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<br />UNIfORM COVENANTS. Borrower and Lender covenant and agree as follows: 88__ 1 04398
<br />1. Paym~nt of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenccd 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 slim ("Funds") equal to
<br />one-twelflb of: (a) yearly ta::es and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leaschold payments or ground rcnts on the Property, if any; (c) yearly hazard insurance prcmiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due 011 the
<br />basis of current data and reasonable estimates offuturc escrow items.
<br />The Funds shall be held in an institution thc deposits or accounts of which are insured or guaranleed by a federal or
<br />state agency (including Lender if Lender is such an instilution). Lender shall apply the Funds to pay the escrow items.
<br />Lender may oN 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 mlty agree in writing that interest shall be paid on the Funds. Unlcss 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 deIiif to thc Funds was made. The Funds are pledged as additional sccurity for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, togcther with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow itcms, 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 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 anYn
<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 19the 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 at the time of
<br />application as a credit against the sums secured by this Security lustrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: lirst, 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 interest due; and last, to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, lines and impositions attributable to the
<br />Property whieh may attain priority over this Security Instrument, and leasehold payments or ground rents. if any.
<br />Borrowcr 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 Ihis 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 Instrument unless 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 thc lien to this Security Instrument. If Lender determines thaI any part of
<br />the Property is subject to a lien whieh may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy Ihe lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now exisling or hereafler erected on the Property
<br />insured against loss by lire, hazards included within the term "exlended coverage" and any other 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 the insurance shall be chosen by Borrower subject to Lender's "ppro,'al which shall nOl 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 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 ofloss, Borrower shall give prompt nOlice 10 the insurance
<br />carrier and Lender. Lender may make proof ofloss ifnot 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 restoralion or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, t he insurance proceeds shall be
<br />applied 10 the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the ProperlY, or does not ans~er within 30 days a notice from Lend~r that the insurance carrier has
<br />offered to settle a claim, then 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 Security Inslrument, whether or nOlthen due. The 30-day period wiII 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 />postponc the due Qate oflhe monthly paymenls referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulling
<br />from damsge to the Property prior to the acquisition sliall pass to Lender to the extent of the sums sccur~d by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenanee 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 the provisions oflhe lease. and if Borrower acquires fee title to the Propert)'. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform Ihe
<br />covenants and agreements conlained in this Security Instrumenl. or there is a legal proceeding that may significantly affecl
<br />Lender's rights in the Property (such as a proceeding in bankruptcy. probate. for condemnation or 10 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 righls
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priorily over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under this paragraph 7, Lender does not have 10 do so.
<br />Any amounts disbursed by Lender under t his paragraph 7 shall become addit ional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other lerros of payment. these amounts shall bear interest from
<br />. ihe date of disbursement at Ihe Note rate and shall be payable. with interest. upon nOlice from Lender to Borrower
<br />requesting payment.
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