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<br />UI'JI!"ORM COVENANTS. Borrower and Lender covenant and agree as follows:
<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 Ihe Note and any prepayment and late charges due under the Note.
<br />Z. Funds for Tuesand Insurance. Subject to applicable law or 10 a wrillen waiver by Lender, Borrower shall pay
<br />'.0 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 allain priority over this Security 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. The!:e items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow item..
<br />The Funds shall be held in an institution the deposils 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 and
<br />Lender may agree in writing that interest 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 interest or earnings on the Funds. Lender
<br />shall give to Borrower. withoul charge, 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 sccurity for the sums secured by
<br />this Seeurity Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior '.0
<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 sufficienl to pay the escrow ilems 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 refllnclto 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 !o the sale of the Property or liS acquisition by Lender, any Funds held by Lender at tJ~e time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />J. AppJlcatioa of Payments. Unless applicable law provides otherwise. all payments received by Lender under
<br />paragraphs I and 2 shall u 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 mlerest due; and last. to principal due.
<br />4. CIaarIes; Lieu. Borrower shall pay all taxes, assessments, charges, fines and impositions anributable to the
<br />Properly wh..:h may attam prionty over this Secunty 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 perwn owed payment. Borrower shall promptly furnish 10 Lender all notices of amounts
<br />to be paid under thiS paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish 10 Lender
<br />receipts evidencmg the payments.
<br />Borrower shall promptly discharge any lien which has priority over thiS Security Instrument unless Borrower: (a)
<br />agrees in writmg to Ihe payment of Ihe obligal.ion secured by the lien In a manner acceptable to Lender; (b) COntcsts in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedin~ which in the Lender's opinion operate to
<br />prevent the enforcemenl of the lien or forfeiture of any pan of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory 10 Lender subordinating Ihe lien to thiS Seeunty Instrument. If Lender determines that any part of
<br />the Property is subjecl to a lien which may aualn pnonty over this Security Instrument. Lender may give Borrower a
<br />noUce identifying the lien. Borrower shall satisfy the lien or take one or more of t"e actions sct forth above within 10 days
<br />of the givinl of notice.
<br />5. HuanlllII1InJICC. Borrower shall keep Ihe Improvements now eXisting or hereafter erected on the Property
<br />insured alainst loss by lire. hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be malnlained m 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 />unreasonably withheld.
<br />All Insurance poliCIes and renewals shall be acceplable to Lender and shall include a standard mortgage clausc.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires. Borrower shall promptly give to Lender
<br />all receipts of paid premiums llnd renewal notices. In the event of loss, Borrower slull give prompt notice to the insurance
<br />carrier and Lender, Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwlsc agree ID wntmg, msurance proceeds shall be applied to restoration or repair
<br />of the Property damaged. if Ihe restoration or repaJr IS economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's securily would be lessened, the insurance proceeds shaJ: be
<br />applied to the sums secured by this Seeunty Instrumenl, whether or not then due, with any ellcess 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 />olfert'd to settle a claIm, then Lender may cullect the Insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Seeunty Instrument, whether or nOI then due. The 3O-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwisc agree ID wriung. any application of proceeds to prinCIpal shall not e~tend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change Ihe amounl of the payments. If
<br />under paraJl'aph 19 the Propeny IS acquired by Lender, Borrower's nghtto any Insurance poliCIes and proceeds resulting
<br />from damage to the Properly prior 10 Ihe acquisllion shall pass 10 Lender 10 Ihe elltenl oflhe sums secured by thiS Security
<br />Instrument immediately prior to the acqUISItion.
<br />6, PreH"atiOll and MaIntenance ofPropertW; Leueholds. Borrower shall not deSlroy, damage or substanllally
<br />change the Property, allow the Property to deteriorate or commil waste. If Ihls Secunty Instrumenl IS on a leasehold.
<br />Bonower shall comply with the provisions of the lease. and if Borrower acquIres fee tllle 10 Ihe Properly. the leasehold and
<br />fee title ,hall not merge unless Lender agrees to the merger m writing.
<br />7. ProttdiOll of Lender's Rlpts in tilt Property; Mortpllc Insuranrr. If Borrower fails 10 perform Ihe
<br />covenants and agreements contained in thi~ Security Instrument. or Ihere" a legal proceeding that may slgmficantly alfecl
<br />Lender', riBhts 10 the Property (such as a proceedmg m bankruptcy, probale. for condemnallon or to enforce laws or
<br />fe,ulattons). then Lender may do and pay for whatcvcr IS necessary 10 protcct 1 he ~alue of the Property' and Lender's nghts
<br />IiIlhr Property. Lender's actions may mcludc paying any sums secured by a hen whIch has pnonly (wcr this Seeunty
<br />Instrument, appearing 10 court, paymg reasonable a\lomeys' fees and enlenng on the Property 10 make repaIrs Allhough
<br />Lender may take aClion under this paragraph 7. Lender does nOI have 10 do so
<br />Any IImount. dlsbursrd by Lender under Ihls paJ'B(lraph 7 shall become addllJonal debt of Borrower secured by thiS
<br />Sn:unty Instrumenl Unlns Borrower and Lender agree III other terms of paymenl. lhese amollnts shall bear IIIltrest from
<br />the dale of d.,bursrmenl al the Note rale and ~hall be payable. with mleres!, upon nOllce from l.ender 10 Oorrower
<br />requelllnl plly~t
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<br />102892
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