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<br />UNiF-ORM COVENAN'M Borr3werand Lender covenant and agree as follows:
<br />1. Psyssent of Ptrkseipal surd Isiersab PreMyoot aid late Clam. Borrower shall promptly pay when due
<br />the principal of and interest cm the debt evidenced by the Note and any prepayment and Grtc; charge% due under the Note.
<br />2. Ftttstla (or Taxes rani imareace. Subject to applicable law or ton 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 fit flrll, a sum ( "Funds ") equal to
<br />on womb of: (a) yearly taxes and mseuments which may attain priority over this Security Instrument; (b) yearly
<br />kaehoid payments or ground rents on the Property, if say; (c) yearly hazard insurance premiums; and (d) yearly
<br />w4ryt p kmronce praMum% if arty- Tl+ w item are called "escrow items," Lender may estimate the Funds due of n the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts etwhich are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shalt apply, tho Funds to pay the escrow items.
<br />Lender may not ekarge for holding and applying the Funds, atalyring the account or verifying the escrow items, unless
<br />L pays Barr wo interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lander stay agree in writing that interest shall be paid on the Funds. Unk-m an agreement is made or applicable law
<br />n quirso interest to be paid, Lender skald tat be required to pay Borrower any interest or earnings on the Funds. Leander
<br />sWl give to Borrower, without charge. an annual accounting olthe 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 thlt: emotmt of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due datet•of the escrow item% shall exceed the arrimmt required to pay the escrow items when due. the excess shall be.
<br />at BorrawWs option, Sither promptly repaid to Berro�wucr or credited to Borrower on monthly payments of Funds. If the
<br />amouint of t*Furufs held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount note nrasry to make up the dellcitacy in one or more payments as required by Lawkv,
<br />Upost;peyment in full of alt vows secured by this Security Instrument. Lender sW. promptly refund to Borrower
<br />any Fund j held by. Lender, If under paragraph 19 the Property is sold or acquired by Leger. Lender shall apply, no later
<br />than immodialdy prior tea. title sale of the Pr: perty or its acquisition by Lta*eT,. any Funds held by Leader at the time of
<br />applicatiou sso credit issim the sums secured by this Security Instrument.
<br />d. A dm's! Pays eeW Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs t; be applied. lint. to late charges due under the Note, second, to prepayment charges due under the
<br />Note third. Lthamotanti payable under paragraph 2, fourth, to interest due; and last. to principal due.
<br />4. ; LitMta. Borrower shall py all taxes, assesunents, charges. fines and impositions attributable to the
<br />Property w moy a tain priority over this Security Instrument. and leasehold payments or ground rents. if any.
<br />Borrower s1i aF1'pay these obligations in. the manner provided in paragraph 2, or if not P64 in that manner, Borrower shall
<br />pay than on bate 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 them payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the p"mettis.
<br />Borrower shall pmniptly discharge any lien which has priority over this Security Instrument unless Borrower. (a)
<br />agrees in writingto the payment of tae obligation secured by the lien in a manner acceptable to tender, (b) conte st-s,ibs good
<br />faith the lien by, or defends against enforcement of the lien in. legal proceedings which in the Lender's opinion op bate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of tlWikn an
<br />a4reemestt satisfactory to Lender aubordmatinit the lkn to this Security Instrument. If Lender doermsns ?hat_ any Mrt of
<br />tier Property k subject to a lien which may attain priority over this Security Instrument, Lender neap live Burrower a
<br />Mice identifying the lien. Borrower shalt satisfy the lien or take one or more of the actions set forth above within 1.0. days
<br />of the givinggUliotice.
<br />S. Hi=d Iasarttaee. Borrower shall keep the imprcKvments now existing or hereafter erected on the Property
<br />insured against loss by Are, baxards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. Thk istsurance shall be maintained in the amounts 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 acceptaNt to Lender and shall include a standard mortgagotdause.
<br />Leader "I have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />alb receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt motive to the insurance
<br />citryierartd gender. Lander may make proof of loss if not made promptly by Borrower.
<br />Uii1�p Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration. ar repair
<br />of the Property damaged. if the restoration or repair is economically feasible and Leader s.security is not lessened. If the
<br />. restoration or repair is not economically feasible or Le:ndees security would.be lessened; the insurance proceeds shall be
<br />&Wied to the sums secured by this Security Instrument, whether or not thin due, with any excess paid to Borrower. If
<br />Borrower abandons the fPtverty, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />odered to settle a claim, then Lender may collect the insurance proceeds:. Lender may use the proceeds to repair or restore
<br />the Propegjr r to pay sums secured by this Security Instrume '.L i nether 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 applicatica6f procceds to principd, shall not extend or
<br />postpone the due date of the monthly payments referred to in psrirgraphs I and 2 or change the amount of the pa,ments. If
<br />ander paragraph 19 the Property is acquired by Lender, Borrowees right to any insurance policies and proceeds malting
<br />Crain damage to the Property prior to tht acquisition shall pass ro Leader to the extent ofithe sums secured by this !ecurity
<br />instrument immediately prior to the acquisition.
<br />OL Practvation ant Mslatemme of Property; Ltms*k & 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 lase, and if Borrower acquires fee title to the Property. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Pnteetiioa of bender's Rida in the Property; Mortgep Insurance. if Borrower fails to perform the
<br />coveaartts end agreements contained in this Security Instrument. or tinge is a legal proceeding tl» st may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations). 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. Unnder's actions may include paying any stems secured by a lien which has priority over 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 shat) become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment. these amounts shall bear interest from
<br />the date of disbursement at the Tote rate and shall be payable, with interest. upon notice from Lender to Borrower
<br />reque ors poyriiehl.
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