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<br />UNIFORM COVENANTS, Borrower and Lender covenant and agree as follows: 88- 10:;) (} 0 G
<br />1. Pllyment of Prlnclplllllnd Interest; Prepayment IInd Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepaymenl and late charges due under the Note.
<br />2. Funds for Taxes and Insurllnce. Subject to applicable law or 10 a wriUen waivcr by Lender, Borrower shall pay
<br />10 Lender 011 the day mOlllhly payments are due under the Note, until the NOle is paid in full, a sum ("Funds") equal to
<br />one-lweJfth of: (a) yearly taxes and assessmenls which may auain priority over this Security [nstrui::~.,t; (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 are called "escrow items." Lender may estimate the Funds due on Ihe
<br />basis of current data 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.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower interesl on the Funds and applicable law permits Lender to make such a charge, Borrower and
<br />Lender may agree in writing t~at il1terest shall be paid on the Funds, Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any inlerest or earnings on the Funds. Lender
<br />shall give to Borrower, wilhout charge, an annual accounting of the Funds showing credits and debits' to the Funds and the
<br />purpose for which each debit 10 Ihe Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security [nstrument. ,
<br />[f 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, shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's option, eilher 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 10 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 nil sums secured by Ihis 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 t he sums secured by t his 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. 10 late charges due under the Note; second, to prepayment charges due under the
<br />Note; third, to amounls payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Chlrges; Liens. Borrower shall pay all taxes, assessments, charges. fines and impositions allributable to the
<br />Property which may auain priority over this Securily Instrument, and leasehold payments or ground rents, if any,
<br />Borrower shall pay these obligations in Ihe manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on lime direclly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under Ihis pllmgraph. If Borrowcr makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the paymcnts,
<br />Borrower shall promptly discharge any 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 aRainsl 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 Lendcr subordinating Ihe lien 10 this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may allain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien, Borrower shall satisfy thc lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />S. HllZIlrd IllJUranee. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hal.ards included within Ihe lerm "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurancc shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing Ihe insurance shall be chosen by Borrower subjecI to Lender's approval which shall not be
<br />unreasonably withheld,
<br />All insurance policies and rencwals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right 10 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 loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender, Lendcr may make proof ofloss ifnOl made promplly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damage<!, if thc restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not cconomically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to Ihe sums secured by this Security Instrument, whether or not then due. with any excess paid to Borrower. If
<br />Borrower abandons thc Property. or docs not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to seule a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or 10 pay sums secured by this Security Instrument, whether or notlhen due. The 3O-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 ex lend or
<br />postpone the due date of Ihe monthly payments referred to in paragraphs I 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 immedialely prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Proptrty 10 deteriorale or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply wilh 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 Property; Mortgage Insurllnee, If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly alfect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probalc, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and tender's rights
<br />in the ProperlY. I.ender's actions may include paying any sums secured by a lien which has priority over this St'Curily
<br />Instrument, appearing in court, paying reasonable attornc)'s' fees and entering on the Property 10 make repairs, Although
<br />Lender may take action under this paragraph 7, Lender docs not have to do 50,
<br />Any amounts disburst-d by Lendcr undcr this paragraph 7 shall become additional debt of Borrower secured hy Ihls
<br />Sccurit~ Instrument Unless Borrower and Lcnder agree to other tcrms of pay men I, these amounts shall bear intcrest from
<br />the dale of disbursement at thc Note rute and shall be payable. with inlerest, upon nohce from Lender In Borrower
<br />requesling payment.
<br />If l.ender required mortgage insurance :15 a condition of making the loan secured by this Security Illstr~mcllt,
<br />Il"rr"wer ,holll'a)' Ihe prell1l11mS required 10 maintain the insurance in effecl until such lime as the reqUlremcnt 1m Ihe
<br />""uranee termll10les 111 accordance wilh Borrower's and Lender's written agreement or applicable law
<br />fl. r.,'pt'Ction, Lender nr ii' agenl may molee rCD.'lonable entries upon and inspeellnn' of thc Properly, Lel1(kr
<br />,i.ullgl\e lI"rro"'er nolice it! the lime ofnrpriorto an inspection speCIfying relloSGnuhlc cause for the IIISpcctlO1l
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