Newbie - apply-templates

I think this is a pretty basic question

Ive got a document of the following form (transforming to html).  I need
any mention of the state name (e.g. California) to be inserted where the
[statename/] element is.  I dont know how to write the XSLT transformation
for this to work.    I put below my first stab at the XSLT code, but I know
its incomplete. 

I think the part Im having difficulty with relates to the fact that
[statename/] appears  possibly multiple times  within the body text of an
element.  I dont think Ive ever had to code for a situation like this.

Thanks!
David

[doc]
            [body]
                        [para]Summary of Laws for [statename/][/para]
       [para]The laws in [statename/] are favorable to defendants.  If you
live in [statename/] then your outcome is secure.[/para]
            [/body]
[/doc]

And XSLT of the form:

[xsl:template match=/doc]
            [html]
                        [xsl:apply-templates/]
            [/html]
[/xsl:template]

[xsl:template match=body]
            [body]
                        [xsl:apply-templates/]
            [/body]
[/xsl:template]

[xsl:template match=para]
            [p][xsl:apply-templates/][/p]
[/xsl:template]

[xsl:template match=statename]
            [xsl:value-of select=$statename/]
[/xsl:template]