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<br />UNIFORM COVENANTS, Borrower and Lender covenant and agree as follows:
<br />I. Payment of Princ:lpal and 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 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 paid in full, a sum ("Funds") equal to
<br />one-twelfth of: (a) yearly taxes and assessments which may altain priority over Ihis 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 Ihe
<br />basis of current data l!nd reasonable estimales 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 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 10 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 interesl to be paid, Lender shall not be required to pay Borrower any inlerest 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 arc pledged as additional securilY for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the fUlure monthly payments of Funds payable prior to
<br />the due dates oflhe 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 crediled to Borrower on monthly payments of Funds, If the
<br />amount ofthe Funds held by Lender is not sufficient 10 pay the escrow items when due. Borrower shall pay 10 Lender any
<br />amount necessary to make up the deficiency in one or more paymenls as required by Lender.
<br />Upon payment in full of all sums secured by Ihis Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 Ihe Properly is sold or acquired by Lender, Lender shall apply, no laler
<br />than immedialely prior to the sale of the Property or ils al'quisition by Lender. any Funds held by Lender at the time of
<br />application as a credit against Ihe sums secured by this Security Inslrument.
<br />J. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: firsl. 10 late charges due under Ihe Note; second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interesl due; and lasl, to principal due,
<br />4. Charges; Uens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable 10 Ihe
<br />Property which may allain priority over this Security Instrument, and leasehold payments or ground rents. if an)',
<br />Borrower shall pay these obligations in Ihe manner provided in paragraph 2. or if not paid in Ihat 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 Ihese 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 Securuy Inslrumenl unk'Ss Borrower: (a)
<br />agrees 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 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 part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien 10 lhis Securily Inslrument. If Lender detennines that any part of
<br />the Property is subject to a lien which may altain priorlly 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 set forth above within 10 days
<br />of the giving of notice.
<br />5. Huard Itmlnmce. Borrower shall keep lhe improvemenls now ellistmg (Ir hen:aflcr erected on Ihe Propeny
<br />insured against loss by fire, hazards included within the tenn "extended cO\'erage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for Ihe periods that Lender requires, The
<br />insurance carrier providing the insurance shall be chO!iCn by Borrower subject to Lender'~ appro"al \\o'hlch shall not be
<br />unreasonably withheld.
<br />All insurance policics and renewals shall be acceplable to Lender and shall include a standard morlgage c1au!>C.
<br />Lender shall have the right to hold the policlcs and renewals, If Lender requires. Borrower shall promplly gh'e to Lender
<br />all receipts of paid premiums and renewal notices, In the event ofl()!,s, Borrower shall give prompl notice 10 Ihe insurance
<br />carrier and Lender. Lender may make proof of loss if nOI made promptly by Borrower,
<br />Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied 10 restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's securuy is nOI lessened, If the
<br />restoration or repair is nOI economically feasible or under's security would be les!oefled, the insurance proceeds shall be
<br />applied to the sums secured by this Security Inslrument, whelher or not then due, with any ellcess paid to Borrower. If
<br />Borrower abandons Ihe Property. or does not answer within 30 days a nolice from Lender Ihat Ihe insurance carrier has
<br />oil'ered to settle a claim. Ihen Lender mal' collect the insurance proceeds. Lender may use the proceeds to repair or reslore
<br />the Property or to pay sums secured by Ihis Security Instrument, whether or nOI then due. The 30-day peri,1tJ will begin
<br />when the notice is given.
<br />UnlC5s Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall nOl eXlend or
<br />postpone the due date oftlte monthly payments referred to in paragraphs I and 2 or change the amount of the paymenls, If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's righllO any insurance policies and proceeds resuhmg
<br />from damage to the Property prior to the acquisition shall pass 10 Lender 10 the elltenl oflhe sums secured h) Ih" SeCUnl)
<br />Inst rument immediately prior to the acquisition,
<br />6. PreHn.tfon and Maintenance or Property; Leueholds. Borrower shall nol destroy. damage or substanllall)
<br />change the Property, allow the Property to deteriorate or commit waSle, If Ihis Sel'uri!)' Instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquirl'S fee tille I01he Proper!)'. the leasehold and
<br />fee title shall not merge unless Lender agrees 10 the merger In wruing,
<br />7. Protection IIf Lendfr'. Right. in the Property; MortRlllle Insurance. If Uorrower falls 10 perf,'rm Ihe
<br />covenants and agrec:ments contained illlhis Security Instrument. or there is a leglll proceeding Ihat ma)' slgnilkanth affcct
<br />Lender's rightl in the Property (such as a proceeding in bankruplc)'. probah~. for condel1tllalion or to enforce law, "I'
<br />regulations), then Lender may do and pay for whatever is necessary 10 pro!c<'t 1 he ,'alue of Ihe ProllCrty IInd Lender', nghl'
<br />in the Property, l.ender's actions may include paying any slims secur~-d hy a lien which Ita, pnoril) "'cr lhl' SC<'ltrlly
<br />Instrument. appearing in court, paying reasonable atlorneys' fees and enlenll!! onlhe Property I" make 1".1"11.... Ahhou!!h
<br />Lender may take action under this paragraph 7, l.ender does not ha\'e to do "'-,,
<br />Any :llTlOunls dlsbuned by Lender under this paragraph 7 shall become addiliol1nl dehtl,f 1l0rf<l\\'l'r "','ured hy Ihl'
<br />Security Instrumelll, Unless IJorrower and Lender agree to olher term, ofpn)'rnenl. rhl...e nl11\111 ",lullI heM 1111'.1'....' from
<br />the dale of disbursement al the Nole rale and .halll1e payahle. wllh mten'" , 111'''11 11\1li.'r om Lendcr II' n"rll,\\','t
<br />requesling payment,
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<br />88-103827
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