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UNIFORM COVENANTS Borrower and Lender covenant and agree as ft•llows 103160
<br />I. Payamt of Priaclpal 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. Farads for Taxes and ittwtautee. 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 fall. a sum ( "Funds ") equal to
<br />owtweiRh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />kWdWW 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 ofcurrent data and reasonable estimates of future escrow items.
<br />The Funds shaH 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 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, analysing the account or verifying the escrow iteM unless
<br />Lawlor pays Borrower interest on the Funds and applicable law permits Lender to make such a ch age. Botmmarer and
<br />Leader may agree in writing that interest shall be paid on the Funds. Unless an agreement is MALL Cr appllk" law
<br />requires interest to be paid. Lender shall not be required to pay Borrower any interest or "minp cm. the Funds ,: Lender
<br />afresh give to Borrower, sithtbut charge. an annual accounting of the Funds showing crodkta mead'd&t� to' & Ftnrds{Withe .
<br />purpose for which each debit to the Ftnds was made.. The Funds are pledggd as addf.Ci m4, Wnritj' for d* sums socus+ed by
<br />-this Security Instrument.
<br />If the amount of the Funds'heid by Lender.. together witb the future monthly payments of Funds payable ptior to
<br />the due dates of the escrow items, shalt exceed the amount required to pay the escrow items when due, the excess gall be.
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Furl& If the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due. Borrower shall pay to Lender any
<br />amount netxssary 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. Appliadoo of Payntaats. Unless 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 charges due under the
<br />Note; third. to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. L1ar/ea: Lim. Borrower shall pay all taxes. assessments. charges, tines and impositions attributable to the
<br />Property which may attain priority.over this security Instrument, and leasehold payments or ground rents, if any, i
<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 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 shall promptly discharge any lien which has nriotitv_ever this Secu tr..Inet Imenj unlace Bart~awc. (s).:.
<br />agmesin 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 solinst enforcement of the lies: is:,1CV1 proccedinp 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 shad 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 a4dther hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts find for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower s6ject to Larder's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall inclujde a standard mortgage clause
<br />Leader" have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />A receipts of paid premiums and renewal notices. In the event of loss,. Borrower shall give prompt notice to the insurance
<br />carver 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 proceeds 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-330 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim. then Lender may collect the insurance p
<br />when the notice is given. roceeds. 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 />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 1 and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrewer's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shale pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />C Pteservatioa sad Madan asue of Proper)r;: L easeliolda. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deterigrate or commit waste. If this Security Instrument is on a leasehold,
<br />$birrower shall comply with the provisions of the leswe, and if Hprrower acquires fee title to the Property; the leasehold and
<br />A* title shall not merge unless Lenderagrees to the merger in writing.
<br />7. Proteetias of Lawkr's R is the Pr i
<br />tli Property; Mortgage Insurance. H borrower fails to perform, the
<br />covenants and agreements contained lira 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 .la*s. or
<br />regubtkms); then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lender's nions malt include - paying any sums secured by a. lien which has priority over this Security
<br />instrument, appearing in court, payittgrcasonable attorneys' fees and entering on the Property to make repairs. A though
<br />Lender may t4keaction 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 tender 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 notice from Lender to grower
<br />requesting payment.
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