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<br />UNIFORM OOVENAtV'I3. Borrower and Lender covenant and agree as follows: 89 102304
<br />1. Payaseat.otf PtiscIPI anal Iatereel; Prawyaw t attar Late Cliarm. 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 />L Fewls for Taxis mi btaarance. 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; (e) 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 />basisof current data and ressonableestimatesof future escrow items.
<br />The Funds shall be held in an institution the deposits oraccounts 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 />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Leader 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. r;
<br />If the amount, of.the.Fssuds held by Lender, together with the future monthly payments of Funds payabl�.prior to
<br />the due dates of the ,eSM--' V ;item,; shall exceed the amount required to pay the escrow items when due, the excess gall be,
<br />at Botrcrwees option: Ti;bii Lei qtly repaid to Borrower or credited to Borrower sus monthly payments of Fah s: If the
<br />amount , he Fug fitid by Le is not sufRdemt: to pay the ec row itzvns when *a-- Borrower shall pa3 .tip: Le'-- o azty
<br />amount cecesnary, va nnAe up tee d:ficiency ino".irc:r,-= ,- - '* kmc= asi � bi Wider.
<br />Upon pay in=- I in full of all sums sewnr6 i y ihi; Se aiity Ins mtZrti, Lector: s ' .pry* n :ly refund to Bmr
<br />any Finads ht:ld L �l der. If utrcisrr paragraph 59 the ii'srn�erty is sold or acquired ffi?r,Lvn4, •wader shall apply, no later :
<br />than irm-mdiately prior to the sdeem the Property ca its a ;uisition by Lender, held by Lender at the time of
<br />appnmvan as a credit against thesltms secured by this %=a ty Instrument.
<br />'.1. 'Application of Payments. Unless applic&-le law provides otherwise, 22 payments received by Lender under
<br />paragraphs 1 and 2 slsall be applied: first, to list: ohs. °gtwa due under the Note; second, to prepayme7t charges due under the
<br />Note; th ;rd, to, ---zz dfs payable under parapgpb ?;• fourth. to interest due; and last. spa principal due.
<br />. "Chm = lianas. B&jrvaw shall pry all to es., a ssments, charges, fmc& and impositions attri ibt l:�
<br />Properel to lc's may attain priority over this Security hcs�vument, and leaseholds payments or ;p:'acn,J. tvd.N, if a�3_
<br />Borrower shall pap. bi se obligations in the manner provided in paragraph 2, or if not paid in that r<�ner, Borrower sh Ol
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Leather 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 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 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, 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 the term "extended coverage' and any other hazards for which Lender
<br />requires insurance. This 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 whicl; ?r;:11 not be
<br />unreasonably withheld.
<br />All 'insurance policies and renewals shall be acceptable to Lender and shall include a standard mortggg'e clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly gave to. Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss. Borrower shall give prompt notice to Or. 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 would be lessened, the insurance proems shall be
<br />applied to the sums secured by this Security instrument, whether or 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 insurano.- 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 />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs t and 2 or change the amount of the payments. if
<br />under paragraph 19 the Property is acquired by Lender. Borrowers 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 site sums secured by this Security
<br />instrument immediately prior to theacquisitir..n:
<br />6. Preservation and Maintenance of l?rn;terty; Leatreholds. Borrower shall not destroy. damage or submantially
<br />change the Property, allow the Property to demdcraii` ! r° .ommit waste. If this Stxurity Instrument is on a leasehold,
<br />Fxtraver shall comply with the provisions ofthe igas,,; aloe if Borrower acquires fee tii!e to the Property, the lea -,ehold and
<br />f i* of It shall not merge unless i ender agrees tt) i hie merges in writing.
<br />�,.7. Protection of Lender's Rights in the Propsrg, Mortgago Insurartiv.,•,;. If Borrower fails to perform .M.
<br />d0vc�i4rts and agreements conWa zed in this Security Itutrume'r t, or there is a legal proceeding that may signifCantly a.Tt t
<br />Lenders rights in the Property (such as a proceeding iri'1 mitruptcy. probate. for condemnation or to enforce laws r!.
<br />regulations). then Lender may do End pay far %-+atever ismvessary to protect the salucof.be Property and I.endeer r ight;
<br />to the Property_ Lenders actions may include paying any sums secured by a lien which has priority Aner this Security
<br />instrument, 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 Harrower secured by this
<br />Security instrument Unless Rorreswer and lender agree to other terms of payment. these amounts %hall bear tntcrest from
<br />the date of dtsbursetnent at the Nate tote and Shall he payable, with interest, upon notice from 1 coder rr Borrower
<br />requesting payment.
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