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<br />101773
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />l. Payment of Principal Iiltld Interest; Prepayment Hnd Llilte Charges. Borrower shall promptly pay when due the
<br />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 Ind Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to
<br />Lender on the day monthly payments are due under the Note, until the Nott is paid in full, a sum ("Funds") equal to one.
<br />twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold
<br />payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance
<br />premiums, if any. These items are called "escrow items," Lender may estimate the Funds due on the basis of cnrrent data
<br />and reasonable estimates of future escrow items.
<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 the escrow items, Lender
<br />may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays
<br />Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in
<br />writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid.
<br />Lender shall not be required to pay Borrower any interesl or earnings on the Funds. Lender shall give to Borrower, without
<br />charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to
<br />the Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument.
<br />If the amount of the Funds held by Lender. together with the future monthly payments of Funds payable prior to the
<br />due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be, at
<br />Borrower's option. either promptly repaid to Borrower or credited on monthly payments of Funds. If the amount of the
<br />Funds held by Lender is not sufficient 10 pay the escrow items when due, Borrower shall pay to Lender any amount
<br />necessary to make up the deficiency in one or more payments as required bv Lender,
<br />Upon payment in full of all sums secured by this Security Instrument. Lender shall promptly refund to Borrower any
<br />Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than
<br />immediately prior to the sale of the Property or ils 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. AppUcation 01 Payments. 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 the
<br />Note; third, to amounts payable under paragraph 2; fourth. to interest due; and last, to principal due,
<br />4. Cbal'ln; IMns. 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. Borrower
<br />shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on
<br />time directly to the person owed payment. Borrower shall promptly furnish to Lender all nOlices of amounts to be paid under
<br />this paragraph, If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the
<br />payments.
<br />Borrower shall promptly discharge any lien which has priority over this Securily Instrument unless Borrower: (a) agrees
<br />in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith
<br />the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent
<br />the enforcement of the lien of forfeiture of any part of the Property; or (c) secures from the holder of the lien an agreement
<br />satisfactory to Lender subordinating the lien 10 this Security Instrument. If Lender determines that any part of the Property is
<br />subject to a lien which may altain priority over this Security Instrument, Lender may give Borrower a notice identifying the
<br />lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice.
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<br />5. Huard IlIIIImDce. 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 for which Lender requires
<br />insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires, The insurance carrier
<br />providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld.
<br />All 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 receipts
<br />of paid premiums and renewal nOlices. In the event of loss, Borrower shall give prompt nOlice to Ihe insurance carrier and
<br />Lender. lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of
<br />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 security would be lessened, the insurance proceeds shall be
<br />applied to the sum 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 when
<br />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 tPe amount of the payments, If
<br />under parlllraph 19 the Property is acquired by lender. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Properly prior to the acquisition shall pass to Lender to the extent of the sums s~cured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Prewrntio. alld MaJate..nce 01 Property; LeUtholds. Borrower shall not destroy, damage or substantially change
<br />the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, Borrower shall
<br />r.omply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and fee title shaH not
<br />merge unless Lender IIIrees to the merger in writing.
<br />7. Proltdloa 01 Leader', Rlahls 18 the Property: Mort.l.e Insurance. If Borrower fails to perform the covenants and
<br />.greements contained in this S<<urity Instrument, or th~re is a legal proceeding that may significantly affect lender's rights in
<br />the Property (such as a proceeding in bankruptcy. probate, for condemnation or to enforce laws or regulations), then Lender
<br />mey do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's
<br />actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court,
<br />payina reasonable attorney's fees and entering on the Property to make repairs. Although Lender may take action under this
<br />parllraph 7 Lender does not have to do so. Any amounls disbursed by Lender under this paragraph 7 shall become
<br />additlonall debt of Borrower sectlred by this Security Instrument. Unless Borrower and Lender agree 10 olher terms of
<br />payment. these amounts shall bear interest horn the dale of disbursement at the Note rail.' and shall be payable, wilh interest,
<br />uro" notke from I.ender to Borrown requesting payment.
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