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<br />88- 103224
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<br />UNIFORM CoVENANTS, Borrower and Lender covenant and agree as follows:
<br />I. Pa)'lllent of Principal and lateral; Prepa)'lllen~ aDd 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 />Z. Funds for Tuea and IUllfa.ll:e. 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 Notc is paid in full, a sum ("Funds") equal to
<br />one.twelfth of: (a) yearly taxes and aSsessments which may attain 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. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates offuture 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 qency (including Lender if Lender is such an iutitution). 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 BolTOwer 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, without charge. an annual accounting ofthe Funds showing credits and debits to the Fund3 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 lutrument. ,
<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 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 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 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, Lendcr shall apply, no later
<br />than immediatdy prior to the sale of the Property or its acquisition by Lender. any Funds held by Lender at the time of
<br />application II a credit against the sums secured by this Security Instrument
<br />3. Application of Pa)'lllena. UnlC5S applicablc 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. CIIarIea; Uena. Borrower shall pay all taxes, 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 obligatiou in the manner provided in paragraph 2. or if not paid in that manner, Borrower shall
<br />pay them on time directly to the penon 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 promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />Ip'CCI 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 apiut 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 pan of the Property; or (c) secures from the holder of the lien an
<br />apeement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any pan of
<br />the Property is subject to a lien which may attain priority olver this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shalll1tisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />5. Huard~. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />iuured apiutlOll by fire, hazards included within the term "extended coverage" 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 chOllCll by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />AU insurance policies and renewals Ihall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender IhaIl have the riaht to hold the policies and renewalt. If Lender requires. Borrower &hall 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 of Iou if not made promptly by Borrower.
<br />Unlesa Lender and Borrower otherwise ..ree in writing, iuunnce proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the reltontion or repair is economically feasible and Lender's security is not lessened. If the
<br />restontion or repair is not economically feuible 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 that the insurance carrier has
<br />otI'ered to settle 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 then due. The 30-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 of the monthly payments referred to in paragraphs I and :z or change the amount of the payments. If
<br />under pangnpb 19 the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to thc extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. PreaenatlOD IJIIII Malateaauce of ProperJt'; Leuebold1. Borrower shall not destroy, damage or substantially
<br />change the Property. allow the Propeny to deterionte or commit waste, If this Security Instrument is on a leasehold.
<br />Borrowersha11 comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title IhaIl not merge unless Lender....ees to the merger in writing.
<br />7. ProtecdOD of LeDder'a RfPta In the Property; Mortpge luurance. If Borrower fails to perform the
<br />covenants and asreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such lIS a proceeding in bankruptcy, probllle, for condemnation or 10 enforce laws or
<br />rqulations), then Lender may do and pall for wh!ltever is necessary to protect the value of the Property and Lender's rights
<br />in the Property, Lender'slCtiou may include paying any sums secured by a lien which hIlS priority over this Security
<br />Instrument. appearing in coun, paying reasonable auorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under this pangraph 7. Lender does not have to do so,
<br />Any amounts disbuned by Lender under this paragnph 7 shall become additional debt of Borrower secured by this
<br />SecurilY Instrument. Unle81 Borrower and Lender agree to other terms of paymenl. Ihese amounts shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable, with interesl. upon notice from Lender 10 Borrower
<br />requestin, payment.
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