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<br />UNtFORM COVENANTS, Borrower and Lender covenant and agree as follows: 88- 1 0 41.13
<br />1. Payment of PrIncipal ad Interest; Prepayment and Late Charges. Borrower shall promptly pay wten 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. Fundi for TUelud (uurance. 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 attain priority over this Security Instrument; (b) yearly
<br />I_hold payments or ground rents on the Propeny, if any; (c) yearly hazard insurance premiums; anu (d) yearly
<br />mongagc 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 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 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 security for the sums secured by
<br />this Security Instrument.
<br />Ifthe amount oflhe Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />tt.e due dates of the escrow items, shall Cllceed 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 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 immedilltely 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. ApplIcatlOD of Payments. 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; founh, to interest due; and last, to principal due.
<br />4. CIautIeI; 1Jeu. 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 person 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 promptly furnish to Lender
<br />receipts evidencing the payments,
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrumenl unless Borrower: (a)
<br />agrees 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 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 />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any pan of
<br />the Propeny is subject to a lien which may attain priority over this Securily 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 fonh above within 10 days
<br />of the giving of notice,
<br />5. Huard (1IlIlU8IICe. Borrower shall keep the improvements now existing or hereafter erected on Ihe Properly
<br />insured against loss by fire, hazards included within the lerm "exlended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods Ihat Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mongage 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 rc:Jewal nOlices. 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 />Unless Lender and Borrower otherwise agree in writing, insurance proceeds sholl be applied to restoration or repair
<br />of the Propeny damaged, if the restoration or repair is economically feasible and Lender's security is no: 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 Inslrument, whether or not then due. with any excess paid 10 Borrower. If
<br />Borrower abandons the Propeny, or does not answer within 30 days a notice from Lender that the insurance carrier bas
<br />otrered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Propeny or to pay sums secured by Ihis Security Instrument, whether or not then due. The 30-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall nOI ex lend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change Ihe amount of the payments. If
<br />under paragraph 19 the Propeny is acquired by Lender, Borrower's righllo any insurance policies and proceeds resulting
<br />from damage to the Propeny prior 10 the acquisition shall pass to Lender 10 the extent of the sums secured by Ihis Security
<br />Instrument immediately prior to the acquisition.
<br />6. PreIe"atlon and Maintenance of ProperJt'; Lcueboldl. Borrower shall nol destroy, damage or substantially
<br />change the Propeny, allow Ihe Propeny to deteriorale or commit waste, If this SecurilY Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquIres fee title to the Propeny. the leasehold and
<br />fee title shall not merge unless Lender agrees 10 the merger in writing.
<br />7. Protl!etIOII of Lender'l Rip.. In the Property; MortPlIe Inluranee. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly aft'ect
<br />Lender's rights in the Property (such as a proceeding in bankruplcy, probate, for condemnation or to enforce laws or
<br />regulalions), Ihen Lender may do and pay for whalever is necessary 10 protecllhe value Df the Propeny and Lender's rights
<br />in the Propeny, Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Inslrument, appearing in coun, paying reasonable allorneys' fees and enlering on the ProperlY to make repairs, Although
<br />Lender may take actil'm under fhis paragraph 7, Lender does not have 10 do so,
<br />Any amounts disbursed by Lender under Ihis paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Inslrument. Unless Borrower snd Lender agree 10 olher lerms of payment, these amounls shall bear interest from
<br />the date of disbursemenl al the Nole rale and shall be payable, with inleresl, upon notice from Lender to Borrower
<br />requesting payment,
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