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UNiPORM COVENANTS. Borrower and Lender covenant and agree as follows:
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<br />I. Payw4M at Principal rand Inttrwt; Prepaytaent mad Late C'koW. 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 />& Fends Ibr Taxer and lawraaee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments ace 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 />lesmehold payments, or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mort page insurance premiums, if any. Theme items are called "escrow items." Lender may estimate the Funds due on the
<br />basis ofcurre nt 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 Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />` Leader 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 intent shall be paid on the Funds. 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 />siaall give to Borrower. without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which eachdebit to the Funds was made, The Funds are pledged as additional security for the sumssecured 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 />the due dates of the escrow item!% shall exceed the amount tt IttA to pay the escrow items when due, the excess shall be,
<br />at Borrower's option. either promptly repaid to Borrower or _ re&ted to Borrower on monthly payments of Funds. If the
<br />h amount of the Funds held by Lender is not suffreneht to pay tyre escrow itesrrs: when due, Borrower shall pay to Lender any
<br />' amount necessary to snake up the deficiency in oher or more pso meats as required by.l..ext .m
<br />Upoet payment in fill of all sums secured by this Security Instrument:: heandesshall promptly refund to Borrower
<br />- any Funds held by Lender. If under paragraph 19 the Property is sold or acduivd 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.: Applfartlon of Payseeat'a. Unless applicable law provides otherwise, all payments received by Lender und
<br />? paragraphs i and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the er
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4, C.lergem; L1aaa. 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 payments or ground rents, if any
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner. Borrowershau �
<br />j pay them on time directly to the perwo owed payment. Borrower shall promptly furnish to Lender all notices of amunts
<br />to be paid under this paragraph. If Becrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidewing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower. (a)
<br />agrees m wntmg to tae payment of tee obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enfonxment of the lien in, legal proceedings which in the Lender's opinion operate to
<br />pmmt the enfonxinent of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />! a& —m rraw`si iiai6fa6tury it, 14ndct subotdinating 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 shall 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. Hasard Insurance. Bornmer shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards iipcjwdsed within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This imurance.shiif be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance sha4,ble chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and•.nxvc*als shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold bite 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 notice to the insurance
<br />carrier and Leader. Larder 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 />:1 of the Property damaged. if the restoration or repair is economically feasible and Lender's security is not lessened. If the t
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be y
<br />applied to the sums secured by this Security Instuument, 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 Instruneagt:, whether or not then due. The 30-day period will begin
<br />when the notice is given.
<br />Unless Lemdes and Borrower otherwise agree in writing, any apo"tion of proceeds to principal shaft not extend or
<br />postpo■e 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, Borrower's right to any insurance policies and proceeds resulting
<br />from dsmW 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 />46 Pftmwwsdm and M$hdewee of Property; Leamelrsids, 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 tick shall not merge unless Lender agrees to the merger in writing.
<br />7. Pretteetkw eat Leader's (digits in tie Prapetty; Mortgsgr lasursace_ if Borrower fails to perform the �
<br />covenants and agreements contained in this Security instrument. or there is a legal proceeding that may significantly affeLt
<br />Lender's rights in the Property (such as a proceeding in bankruptcy. probate, fur condemnation or to enforce itiws or
<br />regulations). then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's sights'
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Smurityr
<br />instrument. appearing in court, paying reasonable attorneys fees and entering on the Property to make repairs. Alihough
<br />Lender may take action under this paragraph 7. Lender does not have to do so.
<br />Any ammnts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security instrument. Unless Borrower and Lender agree to other terms of payment. these amounts sh3it bear interest from
<br />the date of drsbursernent at the Note mle and shall be payable, with interest. upon notice from Lender to Rinrower
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