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<br />UNIFORM COVENANTS. Borrower and Lender covenanland agree as follows:
<br />I, Payment of Prlnc:1pal 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 Insuranc;!, 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, un Iii 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 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 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 inlerest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing thai interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interesl to be paid, Lender shall nOI be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of Ihe Funds showing credits and debits to the Funds and Ihe
<br />purpose for which each debit 10 the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrument.
<br />If the amounl 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 />al Borrower's option, eilher promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is nOI sufficienlto pay the escrow items when due, Borrower shall pay 10 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 />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender althe time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to lale charges due under the NOle; second, to prepayment charges due under Ihe
<br />Note; third, to amounts payable under paragraph 2; fourth. to interest due; and last, to principal due.
<br />4. Charges; Liens. 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 Ihem 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 promplly discharge any lien which has priority oVer this Security Instrument unless BorroWer: (a)
<br />agrees in writing to the payment oflhe obligation secured by Ihe lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends againsl 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 Ihe holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. ff Lender determines that any part of
<br />,the ProperlY is subject to a lien which may attain priority over this Securily Inslrumenl, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy Ihe lien or take one or more of the actions sel forth above wilhin 10 days
<br />of the giving of notice,
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erecled on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any olher hazards for which Lender
<br />requires insurance, This insurance shall be maintained in the amounts and for the 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 acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the righl 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 prom pi notice 10 the insurance
<br />carrier and Lender. Lender may make proof ofloss ifnot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied 10 restoration or repair
<br />of Ihe Property damaged, if the restoration or repair is economically feasible and Lender's securily is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's securily would be lessened, the insurance proceeds shall be
<br />applied to Ihe sums secured by this Security Instrumenl, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a nOlice from Lender Ihat the insurance carrier has
<br />offered to seule a claim, Ihen Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Se<:urity Instrument, whether or not then due. The 3O-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 not extend or
<br />poslpone the due date of the monthly paymenls referred to in paragraphs I and 2 or change the amount of the paymen:., If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the ProperlY prior to the acquisition shall pass to Lender to the extent oflhe sums secured by this Secunty
<br />Instrument immediately prior to 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 waste, If this Security Instrument is on a leasehold,
<br />Borrower shall comply with Ihe provisions of the lease, and if Borrower acquires fee tit Ie to the Propert y. the least'hold and
<br />fee litle shall not merge unless Lender agrees to Ihe merger in writing.
<br />7. Protection of Lender's Rights in the Propert}.; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly affect
<br />Lender's rights in the 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', rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priorilY over this Security
<br />Instrumenl, appearing in court, paying reasonable altorneys' fees and entering on the Property 10 make repalrs, Allhough
<br />Lender may take action under Ihis paragraph 7, Lender does not have to do so,
<br />Any amounts disbursed by Lender under this paragraph 7 sl;all become additional debt of Borrower secured by Ih"
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment. these amounts shall bear IDlereS! from
<br />the date of disbursement at the Note rate and shall be payable, with interesl. upon notIce from Lender III Bnrmwer
<br />requesting paymenL
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<br />88- 104359
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