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UNIFOItN COVENANTS. Borrower and Lendercovenant and agreeas follows:
<br />1. PAYMM of Principal and Interest; Prepayneat sad Late Charges. Borrower shall promptly pay when due
<br />the principal ofand interest on the debt evidenced by the Note and any prepayment and iate.charges due under the Note.
<br />2. Farads for Taxei mil lummaee. 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 insWMM premiums. 11`4111Y. 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 Leader 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 applicabre law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be psi(# 43. the Female: ,ttnless an agreement is made or applicable law
<br />requires interest to be paid.. Leader shall not be required..,. lay -Borrowrer any interest or earnings on the Funds. Lender
<br />shall give to Borrower, withoachAne, an annual aecowtieftof the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit t6 tae Funds was made. Me Psads are pledged as additional security for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, togetbe r with the ffsture monthly payments "ref Funds payable prior :ia
<br />the due dates of the escrow items shall eatxed the amatiisl to pay the escrow items wham due, the exeess shall be.
<br />at Borrower's option, either pr y repaid to Borm err itx d to Borrower on monthly payments .oi 1*&- If the, .
<br />amount of the Funds held by Lea ter is not sufficient tQ pru x :,>v interns when due Borrower shall :pa tip .order ax y.
<br />amount necessary to matte up:ba&-ficiency in one or mer,: ay sssLn t�rr,�equired by Lender.
<br />Upon paymmt "tar. Wt of all sums secured by this Swauity Lwomment, Lender shall prb= ptly refund to Borrower.
<br />any Funds held by II tinder paragraph 19 the PrYiP"' is.sc�l o r acquired by Lender, Lmder shall apply. no later
<br />than immediately prim• L*s.t,e sale of the Property of ins a�stion by Lender, any Funds held by Lender at the time of
<br />application as a crc&42 t[ t the stuns secured by tMiSM •Instrument.
<br />& App latlw of Payareats. Unless applicable tisiv provides otherwim all payments received by Lender under
<br />paragraphs I and 2 sW 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.
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<br />Ch Idea. Borrower shalt pay all taxes,. moments, charges, fines and impositions attributable to the
<br />Property, which may attain priority. ova this Security Ingrument, and leasehold payments or ground m=is, 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 than on time directly to the person awed payment. Borrower shall promptly furnish to Leader all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall prune v- ly furnish to LendvT
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien-which.has priority over this Security Instrument u11m Burrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to LeMdv; (b) eomtsts in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lemder'sopinion 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 Leader 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 priorirg over this Security Instrument, Lender may gaw Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or cake one or more of the actions set forth abov= within 10 days
<br />of the giving ofnotice.
<br />& Iilarard Inuntrana. Borrowershall kmpt2te improve;t mrs now existing or hereaft=e" acted on the Property
<br />insured against loss by fire, hazards included witth-m t .- term. "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained: sr,: the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen. ►�iy Borrower 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 rasdos 4( paid premiums and renewal notices. In the Vent of loss. Borrower shall give prompt notice to rhAr insurance
<br />carrier amd!Lvnder. Lender may make proof of loss if not made promptly by Borrower.
<br />UrSest Larder 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 t t
<br />restoration or repair is not economically fusible or Lenders security would be lessened, the insurance prccmds shah's►.
<br />applied fa the sums secured by this Security Instrument, whether or not then dui with any excess paid to &:grower. If
<br />Borrowe rabandons the Property, or does not answer within 30 days a notice from Lender that the insuracrae-carrier has
<br />ollered to settle a claim, then Lender may roper tlze; i nwmwice proceeds. Lender may use the psreseeds to repair or restore
<br />the Property or to pay sums secured by this Swuny rn.•xrument, whether or not then due. The 30-day period will begins.
<br />when the notice is given. .
<br />Unless Lender and Borrower otherwise agree in wratyrrg, any application of proceeds to principal shall ace extend or
<br />postpone, the due date of the monthly payments referred' In iM 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, Presaxtsmdm anal MSIMN nee of Pro",- Leaseb dds. 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. Pratectioa of Leader's Rights 1a tits 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 bender may do and pay for whatever is necessary to protect the value of the Property and t Andsr'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 />L Instrument, appearing in court. paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lendermay eke action under this paragraph 7. lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 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 dtsbutsement at the Note rate and shall be psyaDle, with interest, upon notice from Lender to Borrower
<br />requesting payment.
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