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UNIFORM COVENANTS Borrower and Lender covenant and agree as follows:
<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 for 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 arc due under the Note, until the Note is p: id 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 shal! be held in an institution the deposits or accounis of which arc 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 tnay not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays Bo,:nower interest on the Funds and applicable law permits Lender to make such a charge Borrower and
<br />Lende~ may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to bc'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 de')its to the Funds and the
<br />purpose for which each debit to the Furids 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 future monthly payments of Funds payable prior to
<br />the due dates of the zscrow items, stall exceed the amount required to pay the escrow items when due, the excess shall ire,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amour:; of t!;L Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender ay..v
<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 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 />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under
<br />paragraphs l 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. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over inns 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 :hall promptly discharge any lien which has priority over this Securty Instrument unless Borrower: (a)
<br />agrees ip .vriting 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 />pre%ent the enforcement of the lien or forfeiture of apy part of the Property; or (c) secures front [lie holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determine% 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 tai:_ oae or more of the actions set forth above within 10 days
<br />Of the giving Of notice.
<br />5. 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 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 tl ;c right to hold the policies and renewals. If Lender requires. Borrower shall - rortpOy give to Lender
<br />al! receipts of paid premiums and renewal notices. In the event of loss. Borrower shall give prompt notice to the insurance
<br />car tier and Lender. Lender ntay make proof of loss if not mad_ promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or rep:.ir
<br />o' tttc 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 proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or nct 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 insurance carrier has
<br />offered to settle a claim, then Lender may collein the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to ray suns secured by this Security Instrument, whether or not then ddc. The 30 -day period will bcgi,t
<br />when r he notice is given.
<br />Unless Lender and Borrower other%%tse agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due Sate of the monthly payments referred to in paragraphs I 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 surr.s secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Botro%%cr 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 acgaires fee title to the I'ropcny. the lc.sehol] and
<br />fee title shall not merge unless Lender agrees to the merger in %vriting
<br />7. Protection of Lender's Rights in the Property; Mortgage Inscrance. if Borrower fails to perfurin the
<br />co%enant,, anti arrccricrts contained in this Security Instrument, or there is a legal proceeding that may significantly atTcct
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce 1sws or
<br />-egulations), then Lcoder may do and pay for whatever is necessary to protect the value of the Property and Leader's rights
<br />in the Property. I- cndcr's actions may include pay�ng any sums secured by a hen which has priority over this Security
<br />Instrument, appearing in court, paying reasona'ale attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under this paragraph 7, Lender does not hawe to do so.
<br />Any amounts disbursed b} Lcndcr under this paragraph 7 shall become additional debt of Borrower secured bw thu
<br />Sccurnty Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable. with interest, upon n, ice from Lender to Born %ker
<br />requesting payment.
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