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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agrcc as follows:
<br />J. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interciit 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 undcr thc Note, uiltillhe Notc is paid in full, a sum ("Funds") equal to
<br />one-twelfth of: (n) yearly taxes and assessments which may attain priority over this Security Il1struJl1ent; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiuTns; 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 items.
<br />The Funds shall bc 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 the escrow items.
<br />Lender may not charge for holding and applying thc Funds, analyzing the account 01' verifying the escrow items, unless
<br />Lender payS: Horrower interesJ on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shali be paid on the Funds. Unless an agreement is made or applicable law
<br />requires intcrest to be paid, Lender shall not be required to pay Borrower 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 10 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 fo~unds payable prior to
<br />the due dates of the escrow items, shall exceed the amount requjred 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 to pay the escrow items when due, Borrower shaH pay to Lender any
<br />amount necessary to make up the dcficiency in one or more payments as required by Lender.
<br />Upon paymem 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 Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums securcd by this Security Instrument.
<br />3, Application of Paym~nts, Unless applicable law provides 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 thc
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charge1i; Utns, Horrower 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 PHY these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them en 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 promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to thc paymenl of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends ugainst 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 Lcnder subordinating thc 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 give Horrower a
<br />notice identifying the lien. Horrower shall satisfy the lien or take one or more of the actions set forth above within to days
<br />of the giving of notice.
<br />5. Huard Insurance, Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, ha1.ards included within the term "exterided coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall ~ maintained in the amounts and for Ihe periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lendcr's approval 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 hllve 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)oss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof ofloss ifnot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration 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 t.'\:ollomically 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 carrier has
<br />offered 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.
<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 paymcnts. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to t he extent of the sums !.ecured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Presenation and Maintenance of Property; Leasebolds, Horrower shall not destroy, damage or substanlially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall c.emply 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 Properly; Mortgage Insuranc.~. If Borrower fails to perform the
<br />covenants and :agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's right!; in the Property (such as a proceeding in bankruptcy, probatc, for condemnation or to enforce laws or
<br />reguhlltioTis), then Lender may do and pay for whate\'er is necessary to protect the value orlhe Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Sccurity
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entcring on the Property to make repairs. Although
<br />lendet may take action under this paragraph 7, Lender does 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 />~urity In."trurnelll. Ulll($s Horrowcr and Lender agree to other terms of payment, these amounts shall bear inlerest f[('1ll
<br />the date of dilobursem('lIt at the Note rate and shall be payable, with interest, upon notice frolll Lcndcr to B\)rrower
<br />requC'itina payment.
<br />If Lcndcrrcquircd J)wrtgage lnsurunce as a condition of making the loan secured by this Sccurity Inslrllll1l'JlI.
<br />UOr'rowcr ~hllll pay the prtmiufUsrC(IUircd to maintain the insurance in elTect until such liml' as the rl'<juin:Jlll'1l1 for lhe
<br />imurufI(;C' lerminall:, in nn:ordunce with Bor rowcr\ al\d I.ender';, wriUen agrcemdll or applkablc law
<br />8, ",,,",Ion, I.l'lHli:r or il!!. agent may make rClISOIIl\ble entries upon an111IlSpl'\'1I0nS of lilt' Prop!.'lty Il"\lk,
<br />\tlltll gi\.C' HOt roWer notke III t he lime ()f or prior to un in!ipectioll srecifyil1l? rcn...onnblc t'lHIW for the IIl...pt....( II III
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<br />88- 101636
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