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85-. 004648
<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 :% hen 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 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 ("Fonds ") equal to
<br />one - twelfth of. (a) yearly taxes and assessments which may attain priority over this Security Instrumene (h) 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 item' s.- Lender may estimate the Funds due on the
<br />basis ofeurrent data and reasonable estimates of future escrow, items.
<br />The Funds shall be held in an institution the depcxits 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 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 tine (.r more payments as required by Lender.
<br />Upon payment in frill of all sums secured by this Security instrument, i.ender 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 recei%ed by Lender under
<br />paragraphs I and 2 %ball be applied: first, to late charges due under the Note: second, ro prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />{. Cb=IVM 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 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 Ihi% Security instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien rat a manner acceptable to Lender: (h) 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 gi%c Borrower a
<br />notice identifying the lien Borrower shall satisfy the lien or take one or more of the actions set firth abIwe within 10 days
<br />of the giving of notice.
<br />5. Naaard insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against (ossby fire, hazard% included within the term "extended co%erage" 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 %hall he chosen by Herrowcr subject to Lender's appro%al which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall he acceptable to Lender and shall include a %tandard 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, Burrower shall gi%e 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 tit writing, m %urance precede shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and I.cndcr's security is not lcs%ened. if the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument. whether or not then (Inc. with any excess paid to Borrower. If
<br />Borrower abandons the Property. or does not answer within 30 days a notice from (.ender 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. 'file 30 -day period will begin
<br />when the notict is given.
<br />Unless Lender and Borrower otherwise agree in wrifing, any application of proceeds too principal shall not extend or
<br />postponethe due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payment%. If
<br />under paragraph 14 the Property is acquired by Lender. Borrower'% right a, ariv insurance Iolicies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to thr extent of t he sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Ptreeervatioa and Maintemme of Property; I raseholds. li aruwrr shall not destroy, damage or suhst:nutally
<br />change the Property. allow the Property to deteriorate or commit waste It this Serums Instrument 1% on it leaw•hold.
<br />Borr(wucr shall comply with the provisions ol'tlie lease, and if Borrower acquir%•s fec title n. the Property. the leasehold and
<br />fee title shall not merge unies% Lender agree% to the merger to wnnng.
<br />1. Protection of Leader's RWM in the Property: MortRW Insurance. it Borrower f il% to perform the
<br />covenant %andagreomeni %.c(mtaine(I in thvOwcurity Instrument, or there I% it legal proceeding that mac significantly affect
<br />Lender's rights in the Property (%uch as a proceeding in hankruptcy, probate. kn condemnation or to enforce laws or
<br />rel(ulatHrris), then Lender may do atxi pay for whatever is necessary to pro(ect the %aluc of the Pro1wrty and Lender's right%
<br />in the Property. Lender's actiom nary include paying any sums xcured by a lien which has pnorny over this Security
<br />lnstrumetrt, appearing in rxnart. paying reasonable attorneys' fees and entering on the Property to make repair. Allhough
<br />L Lender may take actiom under this paragraph'. Lender does not ha%c 1„ do
<br />Any am(nnt%di%bursad by Lender under this paragraph'' %hall hecomr addntonul deht 1,11 H,ornowrr scouted 11% Ibis
<br />Saurity Instrument 1.'nl(^+s Borrower and I.cndcr agree hr other tcrrn%,ol paynnrr,t, Ihrsr uunnnnls sled( hear uurrest fn +m
<br />the date A disMtt%cnnent sl the Note rate and shall he pa%:rhl"• with m!"rrst ur<,!r molt" li,+nt 1 older In H, censer
<br />requesting payment
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