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85-004783
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I. 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. 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 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 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 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 makeup 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 1 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 />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 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 Ixnder. (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the tender'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 Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />S, hazard Insurance. Borrower shall keep the improver ents flow existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the peritxls that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to !.ender'% 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 I.endcr require%, Bonovicr shall promptly give to Lender
<br />all receipts off paid premiums and renewal notices. In the client of loss. Borrower shall give prompt notice to the insurance
<br />carrier Arid Lender Lender may make prtxrf of Io%% if nut made promptly by Burrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance prrx-ceds %hall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and bender's security a not le% %erred. If the
<br />re%lorallon or repair is not economically feasible or L.ender'% security would he lessened, the insurance proceeds shall be
<br />applied to the sums sc^cured by this Set urity Instrument, whether or not then duc. %rill any excess paid to Borrower. If
<br />Borrower abandons the Property, or dotes not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle if churn. 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 />Unle%% Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />perstpome the due date of the nuinthiy paynicnl% referred to in paragraphs I and 2 or (hange the amount of the paymcut%. 11
<br />under paragraph 114 the Property is acquired by Ixnder, Borrower's right to any insurance poliwies and proceed% resulting
<br />from damage fee the Property prior to the acquisition shall pass to Lender to the extent of the sum% secured by tilts Security
<br />instrument immediately prior io dle acquisition.
<br />6. Preservation aad Maintenance of Property; Leascholds. Borrower %hall not destroy. damage or suhstantialh
<br />change the Property, allow the Property to deteriorate or commit %%astc. If this Seeurnv ]listrurncnt is on a leasehold.
<br />Borrower shall comply with file provisions ollhe lease, and if forrower acquires fee title to the Property, tile leasehold and
<br />fee title shall not merge unless Ixnder agree% 14) rife merger in writing
<br />7. Protection of leader's Rights in the Property; 'ltortttaage Insurance. It Borrower tads to lcrl'orm the
<br />covenants and agreements contained of this Security Instrument, or there is i legal pncecdnlg that may %igull anth atlect
<br />Lencict'% right% of the Property (such as a proceeding in hankruptcy, probate. h,r o,ndenutauon or to ent,1lrt• laws ,11
<br />regulations), then l crtcler may do and pay for whatever w necessary to protect lift• t slue of the I'roperlt anti I ender', rights
<br />to the Property ].ender'% actions may include paying :fly sours '11!1: if red by .1 lien tthi.h ha, prom% „ter tilts "e(unit
<br />Instrument. appearing tit tour!, preying reastmvble attorneys' tech a! J entering .at the Vtoperry t,, make rrlo,nis \!though
<br />.. Lender may take action under ihi%por rgraph ", Lender doe's not hale to do so
<br />lm amonnt%ch%hur%rd ifs I mdse under fill% paragraph ' shall lxc,nnr Iddttalna; Jet,! of liorf otter st'rtnrd I's this
<br />sc,urny Imirumenr I. niess Gorr wer and I ¢rndet ugrev tnothel 1CMI%„f patnu•nt. then,. er.,,vnr)s,h,ot t e.o utttrr,t fr,no
<br />the (late <4 al %hur Act, tell r ar life time rate and %hall For payable•• %W; .nlri <,t, ;; „n m,•urr !...;n I . n,irr t, fLarnnt,,
<br />fequesiing pay9nt'1il
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