probate, fot condennlaunn or to en1'orcc laws ,a
<br />regulations), then Lender may do and pay for whafcvcr is necessairy to protect the value of the Property and Lender', nghts
<br />to the Property. Lender's actions may include paying any sums soured by a hcn which has pnonty over thus security
<br />L Instrument, appearing in court, paying reasonable ntorneys' Ices ,suit entering the Property to slake it-pair, Altlnouitl.
<br />Lender may take action under thus paragraph 7. L ender does not hate to do %o
<br />Any arnountsdishurscd by I Cridet under 1111, paragraph ? shall IVWine additional dehi , +t Horrowcr ,e, mcd he ihis
<br />Security Instrurncnl Vnittss Ikltrower and Lcnder agree i + „rther lean, of pay nient. thc,t• anx,unt „hall hear mlcro•st :t,+1n.
<br />the date of dlshunernent at tht• Note rats• and ,11,111 ix' t +.1ya),Ic. with MI,ie,r. 11111,111 n
<br />requesong payment
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