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<br />Uf";;F0RM COVENA~";1S. Borrower and Lender covenant and agree as foHows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on Ihe debl evidenced by the Note and any prepaymenl and late charges due under the Note,
<br />2. Funds for Taxes l!!ld lnsu!'!!nee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on Ihe 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 altain priority over this Securily Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiumS;l\nd (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 curr~nt data g..~d t'e--...sonable estimates of future escrow items4
<br />The Funds shall be held in an institution the deposits or accounts of which are insure4 or guaranteed b)'l! fe4er!!lor -
<br />state agency (including Lender if Lender is such an institution), Lender shall apply the Funds to pay the escrowitl:ms.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifyingtheescrpwjteDls:'~
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge,Borro~'aful
<br />L-"'11der may agree in writing that interest shall be paid on the Funds. Unles..ci an agreement is made-'or appliCable:'~aw-
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds; Len~
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Fundsandtbe
<br />purpose for which .each debit to the Funds was made. The Funds are pkdg~d ~ additional security fOI the SUulS secured -by:
<br />this Security Instrument.
<br />If Ihe amount of the Funds held by Lender, logether 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 />ai Borrower', option, either promptly repaid to Borrower or credited to Borrower on montbly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficienl 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 paymenl in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds hdd by Lender, Jfunder paragraph 19the Property j~ s"". v acquired by under, Lendershallapply;nolater
<br />than immediately prior 10 the sale of the Property or irs 8COU:, 'to, ,', by Le:cder, any innds hdd by Lender at the time-of ,
<br />application as a credit againsl the !<linlS secur~ b} :)jis Sect.r', . "Slmmen!.
<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, 10 lale charges due under the Note; second, to prepayment charges due under the
<br />Note; Ihird, 10 amounts payable under paragraph 2; founh, to interest due; and last, to principal due,
<br />4, Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable 10 the
<br />Property which may attam priority over this Security Instrument, and leasehold payments or ground. rents,ifany.
<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 ume directly 10 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 furnisbtoLeIl~
<br />receipts evidencmg the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in wrtllng to the payment of the obligallon secured by the lien m a manner acceptable to Lender; (b) contests in good
<br />failh the lien by. or defends agaJnsl enforcement of the lien to, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the hen or forfeIture of any pan of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Inslrument. 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 'Illlsfy the lien or take one or more of the actions set forth above within 10 days
<br />of the gIving of notice,
<br />5. Huard Insurance, Borrower shall keep the Improvements now exisling or hereafter erected on the Property
<br />insured against loss by tire, hazards included withmthe term "extended coverage" and any other hazards for which Lender
<br />requ,,~ insurance. This insurance shall be main tamed III the amounts and for Ihe periods that Lender requires. The
<br />insurance carner proVldmg the Insurance shall be chosen by Borro....er subject to Lender's approval which shall not be
<br />unreasonably withheld,
<br />All i""urance pohcles and renewals shall be acceptable 10 Lender and shall include a slandard mortgage clause,
<br />L<'nder shall have the nght to hold th~ poliCIes and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paId premiums and renewal nOllces. In the event of loss, Borrower shall give prompt notice w the insurance
<br />carner and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwISe agree in wrttlng, Insurance proceeds shall be applied 10 restoration or repair
<br />of the Property damaged, if the r."lOratlon or repair IS economicaHy feasible and Lender's security is no! lessened. If Ihe
<br />restoration or repaIr IS nOl economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums """ured by this Seeurlty Jnstrument. whether or not then due, with any excess paid to Borrower, If
<br />Borrower abandons the Propene" or does not answer wuhm 30 days a notice from Lender Ihat the insurance carrier has
<br />offered to sellle a claim, thell Lender lI'.ay' .::oHectthe insurance proceeds. Lender may use the proceeds 10 repair or restore
<br />the Pro!Jeny or to pa, sums secured by thIS SeeUrtty Instrument, whether or not then due, The 30-day period will begin
<br />w hen 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 paymenls referred to III paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property IS acquired by Lencrr, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquislllon shall pass to Lender to the e,~tenl of the sums secured by this Security
<br />In~trumcn{ immediately prlor to the acqUisition.
<br />6, Presenatioll and Maintenallce of Property; Leaseholds, Borrower shall nol desrroy, damage or subslantjally
<br />change the Property, allo..' the Property to deteriorate or commil waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provislOn' ,,1' the lease, and if Borrower acquires fee ttlle to the Property, the leasehold and
<br />fee lltle shall n,,1 merge unless Lender agrees to the merger in WritlOg.
<br />i. Protection of Lender's Rights in the Propert)'l Mortgage Insurance, If Borrower falls to perform the
<br />co-Yenal\~$ and agreements- contatned in thiS SecuntylnSlfumenL tIt then: b a kgai pro-~'eromg th,~H}n~y :~lg~lt1cantly atTect
<br />Lender's nghls In the Property (sueh as a proceedmg m bankruptcy, probale, for ('ondemnall<fl+~ ~~ qnflirl:f law, or
<br />r"guJallonsj,lnell lender may do and pay for whatever is nt:<:essary to prtHel'Ilne value oflhe l'rop;,'ny and l.ender's nghts
<br />tn the- Prr-~-n,. Lend-ct'; actions may indude paying ail~- Sj,jj'tlS s-ccurw by a lien WhiCh h.1~ prioflry over ihi-s Security
<br />In.sllument, appeanng 1Il wun, P"flllg reawnable attorneys' fee; and emering on the Property to make repalrs Although
<br />Lend~r may tale IlcthJfl under thJ~ parag.raph i. Lender d(.)e~ not have to do S()
<br />}-\Jl~ 3'fI'KH.mh dis.hu~d by Lender under ttns paragraph '7 -:.haH bet.'omc aJdlOt~nal debt of B()fi'O\\cCl \{'",..'l.uet.:l bj thIS
<br />Secunt} lnstrun\cn1 t nl-es:s &~rrj,)we:r and Lender agree to t'rtoer term!< of pi,iymefH. lhe~t; rtfHOUt1{\ "haH hear HHt.'r~l from
<br />l~ d.-i!t4: -nf d~~btU'~tncn~ a~ tbe ~t)te f~Ht.~ and ,:\,fhlH he pa~abje. wah IHte-rt'St, upnn 1l<..11kt" {rnm l.t':nder 1\'> Bprnw.'ef
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<br />84-006144
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<br />'tXlllCl'tllll\ payment
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