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<br />UNIFORM COVENANTS. Borrower acid Lender covenant and agree as follows.
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the
<br />principal of and interest on the debt evidenced by the Note and any prepayment and lace charges due tinder the Note.
<br />2. Funds for Taxes and !Insurance. Subject to applicable law or to a written waiver by Lender. Burrower shall pay to
<br />Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ( "Fonds') equal to
<br />one - twelfth of: (a) yearly taxes and assessments whichmay attain priority over this Security Instrument; (b) yearly leasehold
<br />payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance
<br />premiums, if any. These items arc called "escrow items." Lender may estimaaee the Funds dice on the basis of current data and
<br />reasonable estimates of future escrvaw 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). Leader shall apply the Funds to pay the escrow items. Lender
<br />may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items. unless Lender pays
<br />Borrower interest on the Funds and applicable) law permits Lender to make such a charge. Borrower and Lender may agree in
<br />writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without
<br />charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the
<br />Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the
<br />due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be, at
<br />B. -rower oj•tion, t'rher promptly repaid to Borrower or credited 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 Lender any
<br />amount necessary to make up the defie'iency in urrc or more payments as rtquired by Lender.
<br />Upon payment in full of all sutra secured 61f this Security Instrument, Lender shall promptly refund to Borrower any
<br />Funds held by Lender. If under paragraph 19 4v Property is sold or acquired by Lendir. Lender shall apply, rw later than
<br />immediately prior to the sale of the l"etsperty or its acquisition by Lender, any Funds held by Lender at the time of application
<br />as a credit against the sums secured. b5- !h s Swx; ity Instrument.
<br />$.. Application of Payments. U tless scmplicable law provides otherwise, all payments re"tived by Lender under.
<br />paragraphs I and 2 shall be appliew': first, to tatierharges due under the Note; second, to prepayment: charges due under the "
<br />Note; thiitd, to amounts payable utter paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Propery which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower
<br />shall pay these obligations in the manner provi&d in paragraph 2, or if not.paid in that manner, Bortower shall pay them on
<br />time directly to the person owed payment. Borrower shall promptly furnislt.lo Lender all notices of amounts to be paid under
<br />this paragraph. If Borrower makes these paytilents directly, Borrower shall-promptly furnish to Leader receipts evidencing
<br />the paprtents.
<br />. Burrower shall promptly discharge atiy,Izen which has priority over this Set uriiy Instrument unless Burrower: (a)
<br />agrees in writing to the payment of the obligati.:in,secured by the lien in a manner atcentahle to I ender; (h) contes!s in gnu
<br />faith the lien by, or defends against 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 />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Under determines that any part of the
<br />Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice
<br />identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the
<br />giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance sivaii be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld. '
<br />All insurance policies and renewals shat i dse acceptable to Lender and shall include a standard mortgage clause. Lender
<br />shall have the right to hold the policics.and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts
<br />of paid premiums and renewal notices. In theer ent of loss, Borrower shall give prompt notice to the insurance carrier and
<br />Lender. lender may ro3ke proof of loss if not rnstde promptly by Borrower.
<br />Unless Lenderand Borrower otherwise agree in writing, insurane- proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically f°erissible 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 secured 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-twtice from Lender that the- carrier has
<br />offered to settle a cWm. then Lender may collect the insurance proceeds. Reinder may use the proceedsxo epair or restore tt:
<br />Property or to pay mims-secured by this Security Instrument, whethendretatthen due. The 30 -day periba;gOtbegin when the
<br />notice is given.
<br />Unless Lender and Borrower otherwise agree in writin&an} 4plication of proceeds to principal shall runt extend or
<br />postpone 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 damage 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. Preservation and Maintenance of Property; Leaseholds. 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. Protection of Lendee s Rights in the Property; Mortgage Insurance. if Borrower fails to perform the covenants
<br />and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's
<br />rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or reguiations), then
<br />Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property.
<br />Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in
<br />court, paying reasonable attorneys' fees and entering un the Property to make repairs. Although lender may take action
<br />under this paragraph 7. Letncdet does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower seutred by this
<br />Security Instrument. Unless Burrower and lender agree to other terms of payment, these amounts shall tear interest from
<br />the date of disbursement at the Note rate and shall be payable, with interest. up in notice from Lender to Borto%er request mg
<br />pay rnrn:
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