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UNIFORM COVENANTS Borrow~er and Lcnder covenanl and agrec as ~ollowrs:
l. Payme~t of Priacipa! and Inte~cst; Prepay~ment and Iate Cha~ges. Borrow~er shaU promptl}~ pay when due
the pr?ncipal of and interest on the debt evidenced by the I~ote and any prepa} ment and late chargec due under thr tiote.
2. Fuods for Taxes and lnsurance. Subject to applicable law~ or to a w~ritten w ai~ er by Lender, Borrow•er shall pay
to Lender on the day monihly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
one-twelRh of: (a) yearly taxes and assessments which may attain priority over th~s Security lnstrtment; (b) ~•earl}~
teasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
mortgage insurance premiums, if any. These items are called "escrow• items." Lender may estimate the Funds due on the
basis of current data and reasonable estimates of future escrow items.
T'he Funds shall be held in an institution the deposits or accounts of w~hich are insur..J or guaranteed by a federal or
state agency (inciuding l,ender if Lender is such an institution). Lender shall apply the Funds to p~y the escrow items.
Lender may not charge for holding and applying the Funds, analyzing the account or ~~eriiy~ing the escrow~ items, unless
Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrow•er and
~ Lender may~ agrce in writing that interest shali be paid on the Funds. Un!ess an agreement is made or applicable law
requires interest to be paid, Lender shalt not be required to pay Borrow~er any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accountang otthe Fur.ds show~ing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are plydged as additional security for the sums secured by
this Security Instrument.
If the amount of the Funds hcld by Lender, together with the future monthly pa~~ments of Funds payable prior to
the due dates of tbe escrow items, shall exceed the amount requireci to pay the escrow items when due, the excess shall be,
at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
amount of the Funds held by Lender is not sufficient to pay the es~:row items when due, Borrower shall pay to Lender any
amount necessary to make up the deficiency in one or more payments as required by Lender.
Upon pa~~ment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
an~~ Funds heid by Lender. Ii' under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
application as a credit against the sums secured by this Security lnstrument.
3. Apptieation of Pa}~ments. Unless applicable law provides otherwise, al! payments received by Lender under
paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
?`ote; third, to amounts payable under paragraph 2; fourth, to interest due; and last. to principal due.
4. Charges; Liens. BorroK~er sha11 pay all taxes, assessments, charges, fines and impositions auributable to the
Propert}~ which may attain priority over this Security Instrument, and leasehold papments or ground rents, if any.
Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shaU
pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts •
to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
receipts e~~idencing the payments. ~
Borrower shall promptly discharge an}~ lien ~~~hich has priority over this Security Instrument unless Borrower: (a)
agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
faith the lien by, or defends against enforcement of the lien in, legal proceedings w•hich an the Lender's opinion operate to
prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
the Property is subject to a lien which may attain priority over this Securitp [nstrument, Lender ma}~ give Borrower a
notice identifying the lien. Borrower shall satisfy- the lien or take one or more oFthe actions set forth above w•ithin 10 days
of the gi~•ing of notice.
5. Hazard Insurance. Borrower shall keep the impro~~ements now• existing or hereafter erected on the Property
insured against loss by fire, hazards included vrithin the term "extended co~•erage" and an~• other hazards for ~chich Lender
requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
insurance carrier providing the insurance shall be chosen by Bo~row~er subject to Lender's approval w•hich shall not be
I unreasonably withheld.
~ All insurance policies and renewals ~hall be accep~able to Lender and shall include a ~tandard mortgage clause.
' Lender shall have the right to hcld the policies and renew~als. If Lender requires. Borrow~er shai! promptly gi~•e to Lender
` all receipts of paid premiums and renewal notices. In Ihe ever~t of loss, Borrow•er shall give prompt notice to the insurance
~ car~ier and Lender. Lender may make proof of los~ i( not made promptl~~ b}~ Borrower.
~ Unless Lender and Borrower otherw•ise agree in writing, insurance proceeds shail be applied to restoration or repair
of the Property damaged, if the restoration or repair is economicall}~ feasible and Lender's security~ is not lessened. If the
~ restoration or repair is not economicatl~~ feasible or Lender's security w~ould be lessened, the insurance ~roceeds shall be
applied to the sums secured by this Security Instrument, w•hether or not then due, with any excess paid to Borrow•er. If
~orrower abandons the Property, or does not answ~er w•ithin 30 days a notice from Lender that the snsurance carrier has
offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period N-ill begin
when the notice is given.
Unless Lender and Borrower other~vise agree in writing, any appiication of proceeds to principal shall not extend or
postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments_ If
~ under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
~ from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured b~• this Securitp
~ Instrument immediately prior to the acquisition.
6. Preservation and ~laintenance of Property; Leaseholds. Borrow~er shall not destroy, damage or substantially
change the Property, allow the Property to deteriorate or commit a~aste. If this Securit~• Instrument is on a leasehold,
Borrower shaif comply with the provisions oCthe lease, and if Borrower acquires fee title to the Property, the leasehold and
~ fee title shall not merge unless Lender agrees to the merger in w•riting.
~ 7. Protection o! I.ender's Rights in the Property; !~fortgage Insurance. If Borrow~er fails to perform the
~ covenants and agreements contained in this Securit~• Instrument, or there is a legal proceeding that may significantl}' afi'ect
~ Lender's rights in the Property (such as a proceeding in bankruptcy, prebate, (or condemnation or to enforce laws or
r regulations), then Lender may do and pay for whate~~er is necessar~• to protect the value of tne Propert}~ and Lender's rights
~ in the Property. Lender's actions map include pa}~ing any sums secured b}• a lien w~hich has pnorit} o~er this Securit}~
~ Instrument, appearing in court, pa~•ing reasonable attorne}~s' fees and entering on tfie Propert~~ to make repairs. Although
~ Lender may take action under this paragraph 7. Lender dces not have to do so.
An}• amounts disbursed by Lender under this paragraph 7 shall become addit~onal debt ~f B~rmwer secured b}- this
~ Security Instrument. Unless Borrow•er and Lender agree to other terms of pa}ment. the~e amount~ shall bear interest from
the date of disbursement at the Note rate and shall be paSable, With interest, u~n nonce fmm Lender to B~~rrower
requesting payment.
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F . n~^,z4fi1 99~
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