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<br />UNIFORM COVENANTS. Borrower and L ceder covenant and agree as follows: 90— 107039
<br />1. Payment of Princlpd and Interest; prilpaymeat sad IAte 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 Tara awn Iwsaranea. Subject to applicablc 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 fcderal 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 />Leader 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 he required to pay Harrower 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 ace pledged as additional security ibr 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 Hot'rowces 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 in one or more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />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 LendeT, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />2. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: lust, to late charges due under the Note; second, to prepayment charges due under Vic
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charges; Lieas, Borrower shall pay all taxes, assessments, charges, fines and impositions atlritrutable 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. Borrower shall
<br />pay them on time directly to the penpii owed payment. Borrower shall promptly furnish to Leader all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments ditcuily. Borrower shat: promptly finish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over tM-� Security Instrument unless 'Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable 10 Lender; (b+ contests in good
<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 :thc enforcement of the lien or -forfeiture of any part of lihe Property; or (c) secures from the holder of the lieu arc
<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 poe Borrower a
<br />notice identifying the lien. Borrower shall satisf) the lien or take one or more of the actions set forth above within 10 days
<br />of the 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 shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />A11 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 Jess if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in wnting, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged. if the restoration or ttrair 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 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 notice from Lender that the insurance earner has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds wo 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 />I. finless Lender and Borrower otherwise agree in wnting, any application of provvWs I,- rrincipal shall not extend or
<br />posapowe the due date of the monthly payments referred to in paragraphs 1 and 2 or chataze t: ,e amount of the payments. If
<br />under paragraph 19 the Properly is acquired by Lender. Borrower's right to any insurance rolicies and iproceeds resulting
<br />from damage to the Property prior to the acqursinon shall pass to Lender to the extent of t'he sums sectored by this Secunty
<br />Instrument immediately prior to the acquisition
<br />6. Preservation and Maintenance of ProperW; leaseholds. Ilgrower shall nct desi:ro %. Jamcage or substantially
<br />change the Property, allow the Pro?+ i-cy to deteriorate or commit waste. If this Sect :rcry i :,cscrument is on a leasehold.
<br />Borrower shall comply with the rros coons of the lease, and if Borrower acquires fie tithe to the Property, the leasehold and
<br />fee title shall not merge unless lender agreess to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; %lortpatte 11=W..,axee. If Iorrower fads to perform the
<br />rwonanar and narreeanems contained in this Security Instrument. or there rs a legal proceeding that may agnificantly affect
<br />Lender's rights in the Propen) (such as a proceeding in hankruptcy, probate, for condemnation or to enforce Iav►v or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the s alue of t he Property and Lender's rights
<br />in the Property. Lender's actions ma) inckide paying any sums secured by a lien which has pnanty over this Security
<br />Instrument, appearing in court, paying reasonahle attorneys' fees and entering on the Property to make repairs Although
<br />Lender may take action under this paragraph '. Lender does not have to do w±.
<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 inters st from
<br />the date of disbursement at the Note rate and shall he payable, with interest, ulxin notice from (.ender to &irrower
<br />requesting payment.
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