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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payttstat of Prindpsl aced Interest; Prepayment and Late Chart”. 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. s
<br />2. Funds for Tara land Insurance. 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 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 />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 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 shad be paid. on the Funds. Unless an agrc -emant is made or applicable law
<br />requires interest to be paid. Leader shalt not be required to pay Borrower any interest or earnings on the Funds. Lender !
<br />&hill give to Borrower, without charge. an somW accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Fiends w&s made. 'L hr- Funds are pledged as additional security for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Ll mdCx, rrj�j5f-rJxer with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exoeed: the mmilant required to pay the escrow items when due. the excess shall be.
<br />at Borrower's option, either promptly repaid: so BMCiier or credited to Borrower on monthly payments of Funds. if the t:,•' ;,;. :` '
<br />amount of the Funds held by Lender is not sufltcietet t:rd Tay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one err r vxi payments as required by Lender.
<br />Upon payment in full of all sums secured; kv Haar. Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragrapb. Vi r,Lr: !)-ur'erty is sold or acquired by Lender. Lender shall apply, no later
<br />than immediately prior to the sale of the Fralxxn� ec ass acquisition by Lender. any Funds held by Lender at the time of
<br />application as a credit against the sums secui.: be &4,,.S curity Instrument.
<br />3. Application of Payments. Untess appD=nt law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 shall be applied: first. to late citarges.rlue under the Note; second. to prepayment charges due under the
<br />Note; third. to amounts payable under paragraph 2; to interest due; and last. to principal due.
<br />d. Ciarga; Liens. Borrower shall pay ail' mw--% assessments, charges, fines and impositions attributable to the
<br />Property whiciy. may attain priority.over this Seca.rity Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall: pay these obligations in the mat uce provided in paragraph 2, or if not paid in that manner. Borrower shall
<br />M them on time directly to the person ovial, pal men&. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragmph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agr. — in writing to the payment of the oblig =eion secured by the Iles: in a manner acceptable to Lender; (b) contests in goad
<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 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. 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 terra "extended coverage ' and any other hazards for which Lender
<br />regaAres insurance. This insurance shall be maintained in the amounts 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 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 otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged. if the restoration or repair is economical .y ieasible and Lenders security is not lessened. If the
<br />restoration of mpair is not economically feasible or Lenders secty would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether erior mat then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice fb= Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender m�ky use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security tnstmment, whether or mir skeet. due. The 30-day period will begin `
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing. any application 0Oroceoh —to Imnr.-ipal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and Z tar, 4-iasiuge the amount of the payments. If
<br />under paragraph 14 the Property is acquired by Lender. Borrower's right try, ?ny, insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender by the eitent of the sums secured by this Security
<br />instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Propert&; 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 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 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. Lender's actions may include paying any sums 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 shall 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 Note rate and shall be payable, with interest, upon notice from Lender to Borrower
<br />requesting payment.
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