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<br /> UNIFORM COVIEV4ANTS. F40170v eev and Lender coveriOnt ar10 agree as follows
<br /> 1. Payment of PdncW and InWrm t; Pr+epaiyamat and Lab Ch"gas. Somywiiwshatl prci aptly tsar when due the
<br /> principal of and interest on the debi evidenced by the Note and'anyr..prepayment late ctiargft.due,umler thee Note.
<br /> 2. Funds for Taxes and Insurance. Subject to applicable taw or to a writteen M~iet by Lender, Borrower shalt pay :
<br /> to Lender on the day monthly payments are due under the'Note ; until the.Nole is paid in full, a sum ("Fuode);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 pre:miurris; 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 oraccounts of which are insured or guaranteed byafederal 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 /> 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 intem t 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':o 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
<br /> by the Security Instrument.
<br /> If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the
<br /> due dates of the escrow items, shall exceed the amount required to pay the escrow items when due. the excess shall be, al
<br /> Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. It the
<br /> amount of the Funds held by Lender is not sufficient to pay the escrow items when due. Borrower shalt 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, Lender shall promptly refund to Borrr wer any
<br /> Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, no later tear,
<br /> 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 Instrument.
<br /> 3. Application of Payments. Utiless 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 chr,rges due under
<br /> the Note: third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br /> 4. Charges; l.lens. Borrower shall pay all taxes, assessments, charges, fines acid 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 oil notices of amounts to
<br /> be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br /> receipts evidencing the payments
<br /> Borrower shalt promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br /> agrees in writing to the payrrient of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in
<br /> good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion
<br /> operate to prevent the enforcement of the lien or forfeiture of any part of the Property; or secures from the holder of the
<br /> lien an agreement satisfactory to. Lender subordinating the lien to this Security Instrument. If Lender determines that any
<br /> 2a -t of 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 of
<br /> the givinj of notice-
<br /> Hazard Insurance. Borrower shall keep the improvements 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
<br /> Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires.
<br /> The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shalt not be
<br /> unreasonably withheld.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br /> Lender shall have the right to hold the policies and renewals. If Lender requires. Borrower shall promptly give to Lender all
<br /> 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 /> 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 wpuld be lessened, the insurancc proceeds shaft be
<br /> applied to the sums secured by this Security Instrument, whether or Sot then due, with any excess paid to Borrowet. If
<br /> Borrowpr 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 begin
<br /> when the notice is given.
<br /> tr, Unless Lender and Borrower otherwise agree in writing, anv anr!icalion 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 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. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, or damage or substan-
<br /> tiaily change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br /> Bormwer shall comply with the provisions o! 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. Protraction of Lender's Rights In the Property; Mortgage Insurance. It Borrower fails to perform the covenants
<br /> and agroemews contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's
<br /> rights in the Property (such as a proceeding in bankruptcy, probate, to,, condemnation or to enforce laws or regulations).
<br /> then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the
<br /> Property. Lender's actions may include paying any sun-t:: secured by a lien which has priority over this >eruri!y
<br /> Instf ument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs Although
<br /> l ender 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 to.rms 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 Burrower
<br /> requestng paymeni.
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