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<br />UNIFORM COWNWIS Borrower and i.ender covenant and agree Its folltni S. 89-103669
<br />1. Payaleat of Principal arld later"", Prepayment sad Late Charg". 11orrower 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 thr. Noic.
<br />2. FNadt liar Taxes and imrasme. Subject to applicable law or to a written wai%cr by Lender, ikirrow•er shrill pay.
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ( "Funds ") cqual tr.
<br />one - twelfth of: (a) yearly taxes and asse+sments which may attain priority over this Security Instrument; ((n). yearly
<br />leswhold 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 Mure 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 Lender if Lender is such an institution). Lender shall apply tho 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 Fund,% Unless an agreement is made or applicable law.
<br />requires interest to be 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 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 meld by Lender, together ao 6, the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount ri.qaFi.vd to p rv, the escrow items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or irdited to Borrower on monthly payments of Funds. if the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when-due, Borrower shall pay to Leader any
<br />amount, messary to make up the dodciency in cane or more payments as required by Lender.
<br />Upon payment in full of all turns secured by this Security Instrument, Lender shall promptly refund to Borrgsrer
<br />any Fri % held by Ixnder. If under paragraph 19 the Property is sold or a.,rquired by Lender. Leader shall apply. no later.
<br />than item diately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />applicatkm as a credit against the sums secured by this Security Instrument.
<br />4. Applkation of Payments. Unless applicable law provides otherwise, all 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 under paragraph 2; fourth, to interest due, and last, to principal due.
<br />4,: Char as; Less. Borrower shall pay all taxes, assessments. charges. fines and impositions attributable to the
<br />Property which may attain priority. over this Security In=strument, and leasehold payments or ground earls, if any.
<br />Borrower-shall pay these obligations in the manner provided -ids paragraph 2. or if ndit-pald in that manner, Bomwer 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 ditectly. Borrower shall promptly furnish to l,eaider
<br />receipts evidencing 11*7payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Harrower: (a)
<br />agfeq 4i * —iiins to the paymco cafthe vbiigation secured by the lien in a manner acceptable to Lender. (b) coniems in good
<br />faith the lien by. or defends againiist enforcement of the lien in, legal proceedings 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 />aorremrytt catisfactnry to Lend —er cubo i of na the lien to !h,--. Security _ ngn—i
<br />metre. If Lender det�:tines 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 actions set forth'aboyc w.iff°tin 10 days
<br />of the giving of notice.
<br />S. Hszard isstaraaee. Borrower shall keep the improvements now existing or hereafter &x Dcted on the Property
<br />insured against foss i'ayArc, hazardi included within the term "extended crwerage" and any other hdzArds for which Lender
<br />requires insurance. This insurance "shall be maintained in the amounty 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 the right to hold the policies and renewals. If Lender requires. Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall- give prompt mice to the insurance
<br />carrier and Lender. Lender may nuke 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 swured 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 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. 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 />when the notice is given.
<br />Unless Lender and Bornswer otherwise agree it, writing; any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments mierred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by ;ender. Smrrower's right to any insurance policies and proceeds resulting
<br />from daniage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition-
<br />6- Preurration and Malateaasce of Property; Leath". 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 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. !h'rteetice of Leader's Rights in the property; Mortgage Insurance. if Borrower fails to perform the
<br />covenants and agreements comtaitred in this Security Instrument. or there is a legal proceeding that ma) significantly afrcct
<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 %slue of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority or,er 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 anrountsdisbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured b) this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts. shall hear interest from
<br />the date of ohshurwment at the Note rate and shall he payable. anh interest. upon notice front LCf1dVr 141 Borrower
<br />rcqucming payment
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