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<br />UNIFOIIM COVENANTS Borrower and Lender covenant and agree as follows:
<br />1. Psysasist of Prineipl trod 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. Fonda for Tara and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Larder 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 insurance premiums, if any. These items are called - escrow items." Lender may estimate the Funds due on the
<br />besisof currant 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 Lander 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. X4nder shall not be required to pay Borrower airy interest or earnings on the Funds. Lender
<br />uhall give to Bumwer. withow 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.
<br />If the amount of the Funds held by Lender. her with the future monthly payments of Feuds payable prior to
<br />the due data of the escrow items, shall exceed tore amount required to pay the escrow items when doe, •i ne excess shall be,
<br />at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly raym ores .s of Funds. if the
<br />amount of the Funds held by Lender is n,m sufficient to pay the escrow items when due, B,vr ewer shall pay to Lender any
<br />amount necessary to make up the deficiency in one or more payments as required by Lender.
<br />Upon payment in full of all sutra;: secured by this Security Instrument, Lender shaitu 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 heloi b) l.o:iider at the time of
<br />application as a crt-dit against the autos secured by this purity Instfunnent.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments ieceived by Lender under
<br />parapaphs 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. Charm Lleas. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payment% or ground rents, if any.
<br />Borrower shall pay them: obligations in nth: 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 ti, I -coder all notices of amounts
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<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />1.
<br />receipts evidencing the psymenu.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unlc„ Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (h) t nntests in pmid
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opmt-on operj,;! ro
<br />prevent the enforcement of the lien or forfeiture of any pan of the Property, or (c) sec :res from the holder of the lien an
<br />agmvinent satisfactory to lender subordinating the Oc en to this Security Instrument. If Lender determines 11haa and, part of
<br />the lhoperty is subject to a lien which may attain priority over this Secunay Instrument, Lender ma... gise &Wr-oo.er a
<br />notice identifying the lien. Borrower shaOil satisfy the lien or take one or more of the actions set forth abve within 4-C, days
<br />of the giving of notice.
<br />S. Hoard lasursnee. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against Ion by fire, hazards included within the term "eoxteaded coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and Yor the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall mot be
<br />uarieasonably withheld.
<br />All instrance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
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<br />Lerio a shall have the right to hold the policies and re-mewalx. If Lender requires, Borrower shall promptly give to Lender
<br />WO occeipts of paid premiums and renewal notices. In the event of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower oth crwise agree in writing, insurance proceeds shall he applied to restoration or repair
<br />of the Property damaged, of the restorauion or repair is economically feasible and Lender's security is not lessened. If the
<br />irestoration or repair is not economicaiOy feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />aplitlied to the •nr+Q wrurpO by this Security Instniment, whether or not thou wuc, with any cxcess paid to Borrower. If
<br />Borrower abinxions the Property, or dm% not answer within 30 day % a notice from Lender that the insurance tamer has
<br />eilarod to seldt .a .claim. then Lender may collect the insurance ro.xzcds. Lender may use Biae proceeds to repair or restore
<br />the fteperty or io pay sums secured by they Security instrument, whether or not then due ne 30-day period will begin
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<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 paragraph% I and 2 or change the amount of the payments. If
<br />unda paragraph 19 the Property is acquired by Lender. Borrower's right to any insurance 1%)licim and proceeds resulting
<br />from damage to the Property prior to the acquisition %hall pass to Lender in the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. P>resmadon and Maintenance of Property; Leasebolds. 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 acquire, fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Leader's Rights in the Property; Mortgage Insurance. If Ikornmer fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal pri eeding that may significantly affect
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<br />Lender's rights in the Property (such as a pnxetdrng in hankrupic), probate, to, condemnation or to enforce laws or
<br />L regulations). then Lender may do and pay for whatever is nc essar) to protect the,alue of the Property and I.endcO. rights
<br />in the Property. Lender's actions may include paying any sums ,enured h) a lien vohith ha, proanty titer this Secunt)
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<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering mt the Property to make repairs Although
<br />Under may take action under this paragraph 7. 1 ender doe, not hate to do ms
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<br />Any amounts disbursed by Lender under thn paragraph 7 shall heavmc additional debt if Wifts„er wcured M this
<br />Security Instrument Unless Mirr(mer and Lender agree to other term, of pay coma. these ani m,nt, %hall hear interest finrn
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<br />the date of disbursement at the Now rate end shall he payable. Nuh miere,t. utwNi nnitae 11.1ni I ender 1,1 I141fr.•tter
<br />requmtrng payment
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