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<br />UNIfORM COVENANTS. Borrower and Lender covemint and agree as follows: 88- 10311 7
<br />I, Payment of PrIncipal and Interest; Prepayment and Late Cblll"Kcs, 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 TaKcs 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 talles and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground renls on the Property. if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />rnortgageinaurance premiums, if any. These items are 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 shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state asency (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 writin, 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, without 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 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 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 ellcess 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 rcquired 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 by Lender, any Funds held by Lender at the time of
<br />application asa credit against the sums secured by this Security Instrument.
<br />3. AppUeatfon of Payments. Unless applicable law provides otherwise. all payments received by Lender under
<br />paragraphs I and 2 shall be 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 interest due; and last, to principal due.
<br />4, Cbaraa; Uelll. Borrower shall pay alltalles, assessments, charges, fines and impositions attributable 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 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, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments,
<br />Borrower shall rromrtly di!ICharge any lien which has priority over this Security Instrument unless eorrower: (a)
<br />agrees in writinllO the l'Ilyment of the obligation sc:cur~ by the lien in a manner acceptable to Lender; (b) conlesls in good
<br />faith the lien by, or defends apinst cnforcement of Ihe lien in. legal proceedings which in the Lender's opinion operate 10
<br />prevent lhe enforcement ofthc lien or forfeiture of any part of the Property; or (c) secures from lhe holder oflhe lien an
<br />agreementll8tisfactory 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 altain priority over this Security Instrumenl, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall salisfy the lien or take Qne or more of the actions set fOl1h aoove within 10 days
<br />of the giving of notice.
<br />S. Huard 11II1II'aIIce. Borrower shall keer the improvements now existing or hereaftcr erected on the Propeny
<br />insured against loss by fire, hazards included within the term "elltended coveragc" 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 />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<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 and renewal notices, In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof ofloss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of lhe 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 to the sums secured by this Security Instrument. whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender thai the insurance carrier ha.~
<br />otrered to settle 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 !lr not then 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 extend or
<br />postpone the due date ofthe monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under parasraph 19 the Property is acquired by Le~der, Borrower's right to any insurance relicies and proceeds roultinl!:
<br />from damage to the Property prior to the acquisition shall pass to Lender to the elltent of the sums secured by this Security
<br />Inltrument immediately prior to the acquisition.
<br />6. Presenatlon and MaJntelWlce of ProperJ&'; Leaseholds. Borrower shall not destroy. damage or sub!.tantially
<br />change the Property, allow the Property to deteriorate or commit wa.,te. If this Security Instrument is on a lea!lChold,
<br />Borrowcrshall comply with the provisions of the lease. and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unlcuLender agrees to the merger in writing.
<br />7. Pmtectloa of Leader'. Riahh In the Property; MortPle Inlurance, If Borrower fails to perform lhe
<br />covenants and Ilrec:rnents contained in this Security Instrument, or there is a legal rroceeding thlll may significantly .trect
<br />Lender's ri,btl in the Property (such as a proceedins in bankruplcy, probate, for condemmllion or to enforce la,.,'s or
<br />rqulatiolll). then Lender may do and pay for whatever is neceasary to protect the value of I he Property and Lender's rights
<br />in lhe Property. Lender's actions may include paying any lums secured by a lien which has priorit)' o\'er this Security
<br />tllllrumetll. appearin. in ,'Oun. payina reasonable attorneys' fees and entering olltbe "rorert)' to make repairs, ^llhough
<br />Lendcrmay take action un'" thisparaarar'" 7. Lender does nol ha\'e to do so,
<br />Any amounts disbursed by Lender under this paragrarh 7 shall become additional debt of Borrower 'ia:urcd by IhlS
<br />Security Inttrument. Unlcu Borroll/er IInd Lender IIgree to other terms of rayment. I he5C: amounls shall hear ;l1te~t fmrn
<br />the dale of ditburlCf11cnt al the N()h~ rate RIlt! ~hall be payable. with inlerest, upon notice from tender h' llorrnwcr
<br />reqUelCin. ra~'menl.
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