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<br />UNIFORM COVENANTS, Borrower and Lender covenant and agree as follows: 88- 1 n 4 058
<br />I, Payment of Principal and Interest; Prepayment and Late Chargils, Borrower shall promptlY pay when due
<br />the principal of and interest on the debt evidellced by the Note and any prepayment and late charges due under the Note,
<br />2. Funds for Taxes and Insurance. Subjeclto applicable law or to a wriuen 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 auain priority over this Security Instrumenl; (b) yearly
<br />leasehold payments or ground rents on Ihe Property, if any; (c) yearly hazard insurance premiums; and (d) ycarly
<br />mortgage insurance premiums, if any. These items arc called "escrow items," Lender may eslimatc 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 Ihe 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 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 crcdits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made, The Funds arc pledged as additional security for the sums secured by
<br />this Security Instrumenl,
<br />If the amount oflhe Funds held by lenGer, togethcr with the future monthly payments of Funds payable prior 10
<br />the due dates of the escrow ilems, shall exceed the amount required to pay lhe escrow items when due, the ellCCSS shall be,
<br />at Borrower', oplion, 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 10 pay the escrow items whcn due, Borrower shall pay 10 Lender any
<br />amount nec~Sllry to makc up the deficiency in one or morc payments as required by Lendcr,
<br />Upon paymenl in full of all sums secured by this Security Inslrument, Lender shall promptly refund to Borrowcr
<br />any Funds held by Lender. Ifunder paragraph 191he Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately pnor to Ihe sale of the Property or its acquisition by Lender, any Funds held by Lendcr at lhc time of
<br />application as a credit againstlhe sums secured by lhis Security Instrumenl,
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments reccived by Lcndcr under
<br />paragraphs I and 2 shall be applied: firsl, to late charges due undcr the Note; second. to prepaymenl chargcs due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to inlerest due; and lasl, to principal due,
<br />4, Chlll'llft; Uens. Borrower shall pay alltalles, assessments, chargcs, fines and impositions auributable to lhe
<br />Property which may allain priority over this Security Instrument, and leasehold paymcnls or ground rents, if any,
<br />Borrower shall pay Ihese obligations lit Ihe manner provided in paragraph 2, or if not paid in lhal manner. Borrower shall
<br />pay thcm on time dlrcctly 10 thc perron owed payment. Borrower shall promptly furnish to Lender all noticcs of amounts
<br />to be paid under this paragraph, If Borrower makes thcse payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidenCing Ihe paymcnts.
<br />Borrowcr shall promplly dlschargc any Iicn which has priority over this Security Instrumcnl unless Borrower: (a)
<br />agrccs in writing lolhe paymcnt of the obligatIOn secured by the lien in a manner acceptable to Lcnder; (b)contcsts in good
<br />faith the lien by, or defends against enforcement of lhe lien in, legal proceeQings which in the lender's opinion operate to
<br />prevent the enforccmenl of Ihe lien or forfeiture of any part of the Property; or (e) secures from the holdcr of Ihe lien an
<br />agreement satisfaclllry to Lendcr subordmating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subjecl 10 a lien which may allain pnoruy over this SccurilY Instrumcnl. Lendcr may give Borrower a
<br />notice identirying the licn, Ilorrowcr shall satisfy thc lien or lakc one or more of the actions set forth abovc within 10 days
<br />of Ihe giving of noticc,
<br />5. Hazard Insurance. Borrower shall kecp thc improvements now existing or herellfler erL'Cted on Ihe ProperlY
<br />insured against loss by fire. hazards included within the term "extended coverage" and any othcr ha7.ards for which Lender
<br />requires insurance, ThiS IItsurance shall be maintained in the amounts and for Ihe periods lhal Lender requires, Thc
<br />insurance carrier providing the insurance shall be chosen by Borrower subject 10 Lender's approval which shall nOl be
<br />unreasonably withheld,
<br />All insurance poh~lcs and renewals shall be acceplablc to Lendcr and shallmcludc a standard mortgage dausc,
<br />Lender shall have Ihc right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal nOlices, In the event of loss, Borrower shall give prompl notice to lhe insurance
<br />carrier and Lender. Lcndcr may make proof ofloss if not made promptly by Borrower,
<br />Unlcss Lendcr and Borrower otherwise agree in writing, msurance proceeds shall be applicd to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's securlly is not Icssened. If the
<br />rcstoration or repair is not economically feasible or Lender's security would bc lesscned, lhe insurance proceeds shall be
<br />applied 10 the sums secured by this Security Instrument, whcther or not lhen due, with any excess paid to Borrower, If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lcnder that thc insuran~e carricr has
<br />offered to sellle a daim, then Lender may collect the insurance proceeds. Lender may use thc proceeds to repair or restore
<br />the Property or to pay sums secured by this Security. Inslrument, whclher or not then due, The 30-day penod will begin
<br />when the nolice is given,
<br />Unless Lender and Borrower otherwisc agree in writing, any applicalion of pro~L"Cds to prinCipal shall not eKtend or
<br />postpone thc due date oflhe monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 19the Property is acquired by Lender, Borrower's right 10 any insurance policies and proceeds rcsulting
<br />from damage 10 lhe Property prior to the acquisilion ~hall pass to Lender to the elllent of the sums secured by this SecUril)
<br />Instrument immediately prior to thc acquisilion.
<br />6, Presenation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If th.. Se~urily Inslrumelll IS on a leasehold,
<br />Borrowcr shall comply with lhe provisions oflhe leasc, and if Borrower acquircs fee title 10 the Property, the leasehold and
<br />fee tillc shall not merge unless Lender agrees to the merger in writmg,
<br />7. Proledlon or Lender's RIghlS in the Properly; Mortgage Insurance. If Borrower falls 10 perform the
<br />covenants and agrL'Cments contained in this Security Instfllmen1. or there is a Iegnl proceeding thnt may sl!!lIIfil'llntly aITl...'1
<br />Lendcr's rights in Ihe Property (such as a proceeding in bankruptcy, probate, for condemnation Ill' to enforce Inws l1r
<br />regulations), then Lender Inay do and pay for whatever is necessary Il' protecllhe ,.alue of the Property and Lender's righ"
<br />in the Property, Lender's aclions may include paying any sums secured by a hcn which has prumly (1'er tillS Security
<br />Instrument, appearing in court, paying reasonable allomeys' fees and entering on the Prnl'erty tll ma~e rcp:lITs Althml!!"
<br />Lender may lakc action under Ihis paragraph 7, Lender docs nol have to do so,
<br />Any amounts disbursed by Lender under Ihls paragraph 7 shall become addillonal debt of Dorn\\\w 'el'ured hy I hl\
<br />Security Instrument. Unless lIorrower and Lender agree to other lerms of payment, these am(1unl' ,hnll bear Inleres' frolll
<br />Ihc dalc of dl~bllnc:menl al the Note rate and shall be paynble, wilh intcrcSl, upnn nollce rrnrn l.endl'r ,<' 11.11 n1\\ <.
<br />reque.lmg paymenl.
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