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<br />88__ 101155
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<br />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
<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 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 offuture escrow ite!I1s.
<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 Ihe 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 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 eamings 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 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 10 pay the escrow items when due. Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one or lIIore 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. Ifunder paragraph 19the Property is sold or acquired by Lender, Lender shall apply, no I,lter
<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 prO\'ides 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 last. to principal due_
<br />4. Ch31'ges; Liens. Borrower shall pay all taxes, assessments. charges, fines and impositions attributable 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 ifnot paid in that manner, Borrower shall
<br />pay them on time directly to the person owed 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.
<br />Borrower shall prompt I)' discharge any lien which has priority over this Security Instrument unless Borrower: (n)
<br />agrees 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 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 detennines that any part of
<br />the Property is subject to a lien which ma)' attain priority O\'er this Securit)' Instrument, lender may gi\e 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 imprO\'ements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the tenn "extended coverage" and any other hazards for which lender
<br />requires imurance. 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 b)' Borrower subject to lender's appro. al 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 ha\'e the right to hold the policies and renewals. If Lender requires, Borrower shall promptly gi\'e to lender
<br />all receipts of paid premiums and renewal notices. In the e\'ent of loss. Borrower shall gi\'e prompt notice to the insurance
<br />carrier and Lender. lender may make proof ofloss ifnot made promptly by Borrower.
<br />Unless Lender and Dorrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economicall)' feasible and lender's security is not lessened. If the
<br />restoration or repair is not economicall)' 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 d()(.'S not answer within 30 days a notice from lender that the insurance carrier ha<,
<br />offered to settle a claim. then Lender may collect the insurance proceeds. lender may use the proceeds to repair or r~tore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. The )O-da)' period \\iII begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in 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 procn>ds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums sceured by this St.'Curity
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; leaseholds. Borrower shall not destroy, damage llr substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this &-.:urity 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; ~Iortgage Insurance. If Borrower fails to perf('rm 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 condemnatioll or to enforce laws or
<br />regulations), then Lender nlay do and pay for whatever is necessary to protect the \"alue of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying an)' 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 dOt.'S 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 hear mlereM from
<br />the date of disbursement at the Note rate and shall be payahle. with interest. lIpoll notice fWIll h'llder It' Borrower
<br />requesting paymen!.
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