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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 88- 101 B 26
<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 waivcr 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") cqual to
<br />one-twelfth of: (a) yearly tax.es and assessments which may attain priority over thi~ Security Instrument; (b) yeady
<br />leasehold payments or ground rents on the Property, if any; (c) yeady hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, ifany. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates offuture cscrow 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.
<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 .md
<br />Lender may agree in writing'that interest shall be paid on the Funds. Unless an <lgreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any intcrest or earnings on the Funds. Lender
<br />shall give to Borrower, without eharge. 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 ofF~nds payable prior to
<br />the due dates of the escrow items, shall exceed the amount rcquired 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 shall pay to Lender any
<br />amount necessary to make up the deficiency in one or more 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.lfunder 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 secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charge-3 due under the Note: second, to prepa)'ment charges due under the
<br />Note; third, to amounts payable under paragraph 2: fourth, to interest due: and last, to principal due.
<br />4. Chnge5; Uens. Borrower shall pay all taxes, assessments, charges, fines and impositions altributable 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 if not paid in th:\t manller, 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 [his 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 oyer this Security Instrument unless Borrower: (a)
<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) Sl'Cures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the 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 Instrumcnt, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of Ilotice.
<br />S. Huard Insunnce. Borrower shall keep the imprO\'ements now existing or hereafter erected on lIle Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<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 appnl\'al which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a stand:ud mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall prompt Iy give to lender
<br />all receipts of paid premiums and renewal notices. In the event O(I05S, 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 applil>d to restoration or repair
<br />of the Property damaged. if the restoration or repair is economicaIiy feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lesscned, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument. whether or not then due, with any CXCesS paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender tha1 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, an)' 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 ofthc payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to all)' insllmnce polides and proceeds resulting
<br />from damage to lhe Property prior to the acquisition shall pass to lender to the eKtcnt of the sums secured by this Sccurit),
<br />Instrument immediately prior to the acquisition.
<br />6. Prnenation and l\tainteUMe of Property; l..eollSeholds. lIorrowcr shall not deslroy, damage or substantially
<br />change the Property. allow the Property to deteriorate or commit waste. If this Securit)' Instrument is on a leasehold,
<br />Borrowershall comply with the provisions of the lease, and if norrower acquires fee title to the I)mpcrt)', the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lenckr's Rights in the Propert).; MortpRe Insurance. If Borrower fails to perform the
<br />cO\lenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />under's rights in the Property (such as a proceeding in bankruptcy. probate, for l'ondemnation or to enforce laws or
<br />rcgulations), then Lender may do and pay for whatever is necessary to protect the value of the I)ropcrty and Lender's righls
<br />in the Property, Lender's actions may include paying any sums secured by a lien which has priority over this Securily
<br />Instrument. appearing in court, paying reasonable attorneys' fees and entering on the I'roperly to make repairs, Although
<br />Lender may take action under this paragraph 7. Lender dOt.'S not ha"e to do so.
<br />. Any amounts disbursed by Lender under this pafllgraph 7 shall bel'ome additional debt of Borrower sccured by this
<br />Security Instrument. UnleSs Borrower and Lender agree to other terms of payment, these amounts shall bear intl'rest from
<br />the date of disbursement at the Note rate and shall be payable, with intl'reSl, upon notice from Lemler to normwcr
<br />requesting payment.
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