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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 88- i 0346 0
<br />1. Payment of Principal and Interest; Prepayment and Late Ch8l'lles. 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. Fundi for Taxes 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 p::lid 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 agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow ilems.
<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 pennits 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 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 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 ofthe Funds held by Lender is nOI 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 b)' this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 Ihe 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 tbe time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. AppUcadoa 01 Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 sl>..811 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. CIaarpI; lJena. Borrower shall pay all taxes, assessments, charges, fines and impositions attributa"'le 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 paragraph. If Borrower makes these payments directly, Borrower shall promplly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Securily Instrument unless Borrower: (a)
<br />qrees in writing to the payment ofthe obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends apinlt 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 />qreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender detennines that any pan of
<br />tile 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 actions sel forth above within 10 days
<br />of the giving of notice.
<br />S. HuanlIIIIlIr8DCe. Borrower shall keep Ihe improvements now existing 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 insurance shall be chosen by Borrower subjecl to Lender's approval which shall not be
<br />unreasonably withheld.
<br />AU 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 evenl of loss, Borrower shall 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 otherwise agree in writing, insurance proceeds shall be applied 10 resloration or repair
<br />of the 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 nOI 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 Ihal the insurance carrier has
<br />olI'ered to lettle 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 not then due. The 3O-day period will begin
<br />when the notice il given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not exlend or
<br />postpone the due date ofthe monthly payments referred to in paragraphs 1 and 2 or change Ihe amount of Ibe payments. If
<br />under parqraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damq:e to the Property prior to the acquisition shall pass 10 Lender 10 the extent oflhe sums secured by Ihis Security
<br />Instrument immediately prior to the acquisition.
<br />6. Prelenatlon and MalDteaance of ProperJrj Leuthol" Borrower shall not destroy, damage or subslantially
<br />chanle the Property, allow the Property to deteriorate or commit waste. If this Securily Instrumenl is on a leasehold.
<br />Borrower lhall comply with the provisions oflhe lease, and if Borrower acquires fee lille to the Property. Ihe leasehold and
<br />fee title ahaU not mer.e unless Lender agrees to Ihe merger in writing.
<br />7. ProteetIo8 of Lader'a Rip.. In the Property; Mortpp Insurance. If Borrower fails to perform the
<br />covenants and a.reements conlained in Ihis Securily Instrument, or Ihere is a legal proceedinglhal may sigDlficanlly alreel
<br />Lender'I riahta in Ibe Property (such as a proceeding in bankruplcy, probale, for condemnation or 10 enforce law5 or
<br />rqulationl), then Lender may do and pay for whatever is necessary to prolecllhe value of Ihe Property and lender's "Ilhls
<br />illl the Property. Lender's actions may include paylngllny sums secured by a lien which has priority over this Securily
<br />Instrument, appearing in court, paying reasonable allomeys' fees and entering on Ihe Property 10 make repairs. Althou.h
<br />Lender may take action under this paralraph 7, lender does nOI have 10 do so.
<br />Any amounls disbuned by lender under this parallraph 7 shall become additional debl of Borrower secured by IhlS
<br />Securily Instrument. Unless Borrower and Lender allree to olher lenns of paymenl. Ihese amounls shall bear mlerest from
<br />the date of diabunemenl al Ihe NOle rale and shall be payable. wilh inleresl. upon nollee from lender 10 Borrower
<br />requealinl payrnenl.
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