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<br /> TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and
<br /> fixtures now or hereafter a part of the property. All replacements and additions sha11 also be covered by this Security
<br /> Instrument. All of the foregoing is refened to in this Security Instrument as the "Property."
<br /> BORROWER COVENANTS that Bonower is lawfully seised of the estate hereby conveyed and has the right to grant and
<br /> convey the Property and that the Property is unencumbered, except for encumbrances of record. Bonower warrants and will
<br /> defend generally the title to the Property against a11 claims and demands, subject to any encumbrances of record.
<br /> THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited
<br /> variations by jurisdiction to constitute a uniform security instrument covering real property.
<br /> iJNIFORM COVENANTS. Bonower and Lender covenant and agree as follows:
<br /> 1. Payment of Principal and Interest; Prepayment and Late Charges. Bonower sha11 promptly pay when due the
<br /> principal of and interest on the debt evidenced by the Note and any prepayment and late chazges due under the Note.
<br /> 2. Funds for Tazes and Insurance. Subject to applicable law or to a written waiver by Lender, Bonower sha11 pay to
<br /> Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum("Funds")for: (a)yeazly ta�ces
<br /> and assessments which may attain priority over this Security Instrument as a lien on the Property; (b)yearly leasehold payments
<br /> or ground rents on the Property, if any; (c)yearly hazard or property insurance premiums; (d)yeazly flood insurance premiums,
<br /> if any; (e) yearly mortgage insurance premiums, if any; and (� any sums payable by Bonower to Lender, in accordance with
<br /> the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These items are called "Escrow Items."
<br /> Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally
<br /> related mortgage loan may require for Borrower's escrow account under the federal Rea1 Estate Settlement Procedures Act of
<br /> 1974 as amended from time to time, 12 U.S.C. Section 2601 et seq. ("RESPA"), unless another law that applies to the Funds
<br /> sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount.
<br /> Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future
<br /> Escrow Items or otherwise in accordance with applicable law.
<br /> The Funds sha11 be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
<br /> (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the
<br /> Escrow Items. Lender may not charge Bonower for holding and applying the Funds, annually analyzing the escrow account, or
<br /> verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such
<br /> a charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate ta�c reporting service
<br /> used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or
<br /> applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or eaznings on the Funds.
<br /> Bonower and Lender may agree in writing, however, that interest sha11 be paid on the Funds. Lender shall give to Borrower,
<br /> without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each
<br /> debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument.
<br /> If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender sha11 account to Borrower
<br /> for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any
<br /> time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower
<br /> shall pay to Lender the amount necessary to make up the deficiency. Bonower sha11 make up the deficiency in no more than
<br /> twelve monthly payments, at Lender's sole discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender sha11 promptly refund to Borrower any
<br /> Funds held by Lender. If, under pazagraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale
<br /> of the Property, sha11 apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by
<br /> this Security Instrument.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, a11 payments received by Lender under paragraphs
<br /> 1 and 2 sha11 be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2;
<br /> third, to interest due; fourth, to principal due; and last, to any late charges due under the Note.
<br /> 4. Charges; Liens. Borrower shall pay all ta�ces, assessments, chazges, fines and impositions amibutable to the Property
<br /> which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Bonower shall pay
<br /> these obligations in the manner provided in paragraph 2, or if not paid in that manner, Bonower sha11 pay them on time directly
<br /> to the person owed payment. Bonower shall promptly furnish to Lender a11 notices of amounts to be paid under this paragraph.
<br /> If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments.
<br /> Bonower shall promptly discharge any lien which has priority over this Security Instrument unless Bonower: (a)agrees in
<br /> writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien
<br /> by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the
<br /> enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to
<br /> this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over
<br /> this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or talce one or
<br /> more of the actions set forth above within 10 days of the giving of notice.
<br /> Fam 3028 9/90
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