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<br /> THIS SECURITY INSTRUMENT co�bine�uniforni covenants for national use and non-uniform covenants with
<br /> limited variations by jurisdiction to constitute a uniform security instrument covering real property.
<br /> iJNIFORM COVENANTS.Bortower and Lender covenant and agree as follows:
<br /> 1. Payment of Principal and Interest;Prepayment and Late Charges.Borrower shall promptly pay when due the
<br /> 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.If requested by Lender in writing and subject to applicable law,Borrower shall
<br /> pay to Lender on the day monthly payments ate due under the Note,until the Note is paid in full,a sum ("Funds") for: (a)
<br /> yearly taxes and assessments which may attain priority over this Securiry Instntment as a lien on the Property; (b) yearly
<br /> leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insuxat�e premiwns; (d) yearly
<br /> flood insurance premiums,if any; (e)yearly mortgage insurance premiums,if any;and(fl any sums payable by Borrower to
<br /> Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These
<br /> items are called"Escrow Items." Lender may,at any time,collect and hold Funds in an amount not to exceed the maacimum
<br /> amount a lender for a federally related mortgage loan may require for Bonower's escrow account under the federal Real
<br /> Fstate SettlementProcedures Act of 1974 as amendedfrom time to time, 12 U.S.C. § 2601 et seq. ("RESPA"),unless another
<br /> law that applies to the Funds sets a lesser amount.If so,Lender may,at any time,collect and hold Funds in an amount not to
<br /> exceed the lesser amount.Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates
<br /> of expend;tiucs of future Esc�ow Items or othe;wise in accor�ta�ce:v:t�app;icub.e la-w.
<br /> The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentaliry,or entity
<br /> (including Lender,if Lender is such an institution)or in any Federal Home Loan Bank.Lender shall apply the Funds to pay
<br /> the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow
<br /> account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits
<br /> Lender to make such a charge. However, Lender may require Borrower to pay a one-time charge far an independent real
<br /> esta te tax reporting service used by Lender in connection with this loan,unless applicable law provides otherwise.Unless an
<br /> agreement is made or applicable law requires interest to be paid,Lender shall not be required to pay Borrower any interest or
<br /> earnings on the Funds.Borrower and Lender may agree in writing,however,that interest sha11 be paid 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 securiry for all sums secured by
<br /> this Security Instrument.
<br /> If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to
<br /> Borrower for the excess Funds in accordance with the requirements of applicable law. ff the amount of the Funds held by
<br /> Lender at any time is not sufficient to pay the Fscrow Items when due, Lender may so notify Borrower in writing, and,in
<br /> such case Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the
<br /> deficiency in no more than twelve monthly payments,at Lender's sole discretion.
<br /> Upon payment in full of a11 sums secured by this Securiry Instrument,Lender shall promptly refund to Borrower any
<br /> Funds held by Lender. If,under paragraph 21,Lender shall acquire or sell the Property,Lender,prior to the acquisition or
<br /> sale of the Property, shall apply any Funds held by Lender at the time of acquisition ar sale as a credit against the sums
<br /> secured by this Security Instntment.
<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 any prepayment chazges due under the Note;second,to amounts payable if any
<br /> under paragraph 2;third,to interest due;fourth,to principal due;and last,to any late charges due under the Note.
<br /> 4. Charges;Liens. Borrower sha11 pay all taxes, assessments, charges, fines a�d impositions attri�utable to the
<br /> Property which may attain priority over this Securiry Instrument, and leasehold payments or ground rents, if any. If
<br /> applicable Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner,
<br /> Borrower shall pay them on time directly to the person owed payment.Borrower shall promptly furnish to Lender all notices
<br /> of amounts to be paid under this paragraph.If Bortower makes these payments directly,Bortower shall promptly furnish to
<br /> Lender receipts evidencing the payments.
<br /> Borrower shall promptly discharge any lien which has priority over this Security Instnunent unless Borrower: (a)
<br /> agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender;(b) 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 (c) secures from the holder of the lien an agreement satisfactory to Lender
<br /> subordinating the lien to this Security Instrument.If Lender determines that any part of the Ptoperty is subject to a lien which
<br /> may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall
<br /> satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice.
<br /> 5. Hazard or Property Insurance.Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Property insured against loss by fire,hazards included within the term"extended coverage"and any other hazazds,including
<br /> floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the
<br /> periods that Lender requires.The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's
<br /> approval which shall not be unreasonably withheld.If Borrower fails to maintain coverage described above,Lender may, at
<br /> Lender's option,obtain coverage to protect Lender's rights in the property in accordance with paragraph 7.
<br /> Page 2 of 7 NE•2079-0899
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