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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows- 189— �tq7,,J
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promp ue
<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, Funds for Taxes and Insum ace. Subject to applicable law or too 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 />j one—twelfth or (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 ofcurrent data and reasonable estimates 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 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 verifying the escrow items, unless
<br />Leader 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 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 future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, 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 eismw items when due, Borrower shall pay to Lender any
<br />amount necesaq to make: anp<thit defick=y in one or more payrnemts as required by Lender.
<br />Upon payment in 6A ofafl starts secured by this Security I"restrument, Lender shall promptly refund to Smmwer
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, ito later
<br />than imme liately prior to Iii imk of the Property or its acquisition by Lender, any Funds hell! by Lender at the time of
<br />application as a credit against G1ae<se mks secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I acid 2 shall be applied: fast, to late charges due under the Note; second, to p myment charges due under the
<br />Hate, third, two amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />' ' 6. I Jens. Borrower shall pay all taxes, assessments, charges. fines and irnposid ms attributable to Oti,
<br />Property which may attain priority, over this Security Instrument, and leasehold payments cu*catnd.rents, ;W. any, '
<br />Borrower shaft: pay these obligations in the manner provided in ,paragraph 2, or if not paid im that nr=aer;,, Barrawer shall
<br />pay them on ruse directly to the person owed payment. Borrower shall promptly furnish try. Lender an. notices trf amounts _
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender .-
<br />receipts evidencing the payments. ::
<br />waaan►ca ahaaal ravMptsy aaaaGlaau�c aLy iIa7a w'aiaGu aaa5 plavaatji v.ic1 iatis &a uraiji stlsarufncni uri>tss aVrruwCr: (i)
<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 forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agrneatout satisfactory to Lender 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 kknd jriiatg the lien. Borrower shall satisfy the lien or take -one or more of the actions set fortk above within 10 days
<br />ofthegivingofttatim
<br />S. Humd 120wasee. Borrower shall keep the improvements now existing or hereafter eructed on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other lraiards for which Lender
<br />requires insurance. This insurance shalt be rziaintaztred 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 not be
<br />unreasonably withheld.
<br />All insurance policies and renewals s6aII bt acceptable to Lender and shall include a standard mortgage clause. j
<br />Lewder shall have the right to hold the policies and renewals. If Lender requires. Borrower shall promptly give to Lender
<br />all receipts of paid premiumsand renewal notices; ra 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 />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall beap &ed 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 Leader'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 Maid to Borrower. 'If
<br />Borrrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />oWered 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 begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any applicatinm of proceeds to principal shall not extend or
<br />postpone the dine date of the monthly payments referred to in paragraphs 1 acid 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 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. Prewrvatim mA NWateamm of Proper$ r, Leasekgb. 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 Pr"
<br />y;Pe leasehold and _
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Preteetiwr of Leader's Ruts 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 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 />regulations), 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 �j+(r�
<br />L litstrument, 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 t..
<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 w
<br />requesting payment.
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