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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 89` 1 v 05 a5
<br />I. Payweat of Prisellal and Iaterat; Prepayment 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. Fwmb for Tara and Imarium. 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 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 />Lenda 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 requited 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 fbture monthly payments of Funds payable prior to
<br />the due data 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 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 DA of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender 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 />applieation as a credit against the sums secured by this Security Instrument.
<br />3. Applfatka of Paytaeists. 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 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. (lanes; 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.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2. or if not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment Borrower shall promptly furnish to Lender all notices of 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 />Borrower shall promptly discharge any lien which hear eric►rity nyer this G rarity in4�..., t Uldess Rotroe er, (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 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 a lien which may attain priority over this Security Instrument,. Leader• may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the schema set forth above within 10 days
<br />of the giving of notice.
<br />3. ilasard Laaraaee. Borrower shall keep the, improvements now existing or hereafter erected on the Property
<br />insured against km by fin, hazards included within the term - extended coverage" and any other hazards for which Lender.
<br />requires insurance 'Phis 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 not be
<br />unstably withheld.
<br />All insurance policies and renewals. shall be acceptable to Lender and .hail include a standard mortgagq clause.
<br />Lender shall have the right to' hold the pdir m and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewaN mDdces. In the event of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proofof 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 kssened. 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 o r 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 insurph a weeder bs
<br />offered to settle a claim, them Leader 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 application of proceeds to p 6ricipal 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 19 the Property s. acquired by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />frond damage to the Property-prior to the acquisition shaDli pass to Lender to elte,extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Pfeserrstdon and MNatenaaetetProperp, 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 />Borm*er shall comply with theprovisions of the lease, and if Borrower acquires fee-title to the Property, the leasehold and
<br />feeritk shall not merge unlessisnder agrees to the merger in writing.
<br />7. Protertios of LeimWs Rights 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 />Leader's rights in the Property (such as a proceeding in bankruptcy, probate, for cwndemmeti6n or to enforce !aWs ear
<br />fqp ations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lander_ s eights
<br />in; the Property. Lender's actions may include paying any sums secured by .a lien which has priority aver'this Security
<br />Ins2rvnent, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. AI'th&agh
<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 shalt become additional dent of Borrower secured by this
<br />Security instrument. Unless Borrower and Lender agree to other terms of payrnenif 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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