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00- 40595
<br />UNIFORM COVENANT'S. Borrower and Lender covenant and agree irx follows:
<br />1. Paymeat of Prtadpal atsd INtarmt; 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, Funds for Taxes and Ins waaot. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note ih 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 />basis of current 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 />Lender may not charge for hawing 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 />i 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. 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 showirng 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. together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's option, either 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 deficiency wm one or more payments as required by Lender.
<br />Upon payment in full of all sums secwmed by this Security Instrument, Lender shall promptly refund to Borrower
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<br />4 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 held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />! 3. Application 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 6--L. to principal due.
<br />lt, Charges; Charts. lk a -rower shall pay all taxca. assessments, charges, �.%nes and impositions atenbuiable to the
<br />Property which may attain priority over this Security 9nstrument, and leaseh Ed payments or grounkt Tents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in tlz iv. manner. Borrower shall
<br />pay them on time directly to the person ov+ 0 ;payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
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<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
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<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
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<br />faith the lien by, or defends against enforcenwrit of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiiure 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 lender determines efiat any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may ga °.t 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 />j of the giving of notice.
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<br />S. 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
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<br />requires insurance. This insurance shall be maintained in the amounts and for :t.he 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
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<br />all receipts of paid premiums and renewal notices. In the event of loss. Borrower skull 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 in insurance
<br />otherwise agree writing, proceeds shall be applied to restoration or repair
<br />! of the Property damaged, if the restoration or repair is economically feasible and Lenders security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance prweeds shall be
<br />applied to the sums secured by slant. Security Instrument, whether or not then due, with any excess paid t s Borrower. If
<br />Borrower abandons the Property, or aloes not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim. then Lender may covlhect the insurance proceeds. Lender may use the proceeds to rgmir or rests re
<br />the Property or to pay &unit, secured by uh6 Security Instrument. whether or not then due. The XWay period will began
<br />when the notice is given.
<br />Unless Fender and Borroweer oahem4se agree in w•rrti ag, any application of proceeds to principal shya, not extend or
<br />postpone the due date of the monies ;y payments referred to to paragraphs I 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 />uiti damage io inc irgxny- prior to the acquisition shall pass to Lerida to the extent of the sums secured by this Secunty
<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.
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<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may signiticantly 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 s clue of the Property and Lender's right%
<br />in the Property. Lender's actions may include paying any sums secured by hen 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 dishursed
<br />amounts 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 paym se ent. the amounts shall bear inicre.t from
<br />the date of disbursement at the Note rate and shall he payahlc. with mtrrest. ulxai nonce front Linder w Borrower
<br />requesting payment.
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