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<br />UNIFORM COVENANTS. Borrower and Lender cQ\'enant and agree as follows: 88 - 1 01839
<br />1. Payment of Principal and Interest; Prepaym~nt 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 Seeurity 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 arc called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds ~hall 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 llnd
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicablc law
<br />requires interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lendcr
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose fOT which each debit to the Funds was made. The Funds are pledged as additional security for the sums seeured by
<br />this Security Instrument.
<br />If the amount of1he Funds held by Lender, together with the future monthly payments of Funds payablc 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 liuflicient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount m~c.essary 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. 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 b)' 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. AppIiaation of Payments. Unless applicable law provides otherwise. all payments reech.ed by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charge.I. due under the Note; second, to prcpaymcnt charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4, Charges; Liens, Borrower shall pay all taxes, 3J;.Sessments, charges, fines and impositions attributable to the
<br />Property which may attain priority. o,.er 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 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, BorroweT shall pTomptly furnish to Lender
<br />receipts e\1dencing the payments.
<br />&rrower shall promptly discharge an)' lien which has priority over 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 />prevenl the enforcement of the lien or forfeiture of any part of the Property; or (e) secures 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 owr this Securit)' Instrument, lender may give Borrower u
<br />notice identifying the lien, Borrower shall satisfy the lien or lake one or more of the actions set forth above within 10 days
<br />of the gi\ing of notice.
<br />5. Huard IDStaran<<. Borrower shall keep the improvements now existing or hereafter erectxl on the Property
<br />insured against loss by fire, hazards included within the term "extended cm'cragc" 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 approval which shall not be
<br />unreasonabIY'i\ithheld.
<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 give to Lender
<br />all rt'Ct'ipts of paid premiums and renewal notices. In the event of loss, Borrower shall give pWnlpt notice to the insurance
<br />carrier and Lender. lender may male proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower othe~1se 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 economically feasible or lender's security would be lessened, the insurance proceeds shall be
<br />applied 10 the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower aband('lOs the Property, or does not answer within 30 days a notice from Lendt:r that the insurance carrier has
<br />otrercd to settle a claim, then Lender may collect the insurance proceeds. Lender ma)' 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 gi\'en.
<br />Unless Lender and 8orrowerotherwise 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] 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 proceeds resulting
<br />from damage 10 the Property prior to the acquisition shall pass to lender to the extent of the sums secured by this Security
<br />Instrument immcdiatel)' prior to the acquisition.
<br />6. Presenation and Maintenan<< ofPrope~'; Leaseholds, Borrower shall nOI destroy, damage or substantially
<br />change the Properly, allow ehe Property eo deteriorate or commie waste. If this Securit)' Instrument is on a leasehold,
<br />Borrower shall comply with ehe pro".isions ofehe lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />frr ticle shall not merge unless Lender agrees to the merger in writing.
<br />7. PrvtedioII of ~r's Ripts in the Property; Mortgage Insurancl'. If Borrower fails to perform the
<br />connants and agreements contained in this Securit)' Instrument, or there is a legal proceeding that may signillcantly utTcct
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to cnforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protcctthe value of the Property and Lender's rights
<br />in the Propert)'. Lender's actions may include paying an)' sums secured by a lien which has priority o\'er this Sl'Curi!)'
<br />Instrument, appearing in court, paying reasonable attorne).s' fees and entering on the Property to make repairs, Although
<br />Lender may take action under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbu~ by I..ender under this paragraph 7 !Ohall become additional debt of norrower secured by this
<br />. Security Instrument. Unless Borrower and Lender agree to other lerms of payment. these amollnts shlllllkar inlere!Ot fmm
<br />the date of di!.bursc:ment at the Note r3te and shall be payable, with interC!>t, upon nOllce fmm Lender 10 BOfflW,'l'r
<br />requestina payment.
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