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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: � • ,,.�. 1 U U 5 5
<br />1. Payment of Principal and Interest; Prepayment sad Late Charges. Borrower shat promptly pay when u
<br />the principal or and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Fwds for Taxes sad Iawrance. 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 assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of Nture 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 Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or veriNing the escrow items. unless
<br />Lender 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 agreement 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 />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 ctbe 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 ftnads.beW by Lender, together with the future monthly payments of Funds payable prior to
<br />the dice dates of the escrow itest'as, sW exceed the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's optice, either. Frwmpft repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is n of w5cient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount nec a su7 to make up the deficiencV ib one or more payments as required by Leader..
<br />Upon payment in full of all sums secured by t bis Security Instrument, Lender shalt promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Properly is sold or acquired by Lender, Lcrder shall apply, no later
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrt ment.
<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 late charges due under the piste.; second, to prepayment charges due under the
<br />Notes third, to amounts payable under paragraph 2; fca t>k, to interest due- and 1pst;, to principal due.
<br />4. C awn Liess. Borrower shall pay all taxes, assessments, chreges,, dices and impositions attributable to the
<br />.Property which may attain priority. over this Security Instrument,,; and kasthddr payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided . in paragraph 7, or it not paid in that manner, Borrower shall
<br />M than on tune directly to the person owed payment. Borrower slta6l promptly fumish to Lender all notices of amounts
<br />to be paid under this L paragraph. If Borrower makes these payments directly. Borrower shall promptly famish to Lender
<br />receipts.
<br />... • i w the mien --t-
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower. (a)
<br />agrees in writing to the payment of the obligation secured by the lien iin 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 forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to alien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice ide ti ftag the lien. Borrower shall; satisfy the lien or take one qr more of the actions set forth above within 10 days
<br />of the givingofactiae.
<br />S. Named Iawriume. Borrower shall keep the improventerets'now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included 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 Lender requires, The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall rcpt be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lardershall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by' Borrower.
<br />Unkss Leader and Borrower otherwise agree in writing, insirtaace proceeds shall be applied to restoration or r+epanr
<br />of the Property damaged, if the restoration or repair is economicaii'y 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 />offered to settle a claim. then Lender may.collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begirt
<br />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 l and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from dams 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. PMmatioa and Maiakmaace of Properl , 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 not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Leader's Rigits to 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 may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regubtimX then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt 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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