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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree lIS follows:
<br />I. Pa,.eat of Priad.... ud Interest; Prepayment ud Late Charges. iJorrower shall promptly pay when due
<br />the principal of and interest on the debl evidenced by the Note and any prepayment and late charges due under the Note.
<br />%. F...... for Taxel ADd Iuurance. Subject to applicable law or to a wriuen 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 Ihis Security Instrument; (b) yearly
<br />1euehoJd payments or ground rents on lhe Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />monpae inaurancepremiums, if any. These items are called "escrow ilems." Lender may cslimate the Funds due on the
<br />basis of CIlI'reI1t data and reuonableestimates 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 apnc:y (including Lender if Lender is such an institution). Lender shall apply the Funds 10 pay the escrow ilems.
<br />Lender may not charge for holdina 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 and
<br />Lender may qree in writing tut interest shall be paid on the Funds. Unlcss an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on Ihe Funds. Lender
<br />IhaJJ Bive to Borrower, without charge, an annual accounting of the Funds showing credits and debits 10 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 />thisSccurity Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, sha11 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 lhe Funds held by Lender is nol sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary 1.0 make up the deficiency in one or more payments as required by Lender.
<br />Upon paymenl 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 Propeny 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 Ihe time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. A"'~ of Pa,....., Unless applicable law provides otherwise. all payments received by Lender under
<br />paragraphs 1 and 2 shall be applied: first. to late charges due under Ihe Note; second. to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, 10 interest due; and lasl, to principal due.
<br />4. CIIaqea; u-. Borrower shall pay all taxes, assessments, chargcs, lincs and impositions attributable to the
<br />Property wbic:h 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 that manner, Borrower shall
<br />pay them on time ~y to the penon owed paymenL Borrower shall promptly furnish 10 Lender all nOlices of amounts
<br />to be paid under tbis paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencinS the payments.
<br />Borrower IhaJJ promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />&peel in writinS to the payment of the obliption secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, ordeiencb apinst enforcemenl 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 pan of the Propeny; or (c) secures from Ihe holder oflhe lien an
<br />qreementsatisfactory to Lender subordinating the lien 10 this Security Instrument. If Lender delermines that any pan of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifyins the lien. Borrower shall satisfy the lien or take one or more of the actions set fonh above within 10 days
<br />of the BivinS of notice.
<br />5. Huard~. Borrower shall keep the improvements now existing or hereafter erected on the Propeny
<br />illlllnld apinst loss by lire. hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requites insurance. This insurance shall be maintained in the amounts and for the periods that Lender requircs. The
<br />illlW'lUlCC carrier providins the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />IIIII'C':8I088bly withheld.
<br />AU insurance policies and renewals shall be acceptable to Lender and shall include a standard monNe cJ..use.
<br />Leader abaII have the right to hold the policies and renewals. If Lender requires, Borrower shaJI promptly give 10 Lender
<br />aJI receipts of paid premiums and renewal notices. In the event of loss. Borrower shall give prompl notice to the insurance
<br />carrier and Lender. Lender may make proof oflosa if not made promptly by Borrower.
<br />UnJeas Lender and Borrower olherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaaed. if the restoration or repair is economically feasible and Lender's securily is nOllessened. If the
<br />restoraIion or repair is not economica11y feasible or Lender's security would be lessened, the insurance pnx:eeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not Ihen due. with any excess paid to Borrower. If
<br />Borrower abandons the Propeny, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to IcltIe 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 Ihen due. The JO.day period will begin
<br />wilen the notice is Biven.
<br />Unless Lender and Borrower otherwise agree in writin&, any application of proceeds to principal shall nol extend or
<br />poIlpoOe !be due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under parapaph 191he Property is acquired by Lend,er. Borrower.s right to any insurance policics and proceeds resulting
<br />from damqe 10 the Property prior to Ihe acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />IDIlrwnenl immediately prior to the acquisition.
<br />6. Pr_.au.. MIl MaillteIIaDee of Protler1r. LeaeIIoIda. Borrower shall not dcstroy. damage or substantially
<br />chanae the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower IIhaJJ comply with the provisions of the lease. and if Borrower acquires fee title to the Propeny, the leasehold and
<br />fee title sha11 not merge unless Lender agrees to the meraer in writing.
<br />'7. ProtectllNl at LeMer'. RJpts In lIIe Property; MorltIaIe luuruce, If Borrower fails to perfoml the
<br />c:cweunts and agm:menb contained in this Security Instrument, or there is a legal procecdin.that may significantly aKect
<br />Lender', riahb in the Property (such u a proceeding in bankruptcy, probate, for condemnallon or to enforce laws or
<br />repJations), then Lender may do and pay for whatever is necessary to protect the value or the Propeny and Lender's rights
<br />in the Property. Lender., actions may include paying any sums secured by a lien which ha. prionty over this Security
<br />Instrwnent. a~ in coon, payilll reasonable anorneys' fees and entering on the Propeny 10 make repain, Allhough
<br />Lender may take action under this paragraph 7, Lender does not have to do so,
<br />Any amounts dilbuncd by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />kurity lllllrument. Unless BorrowcT and Lender a.ree to other terms of payment. thee amounu shall bear interest from
<br />the dale of diabunanent at the Note rate and shan be payable. with inrere!:t. upon nonce from Lender 10 Borrower
<br />requestinl payment.
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<br />88- 102268
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