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<br />UNIFORM CoVENANTS. Borrower and Lender covenant and agree as fc'!!, ,.,
<br />1. Paymeut of PriDclpal ud Interat; Prepaymeat aad Late Charges. cl,,;'" ':: ,h, :-romptly pa~ "r. c:n due
<br />the principal of and interest on the debt evidenced by the Noteandanyprepaymc:r.:'.!..: :.'t' do, /". due under In, '<Ole.
<br />Z. FuadaforTaxesllDd,1asur'llllee. Subject to applicable law or toa writl~~ v. ,1;. ':: '- ;. ,:dc:r. Borro\ion :.nall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note b pal.; 110 ft.: . .,um {"Fund;' , equal to
<br />one.twelfth of: (a) yearly taxes and assewnents which may attain priority over I i1!' Sect;,...., Instrument; (b I yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard ln~urancr premiums; and Cdl yeady
<br />mortpge insurance premiums, if any. These items are calJed "escrow items." Lender TlIay estlmate the Funds dutc on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The, Funds shall be held in 1lI1 institution the deposits or accounts of which are insured or guaranteed by a [".:;era! or
<br />state agency (includirigLender if Lender is such an institution). Lender shall apply the Funds to pay the escrc.w lIems.
<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 peimits 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 eaminss 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 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 Instrumenl. 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 />tban immediately prior to the sale of the Propeny 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. AppUcadoa of PaflllCllb. 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. QUIll; IJeas. Borrower shall pay aU taxes, assessments, charges. lines and impositions attributable to the
<br />Propeny which may attain priority. over tbis Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paiagraph 2, or if not paid in that manner, Borro..", sbaJI
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender aU 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 />Borro..", IhaJI promptly discharge any lien which hu priority over this Security Instrument unless Borrower: (a)
<br />qrea in writin. 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 Property; or (c) secures from the holder of the lien an
<br />qreement utilf'actory to Lender subordinatina the lien to this Security Instrum~t. If Lender determines that any part of
<br />the Property ilsubject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifyina the lien. Borrower shall satilfy the lien or take one or more of the actions set forth above within 10 days
<br />of the aivina ofDOtice.
<br />5. a--d r-. Borrower shall keep the improvements now ellisting or hereafter erected on the Propcny
<br />insured apinat 1011 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 thaI Lender requires. The
<br />insurance carrier providinS the insurance shall be chosen by Borrower subjecl to Lender's approval which shall not be
<br />unreaonably withheld.
<br />All inIurance poliaca and renewals sbaJI be acceptable to Lender and shall include a standard mongage clause.
<br />Lender IbaJI have the ript to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />aU receipts of pUt premiums and renewal notices. In the event of lo:;s, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of Iou ifnot made promptly by Borrower.
<br />UalcII Lender and Borrower othenrile qree in writinS, insurance proceeds shall be applied to restoration or repair
<br />of the Property "-rq'lt'd. if the restoration or repair is economicalJy feasible and Leuder's security is not lessened. If the
<br />restora1ioD or repair is not economicaJIy feasible or Lender'slecUrity would be lenened, the insurance proceeds shall be
<br />applied to the IUDlI secured by thiI Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abudons the PropertY. or does nol answer within 30 days a notice from Lender that the insurance carrier has
<br />~ to IdtIe a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay SUlftSlClCUred by this Security Instrument, whether or not then due. The 3O-day period will begin
<br />when the DOIice is liven.
<br />UnlCII Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />poIlpooc the due dat.c of the monthly payments referred to in parqraphs I and 2 or change the amount of the payments. If
<br />under parqraph J9 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damqe to the Property prior to the acquisition shall pass to Lender to the elltenl of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. PNIeI ,.... ad Mmtte.uce of.........; 't ntoltlL Borrower shall not destroy. damage or substantially
<br />chaup the Property, allow the Property to deteriorate or commit wute. If this Security lnstrument is on a leasehold,
<br />Borrower IhaII comply with the provisions of the lease. and if Borrower acquires fee tille to the Propeny, I he leasehold and
<br />fee title shall DOt IIIerF unIeu Lender qrees to the meraer in writing.
<br />'7. Preeedio.6 of ......... _ts I. the Propertr, MOI'tlPI8e 11IIlIl'aDee. If Borrower fails 10 perfonn the
<br />covenants and qreements contained in this Security Instrument. or there is a legal proceedinS that may significanlly a<<ect
<br />Lender'. ripts in the Propeny (such u a proceedinS in bankruptcy, probate. for condemnation or 10 enforce laws or
<br />repIations), then Lender may do and pay for whatever is necessary 10 protect the value of the Propeny and Lender's righu
<br />in the Property. Lender's actions may include pa)'in, any sunu Iecured by a lien which has priorily over this Securily
<br />Instrumeat. ~III in coon, payin, reasonable altomeys' fees and entering on Ihe Propeny to make repain. Althoullh
<br />Lender may tab action under this parqraph 7. Lender does notlul"e 10 do so.
<br />Any amounts disbursed by Lender under this parqraph 7 shall become lIddilionaJ debl of Borrolll'er secured by Ihis
<br />Security Instrument. UnJeg Borrower and Lender a'rft to other lenns of paymenl, these amounts shan bear inlel'6l from
<br />the date of disbursemenl al the NOle rate and shan be payable, with internl. upon nolicc from Lender 10 Borrower
<br />reqllllllinc payment.
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<br />88- 103478
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