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UNIFORM COVENANTS. Borrower and 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 Agreement and any prepayment and late charges and any other
<br /> charges due under the Agreement.
<br /> 2. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br /> paragraph 1 shall be applied: first, to interest due; second, to principal; third, to late charges; and last to any other Ca
<br /> charges due under the Agreement. Ca
<br /> 3. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property
<br /> which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall �"�
<br /> pay these obligations directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of ~
<br /> amounts to be aid under this ara ra h and shall rom tl furnish to Lender recei ts evidencin the a ments. �
<br /> P P 9 P P P Y p g p Y �„�
<br /> Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees F„i
<br /> in writing to the payment of the obligation secured by the lien in a manner acceptable to 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
<br /> to prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien
<br /> an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any
<br /> part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give
<br /> Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above
<br /> within 10 days of the giving of notice.
<br /> 4. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or
<br /> flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods
<br /> that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's
<br /> approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage as described above, Lender
<br /> may, at Lender's option, obtain coverage to protect Lender's rights in the collateral in accordance with paragraph 6. All
<br /> insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender
<br /> shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all
<br /> receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the
<br /> insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and
<br /> Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property
<br /> damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or
<br /> repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to
<br /> the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower
<br /> abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered
<br /> to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to 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. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to
<br /> principal shall not extend or postpone the due date of the monthly payments referred to in paragraph 1 or change the
<br /> amount of the payments. If under paragraph 20 the Property is acquired by Lender, Borrower's right to any insurance
<br /> policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent
<br /> of the sums secured by this Security Instrument immediately prior to the acquisition.
<br /> 5. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br /> change the Property, other than in accordance with the Agreement, allow the Property to deteriorate or commit waste.
<br /> If this Security Instrument is on a leasehold, Borrower shall comply with the provisions of the lease, and if Borrower
<br /> acquires fee title to the Property, the leasehold and fee title shall not merge unless Lender agrees to the merger in
<br /> writing.
<br /> 6. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the covenants and
<br /> agreements contained in this Security Instrument, or there is a legal proceeding that�nay sipnificar�#ly affect Lender's
<br /> rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to ehforce laws or
<br /> regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's
<br /> rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this
<br /> Security Instrument, appearing in court, paying reasonable attorney's fees and entering on the Property to make
<br /> repairs. Although Lender may take action under this paragraph 6, Lender does not have to do so. Any amounts
<br /> disbursed by Lender under this paragraph 6 shall become additional debt of Borrower secured by this Security
<br /> Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the
<br /> date of disbursement at the Agreement rate and shall be payable, with interest, upon notice from Lender to Borrower
<br /> requesting payment.
<br /> 7. Ins�ection, Lender or its agent may make reasonable entries upon and inspections of the Property.
<br /> HSNE0356-119B Initials:����-�
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<br /> ORIGINAL COPY
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