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TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and
<br />fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument.
<br />All of the foregoing is referred to in this Security Instrument as the "Property."
<br />BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the right to grant and
<br />convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will
<br />defend generally the title to the Property against all claims and demands, subject to any encumbrances of record.
<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and non - uniform covenants with limited
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<br />variations by jurisdiction to constitute a uniform security instrument covering real property.
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when
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<br />due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
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<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 ") for: (a) yearly
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<br />taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold
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<br />payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance
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<br />premiums, if any; (e) yearly mortgage insurance premiums, if any; and (f) any sums payable by Borrower to Lender in accordance
<br />with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These items are called "Escrow
<br />Items." Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a
<br />federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures
<br />Act of 1974 as amended from time to time, 12 U.S.C. § 2601 et seq. ( "RESPA "), unless another law that applies to the Funds
<br />sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount.
<br />Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future
<br />Escrow Items or otherwise in accordance with applicable law.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including
<br />Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow
<br />Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying
<br />the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a
<br />charge. However, Lender may require Borrower to pay a one -time charge for an independent real estate tax reporting service
<br />used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or
<br />applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds.
<br />Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower,
<br />without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each
<br />debit to the Funds was made. The Funds are pledged as additional security for all sums secured by the Security Instrument.
<br />If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to Borrower
<br />for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any
<br />time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower
<br />shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than
<br />twelve monthly payments, at Lender's sole discretion.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds
<br />held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the
<br />Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this
<br />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 any prepayment charges due under the Note; second, to amounts payable under
<br />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 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. Borrower shall
<br />pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time
<br />directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this
<br />paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the
<br />payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in
<br />writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the
<br />lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the
<br />enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to
<br />this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this
<br />Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of
<br />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 hazards, including
<br />floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods
<br />that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval
<br />which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's
<br />option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender
<br />shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of
<br />paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender.
<br />Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the
<br />Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or
<br />repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums
<br />secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the
<br />Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then
<br />Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums
<br />secured by this Security Instrument, whether or not then due. The 30 -day period will begin when 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 payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from
<br />damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums by this Security Instrument
<br />immediately prior to the acquisition.
<br />6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br />Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within
<br />sixty days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal
<br />residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not
<br />be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not
<br />destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in
<br />default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result
<br />in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest.
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