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<br />UNifORM COVENANTS" Borrowcr and Lender covcnant and agree a~ foll()w~:
<br />I. Payment of Prineipal Rnd Interest; Prepayment and Late Charlles. Borrowcr shall promptly pay whcn duc
<br />the principal ofamJ interesl on the debt evidenced by the Note and any prepayment and late charges due under the NOle.
<br />2. Funds for Taxes and Insurance. Subjcctlo applicable law or to a wrillcll waivcr by Lcndcr, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note. untillhe Notc is paid in full. a sum ("Funds") equal to
<br />one-twelfth of: (a) yearly taxes and assessments which may attain priority ovcr this Sccurity Instrumenl; (b) ycarly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazald insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These ilems are callcd "cscrow items"" Lcnder may estimalc Ihe Funds due on Ihe
<br />basis of current data and reasonable estimates of fUlurc cscrow 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 Ihe Funds to pay Ihe escruw items.
<br />Lender may nOl charge for holding and applying the Funds, analyzing the account or vcrifying the escrow itcms, unless
<br />Lendcr pays Borrower interest on the Funds and applicable law pcrmits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agrcement is made or applicable law
<br />rcquires interest to be paid. Lender shall not be required to pay Borrower any inlerest or earnings on the Funds. Lender
<br />shall give 10 Borrower, without charge, an annual accounting of Ihe 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 addilional security for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Under. together with the future monthly payments of Funds payable prior 10
<br />Ihe due dates of the escrow items, shall exceed tile amount required to pay the cscrow items when due, the excess shall be,
<br />at Borrower's option. either promptly repaid to Borrower or credited 10 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 uJlthe dcficicncy in onc or morc paymcnts as rcquircd by Lcnder.
<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 10 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 tillS Securily Instrument.
<br />3. AppHeatlon of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs land 2 shall be applied: firs!. to late charges due undcr lhe Notl:; second. to prepayment charges due under thc
<br />Note; third, to amounls payable under paragraph 2; fourth. 10 Illlcrest due; and last, to principal due.
<br />4. Charges; Liens, Borrower shall pay all laxes, assessments. charges. fines and impositions attributable to the
<br />Prorerty which may attain pflority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay Ihesc obligations in the lIlanner provided in paragraph 2, or if not paid in thaI manncr, Borrower shall
<br />pay them on time directly to the persoll owed paymen!. Borrower shall promptly furnish to Lender all nOlices of amounts
<br />to be paid under this paragraph. If Borrower makes these paymcnts directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly disc::harge any hen which has pflority over tbis Security Instrument unless Borrowcr: (a)
<br />agrees in writing to the payment of the obligation sccured by I he lien in a manner acceptable to Lender: (b} COlltests in good
<br />faith the lien by, or defends against enforcement of the lien iii, legal proceedings which in the Lender's opinion operai~ to
<br />prevenl the enforcement of the lien or forfeiture of any parr of Ihe Property; or (c) secures from the holder of the licn an
<br />agreement satisfactory to Lender subordinaling the lien to tillS Securily Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may allain priority over this Security Instrument, Lender may gIVe Borrower a
<br />notice identifying the lien. Borrower shall satisfy Ihe lien or lake 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 lhe Improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards induded within Ihe term "exlended coverage" and any other hazards for which Lcnder
<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 bc
<br />unreasonably withheld.
<br />All insurance poliCies and renewals shall be acceptable \0 Lcnder and shall include a standard mortgage clause.
<br />Lender shall have the righl 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 10 the insurance
<br />carrier and Lender. Lender may make proof of loss if nOl made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to resloration or repair
<br />of the Property damaged, If the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's sccurity would be lessened, lhe insurance proceeds shall be
<br />applied to Ibe sums secured by this Security Instrument, wheiher or not then duc, with any exccss paid 10 Borrower. If
<br />Borrower abandons the I)roperly, or docs not answer within 30 days a notice from Lender lhat the insurance carrier has
<br />offered to sellle a claim. then Lender may collect Ihe insurance proceeds. Lcnder may usc the procccds to rcpair or restorc
<br />the Properly or 10 pay sums secured by lhis Security Instrument, whelher or not then due. The 30-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower olherwise agree In writing, an)' application ofprnceeds to principal shall nol extend or
<br />postpone the due date of the mOlllhly payments referred 10 in paragraphs I and 2 or change the amount of the paymcnts. If
<br />under paragraph 19 thc Property is acquired by Lender, Borrower's right 10 any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisilion shall pass to Lender to Ihe extent of the sums secured by Ihis Securil)'
<br />Instrumcnt Immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Proper,tN; Leaseholds. Borrower shall not destroy, damage or substanllally
<br />chang!' Ihe Property, allow the I)roperly to deteriorate or commit waste. If thIS Security Inslrumelll IS on a leasehold,
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquln:s fee lille to the Properly. the leasehold and
<br />fee title shall not merge unks!> Lender agrees 10 the merger in \\Tlling.
<br />7, I)roteetlon or Lender's Rights in the Propert).; Mortgage Insurance. If Borrower fails 10 perform Ihe
<br />covel\(ul!s and agreements conlained in this Security Instrument. or there is a legal proceeding that may slgmficanlly affect
<br />Lcnder's nghts 11\ the Property (such as a proceeding III bankruptcy, probate, for condelllnatlon or 10 enforce laws or
<br />regulllllOns). Ihen Lender lIlay do and pay for whatever is necessary to protecllhe value of the Proper! y and Lendcr\ rights
<br />III the Propeny. Lender's aellons llIay IIlclude paying any sums secured by a lien which has PflOfllY over tlus Securlly
<br />Instrumenl, appearlllg in l"OUn, paymg rcasonable attorneys' fees and entcring on the Property to make rcpairs. Allhough
<br />Lcmler 1IIi1)' lakc action under this paragraph 7, Lender does not have to do so.
<br />Any all1llunts disbursed by Lender undl'r this pamgraph 7 shall become addlllonal debt of Borrowcr secured by thiS
<br />S~urlly Instrulllent. Unless Borrower and Lender agree to olher terms of payment, these amollnts ~hall bear mtere\l from
<br />the dale of dlsburSClIlelll at the Note rate and shall he payahle. With II\teresl. upon notice fwm I.ender II' Ilorn'"cr
<br />[('(Jul.-,lIn!! payment
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