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<br />UNIFORM COVENANTS, Borrower and Lender covenant and agree as follows:
<br />I. Payment of PrinclP*l ad Interest; Prepayment and 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 />2. Funds for TUell ad lnauranc:e, Subject to applicable law or to a wriUen waiver by Lender, Borrower shall pay
<br />to Lenrf~r 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 auain 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 />mongage 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 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 ror 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 pennits Lender to make such a charge, Borrower and
<br />Lender may agree in writirig that interest shall be paid on the Funds, Unless an agreement is made Ot 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 FU:lds 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 aU 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 the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. App1Icadoa of Paymen... Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: fint, 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, CIIareea; u-. 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 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 penon owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this parapaph. 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 />agrees in writinS 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 against 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 Propeny; or (c) secures from the holder of the lien an
<br />qreement satisflCtOry to Lender subordinating the lien to this Security Instrument. If Lender detennines 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 identifying the lien, Borrower shall satisfy the lien or take one or more of the IICtions set fonh above within 10 days
<br />of the givins of notice,
<br />5. Haunlluarace. Borrower shall keep the improvements now ellisting or hereafter erected on the Property
<br />insured against loss by fire. hazards included within the tenn "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 iRlurance shall be chosen by Borrower subjecl to Lender's approval which shall not be
<br />unreasonably withheld.
<br />AU insurance policies and renewals IhaII be acceptable to Lender and shall include a standard monJlll&C clause.
<br />Lender abaIl h:1ve the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receiptll 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 />Unleu Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration Dr repair
<br />of the Property dam8&ed. 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 />Bpplied to the SUIIII secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, Dr does not answer within 30 days a notice from Lender that the insurance carrier has
<br />oll'ered to IeItle a claim, then Lender may coUect the insurance proceeds, Lender may use the proceeds to repair or restore
<br />the Property or to ~y SUIIII secured by this Security Instrument, whether or not then due. The 3O-day period will begin
<br />when the notice is given.
<br />Unleu Lender and Borrower otherwi!IC agree in writing, any application of proceeds to principal shall not elltend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under parqraph 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 the elltent of Ihe sums secured by this Security
<br />Instrument immediately prior to the acquisition,
<br />6. Pre-. .Illiu.... Malatelwlce orl'roperJw; LeaseIIoldl. Borrower shall not destroy, damage Dr substantially
<br />change the Property, allow the Propeny to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquires fee title to the Propcny, the leasehold and
<br />fee title IhaII not merge unleu Lender qreea to the merler in writinS,
<br />7, ~ of LeIIder'. RlPII I. the Property; Mortpge lnaarance. If Borrower fails to perform the
<br />covenants and aar-nenll contained in this Security Instrument, or there is a legal proceeding that may significantly afreel
<br />Lender'. riahll in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />;quIatiOlll), then Lender may do and pay for whatever is necessary to protecl the value of the Propcny and Lender's rights
<br />in the Property. Lender's IICtions may include payinl any sums secured by a lien which has priority over this Security
<br />Instrument, appearins in court, paying reasonable attorneys' fees and entering on the Propcny 10 make repain, Althou.h
<br />Lender may tate IICtion under this paragraph 7, Lender does not have 10 do so,
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debl of Borrower secured by thIS
<br />Security Instrument, Unleu Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
<br />the date of disbursemenl a' the Note rale and shall be payable. with inlercsl. upon nelice from lender 10 Borrower
<br />reqUClltin. payment.
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<br />88- 103390
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