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UNIFORM COVENANTS Borrower and Lender covenant and agree as follows:
<br />90.10538L
<br />1. Pgysntlt of Principal and Interest; Prepayment std Late Charon. Borrower shall promptly pay when due
<br />She principal of and interest on the debt evidenced by the Nate and any prepayment and late charges due under the Note.
<br />& Fu is for Tauss and Insuranee. 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 />ogle- tweUth 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 insummm premiums, irony. These items are called "escrow items." Lender may estimale the Funds due on the
<br />basis ofcurrent dsto and reasonable estimates of future escrow items.
<br />IU Funds shall beheld 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, 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 />Lender 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 shisH 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 shade. The Funds are pledged as additional security for the stems 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 />1 the due data of the escrow items, shall exceed the amount required to pay the escrow items when due. the excess shall be.
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />y amouM of the Funds held by Lender is not sufficient to pay the escrow items when due. Borrower shall pay to Lender any
<br />` amount neoessary 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 Pr(W%iy 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. Aplilkalkin of Pit y asats. Unless a pp licable law provides otherwise. all
<br />payments received by Lender under
<br />paragraphs I 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 umkr paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Cram Liens. Borrower shall pay all tliites, asaw+rmmtlt, charges; fines and imps stuns alfrilwishte to thr
<br />Property which may attain priority, over this Security Instrument, and leasehold payments or ground runts, if any.
<br />Borrower WWI pay these obligabocan in the manner providJ in paragraph 2. or if not paid in that manner, Dorrower shall
<br />pay them on time directly to theperve owed payment. 111mrower shall promptly furnish to Lender all notices of amounts t 1
<br />l to be under this paragraph. If Borrower maikes three Y P P Y
<br />' I Paid payments directly, shall rum tl furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge arty 'lien wlnict lass 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 />j prevent the enforcement of the lien or forfeiture of any part of the Property, or (c) secures from the holder of the lien ao
<br />agreement satisfactory to tenets subordinating the lien to this Securiel. 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;oaten set forth above within 10 days
<br />of the giving of notice. - --
<br />;2, S. Haurd lasttnaee. Borrower sh,,41 keep the improvements now existing or hereafter erected on the Property
<br />insured against lost by fire. hazards included wa;mn the term "extended coverage" and any other )'a :nzards for which Lanat-er
<br />{ requires insurance. This insurance shall be maintained in the amounts and for the periods tla.rt Lender requires. The
<br />insurance carrier provWial the iwiitrsrice entail be choaeu by Borrower subject to Lender's approval which shall tow be
<br />unroationably withheld.
<br />.al AB insurance policies acid Tenewals ehall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policw % tend renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and teitewd notices. In the event of loss. Borrower shall give promp( notice to the insurance tt�rs
<br />carrier and Leader. Lender may riulte proof of loss if not made promptly by llorrowvcr.
<br />Unless Lender and Borrower otherwise agree in wrnong, insurance proceeds :,.:ai 19 he applied to resltwa< „^n or repair
<br />of the Property damaged, if the restoration tw repair i% emm mically feasible and Lender's security is n%v Ia+.;:ned. If the �.
<br />restoratioa or repair is not economically fra:%sale or Lender's security would he Ieswried, the aosu ranee proceeds shall be
<br />applied to the sums steeured by this Security instrument. whether or not then due, with any kt(ctsS 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 />1 offered tosettle a claim, then Lemtfer may collect the insurance proceeds. lender nial, uw the proceeds to repair or restore
<br />1 the Property or to pay sums smucad by this Sea unty Instrument, whether or rkn Owvu due. The 30 day period will begoth
<br />when the notice is Sines
<br />Unless Lendetr w4d Borrower otherwise agree in writing, any application 4-if pro.eWs uo) pr- incipal shall not extend or
<br />postpone the due date of the moilithly payments referred to in paragraphs I and : or cbwnga the amount of the payments. If
<br />I under,paragraph 19 the Preperep iy acquired by Leader. W-- ewer's right to any insu :.-u ve policies and prik:"s resulting
<br />! firer datnew to the ProoertV mior to the wAumsmo ahali mmn to Lender to the eaaem ol'the sutm secured by this Secuntv
<br />insimmeti immediately prior to the acquisition
<br />6. Pmerdtios cwt) Maisteaance of Property; L.emebolds. Borrower %half tkw ate%tro), damage or substantially
<br />change the Property. allow the Property to deteriorate or commit waste. If thty Seaunty Instrument m 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 tide shall not merge unless Lender agrees to the merger in w hang
<br />7. Probetbs of Lwa/er's Rights is Ire Property; %fortgage lasurance. If Horrower fails to perform the
<br />covenants and agraments contained in this Security Instrument. or there i% a legal preceding that ma% %igniftcand) rfTect
<br />Lender's rights in the Property (such a% a proceeding in bankruptcy. probate. Gin condemnation t►r It► enforce law. tit
<br />regulations). then Lender nay do and pay for whatever iti neceswr) to protect the %clue of the Property and Lender'% right%
<br />in the Property. Lender's actions may include paying any sums secured by a lien which ha% priunh mcs Nu% Security
<br />Instrument, appearing in court. Paying rasunable attorneys' fees and entenng tint he Property it) make repro% Although
<br />Lender may take action under this paragraph 7, Lender does not ha%e to do %u
<br />Any amounts disbursed by l ender under this paragraph 7 %hall lecome addituaiul debt of Ilttrrttwcr enured h% the%
<br />Security Instrument. Unless Ilo►rrower and Lender agree to tither teem of pa% merit • Ihe.c ,,mount% %hull tk .ir uuermi titnn h'
<br />the date of disburscmail at the Note rate and %hull he pa)ahle. wuh Intere%t, ut►tan nttrnte than I ender tit Ilotrotter
<br />requesting payment.
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