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<br />UNIFORM COVENANTS, Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debl evidenced 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 written waiver by Lender. Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note. until the Nole 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 />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 guaranleed 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 ilems. unless
<br />Lender pays Borrower inlerest on the Funds and applicable law pennits Lender 10 make such a charge. Borrower and
<br />Lender may agree in wriling Ihal 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 Ihe 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 Ihe 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 oplion, either promptly repaid to Borrower or credited to Borrower on monlhly 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 SecurilY Instrumenl, Lender shall promplly refund to Borrower
<br />any Funds held by Lender. Ifunder paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior 10 the sale of the Property or its acquisition by Lender, any Funds held by Lender at Ihe time of
<br />application as a credil against the sums secured by this Securily instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all pay men Is 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 inlerest due; and last, to principal due,
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments. charges. fines and impositions attributable to Ihe
<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 10 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 paymenl of the obligation secured by the lien in a manner acceptable to Lender; (b) conlests in good
<br />faith the lien by, or defends against enforcemenl of the lien in, legal proceedings which in the Lender's opinion operate 10
<br />prevenlthe enforcement of Ihe lien or forfeiture of any part of Ihe Property; or (c) secures from the holder of the lien an
<br />agrttment satisfactory to Lender subordinating the lien to this Security Instrument. If Lender detennines I hat any parI of
<br />the Property is subjecl 10 a lien which may attain priority over this Securily Inslrument, Lender may give Borrowcr a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of Ihe actions sel forth above wilhin 10 days
<br />of the giving of notice.
<br />S, Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erecled on Ihe ProperlY
<br />insured againsl loss by fire, hazards included within the tenn "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be mainlained in the amounts and for Ihe periods that Lender requires. The
<br />insurance carrier providing Ihe insurance shall be chosen by Borrower subjecl to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceplable 10 Lender and shall include a standard morlgage 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 event of loss, Borrower shall give prompt nolice 10 the insurance
<br />carrier and Lender. Lender may make proof of loss if nol made promplly by Borrower,
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the resloralion or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is nol economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Inslrument, whelher or not Ihen due, with any excess paid 10 Borrower, If
<br />Borrower abandons the Property, or does nOI answer wilhin 3D days a notice from Lender that Ihe insurance carrier has
<br />offered to setde a claim, then Lender may collect the insurance proceeds. Lender may use Ihe proceeds to repair or reslore
<br />the Property or to pay sums secured by this Security fnslrumelll, whelher or nol then due. The 3D-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in wriling, any application of proceeds 10 principal shall nol extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change Ihe amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right 10 any insurance policies and proceeds resulting
<br />from damage 10 the Property prior to the acquisition shall pass to Lender 10 the extent of the sums secured by this Security
<br />Instrumenl immedialely prior 10 the acquisition,
<br />6. Preservation and Maintenance of Property; Leaseholds, Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waSle, If this Security Instrument is on a leasehold,
<br />Borrower shall comply with Ihe provisions oflhe lease, and if Borrower acquires fee title to the Property,lhe leasehold and
<br />fee title shall not merge unless Lender agrees 10 the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perfonn the
<br />covenants and agreements contained in Ihis Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in Ihe Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Properly. Lender's aclions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument. appearing in court, paying reasonable allorneys' fees and entering on Ihe Property to make repairs. Although
<br />Lender may lake action under Ihis paragraph 7, Lender does not have to do so.
<br />, Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by Ihis
<br />Security Inslrument, Unless Borrower and Lender agree to other terms of pay men I. these amounts shall bear iDleresl from
<br />the date of disbursement at lhe Note rale and shall be payable, with interest. upon notice from Lender to Borrmwr
<br />requesting payment,
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<br />88- 104355
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