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<br />10116 8
<br />UNIFORM Cov E%A%TS. Borrower and Lender covenant and agree as fol lows:
<br />1. Payment of Principal and Interest; 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. Funds (or Taxes and Insurance. 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 grand tents 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 accquats of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is.stwh an institution). Under shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and aliplwrg the Funds, am,11 -ang the account or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Furids -aitd applicable lali permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be'p+aid ou the Funds. Unless an agreement is made or applicable law
<br />requites interest to be paid, Lender shall not.. be req�ir^vk.rr: pay.Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower. without charge, an arirual.aceot ai^.g o€ he Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds %as made. The Funds arerjedged as additional security for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, togsLl= with the future mQathly payments of Funds payable prior to
<br />the due dates of the escrow iv ms, shall exceed the atno: r .required to pay the escrow items when due, the c,,vms shall be,
<br />at Borrower's option, either promptly repaid to Bo r* . v .z or credit d to Borrower on monthly; payments rf Ct:ods. If the
<br />amount of the Funds held by Lender is ncir: st ff cient_ v ' ay the escrow items when due, Borrower shall pay to Lender any
<br />amcunt necessary to make up the deficiency ti one or r,;ire payments as required by Lender.
<br />Upon payment in full of all sums secured by i5ji:, :Security Instrument, Lender shall promptly reN to Borrower
<br />=.sy rands held by Lender. If under paragraph 1 e t1-r? F"Peny is sold or acquired by Lender. Lender shalt: apply, no later
<br />than immediately- prior to the sale of the Ptpperty or its acquisityarr, by Lender. any Funds held by Lender at the title of
<br />application as a czutit against the sums s+a- by this Security L71st- mment.
<br />3. Application of Payments. Urdims. applicable law p*c otherwise, all payments received by Lender uns^L°r
<br />paragraphs 1 and 2 shall be applied: first, tc-Ite charges due undervie Note; second. to prepayment charges due under the
<br />Note; third, to amounts payal_ l;; under paragraph 2; fourth, to in'frr : due; and last, to principal.due.
<br />4. Charges; Liens. fii•rrower sh,�3 pay all tax�,:ass--kmt tors, charges, fines and inipesitions attributable to the
<br />Property which may attain priority o-.-p, Security ,Insir¢ia rot: and leasehold raymerlt i or ground rents, if a � .
<br />Borrower shall pay these. obligations it,, thtr manner prc,,ity +4,° itt.1 ,ragraph 2. or if not. paid in that manner, Borrower sl;all
<br />pay them on time directly to the persvWc4ed paymettr.. M. r -rower shall promr0y furnish to Lender all notices of amounts
<br />to be paid under this paragraph_ If fiotrr i"r makes Chet a payments directly, 1= orrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharges 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 in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of t.'ae lien in, legal prcceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture cf any part of the Prepert r, tar (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the; limn te, this Security Inst rument. 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 />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within tttetrrm "extended coverage"' and any other hazards fur which Lender
<br />requires insurance. This insurance shall: he maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurano : ihafl he chosen by 13cm.,wer subject to Lender's approval which shall 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
<br />all receipts of paid premiums and renewat notices. in the event of loss. Borrower shall gibe prompt notice to the insurance
<br />carrier and Lender. Lender may make r�rcof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall to applied to restoration or repair
<br />of the Property damaged. if the restoration or repair is economically feasible and Lender%, 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 Se�:urity instrument, whether or not then due, with any excess paid to Horrow ; If
<br />Borrower abandons the Property, or dr;e4 not answer u,. -Ohin 30 dais a notice from Lende, that the insurance carner )t a
<br />offered to settle a claim, then Lender naJ collect the in._ran, o f ro. u i.4 Lcretermay use the proceeds to repair or rEStt�re
<br />the Properly cur to pay sums secured by this SccurivV In,,,vramen i. c:;re;.,cr or not then due. The 30 -dal, ra ald %111 begin
<br />when the notice is given.
<br />Unless Lender and fi ,nc. er tth- rwise agree in writing, any application of proceeds to princip_�; _y ::.rod or
<br />postpone the due date of the n c..t.b.ly payLncnts referred to in paragraphs 1 and 2 or change i h:: amo:x r •f the paymcnv, If
<br />under paragraph 19 the Propert ;, ,s:La- 7_tr-.d by Lender, Borrower's right its any insuran -.e f aicics'L-- d proceeds resulting
<br />fromdamage to the Property pncTx-3 ?i. :acquisition shall passto Lender to the extent of tot sums secured by this Security
<br />Instrument immediately pror'tn the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Horrvr•s o ;, • not c',, ;.t niy. damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. , i :h:, see.:ntr [astrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease. and if iorrower '` ' ";t •: Property. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Flights in the Property; Mortgage E- v ,. Nrrr 1;ails to perform the
<br />covenants and agreements contained to this Security ln%lrutnent. or there is a ;e, a; y r z, u,1t• t1;;tt +y.;ay significantly aRect
<br />Lender's rights ut the Property- (such t% a proceeding in bankruptcy, probate. for c: or to enforce laws or
<br />regulations), then Lender tray doand pay for whatever is necessary toprotect the value o C1hv ?rvpcny and lenders right,
<br />L in the Propert). Lender's actions tnay include paying any sutra wcured by a lien which' has priority over the% Sccuruy
<br />Instrument. appeating in court. payiui: reasonable attorneys' fee %and entering on the Property to, make repair~. Although
<br />lender may take action under ihi% paragraph 7. Lendrntoe% 1101 have todww
<br />Any atnouni�. di %burled by i ender tinder this paragraph '?,-hall become additional debt of Hotro%%cr %ecured by thi%
<br />seeunty limfurttent Unless ltnrto*tver ar.d I envier agree tni.ther terms of 11.1ymeo1. these ann •ants shall hear tr.tctoo from
<br />the date 44 disbursenicitt it the %#,te rate anti 01:111 be !'.jyah'.e. v.ith niterest, uf•on tW ;:; Irvin I ender. tt, H.•rw:vo r
<br />requo.unt, p.njoeot
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