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<br />100310
<br />UNIFORM COVENAN M Borrower and Lender covenant and agree as follows:
<br />I. Psyneat of Principal and Interest; Pcepayaaent and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Farads tar Taxes aril Iasuaraace. 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 ") equal to
<br />one - twelfth of (a) yearly taxes and asse"Iftents which may attain priority over this Security Instrument; (b) yearly
<br />Itasebold payments or ground taus on the Property, if any, (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance pcemiutrnr if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of eurrent data and ressaeable eat mates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Leader if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Larder may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lander pays Borrower interest on the Funds and applicable law permits Lender. to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an sgreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />sisall 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 security for the sums secured by
<br />this Security instrument.
<br />If the amount of the Funds held by Lender. together with the fitture monthly pa*tnts of Funds payable prior to
<br />the clue data of the escrow item shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient 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 payment in full of all sums secured by this Security Instrument„ Lcr4er shall' promptly refund to Borrower
<br />any Fa:ids held by Leader. If under paragraph 19 the Property is sold or acquiirr by Lender, Lender shall apply, no later
<br />tUm .u-k,:irtely pilots to idled We cif the I ropcc ty or ists acquWtior, by Lc idc , m;y Funds held by Lender at the time of
<br />applioation as a credit against the sums secured by this Security Instrument.
<br />&: AMlids" of Payesents. Unless applicable law provides otherwise, all paymotts received by Lender under
<br />paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4, (.harass; Lkes. Borrower shall pay all taxes, assessments, charges, fines and impositions attributabte..to the
<br />Property which, may attain priority. over this Security Instrument, and leasehold payments or ground rents,, if many.
<br />Borrower". pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower small
<br />pay them oe timedirectly to the person owed payment. Borrower shall promptly furnish to Leader all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Leader
<br />reoesps evidencing the payments.
<br />lb -ZOw: *%*I p..—rk - di haw any i� °..'lakh � prierity ever the• C n,�rity T � nh«►t umten Boo�wr: (a)
<br />agrees in writing to the payment of the obligation secured by the lienin a manner acceptable to Lender; (b) contests in good
<br />faitL the lien by, or defends against enforcement of the lien in, egal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lander subordinating the lien to this Security Instrument- 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 satisfy the lien or take one or more of the actions set forth above within 10 days
<br />ofthe giving of notice:.
<br />S. Hasid Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loo by Am haiaards inel6ded within the term "extended coverage'` and any other hazards for which lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lam, requires. The
<br />insurance
<br />sydrrieirt providing the insurance shall be chosen by Borrower subject to Lender''s� approval wb7xb shall not be
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<br />AD iawramce policies and renewals shall be acceptable to )..ender and shall include a standard roortgalpe clause.
<br />Leader shall have the right to hold the policies and renewals.. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of psid.ptemiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may snake 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
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />ealfe:ed to settle a claim, then Lender may collect the insurance proceed& Lender may use theaproceeds to repair or restore
<br />the Property or to pry sums secured by this Security Insmitnem; whether or not then dun ' The 30-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal sail not extend or
<br />postpone the else date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. if
<br />under paragraph 19 the Property is acquired by Lender, BonowWs fight to any insurance policies and proceeds resulting
<br />f m damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />. 6. Preservation and Maintenance of Propergr, Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall we merle unless Leader agrees to the merger in writing.
<br />7. Protection of %eider's WSW in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a Legal proceeding that ma►ynificantiy ai%et
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), there Lender may do and pay for whatever is necessary to protect the value of vile Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lieu whichi 4.a, priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering amt:he$•ropeety to make repairs. Although
<br />Lender may take action under this paragraph 7. Lender does not have to do soy .
<br />Any amounts disbursed by Lender under this pangnph 7 shall become additional dsE'st of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest'from
<br />the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
<br />requesting payment.
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