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<br />UNIFORM COVENANTS. Borrower and Lender covena.nt and agree as fnllnws:
<br />1, Payment of Principal and Interest; Prepayment aod 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 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 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 Uescrow 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 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 Bnrrower 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 ofthe Funds showing credits and dehits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums s<cured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments oeFunds 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 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 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 Instrument.
<br />3, Appllcalion 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; fourth, 10 interest due; and la.t, to principal due.
<br />4, Charges; Liens, Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may altain 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 ifoot paid in that manner, Burrower shall
<br />pay them on time directly to the person owed payment. Borrowcr shall promptly furnish to Lender all notice'S of amounts
<br />10 be paid under this parograph. 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 tn the payment of the obligation secured by the lien in a manner acceptable 10 Lender; (bl contesls in good
<br />faith the lien by, or defends against enforcemenl of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcemenl of the lien or forfeilure of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security IlIstrument. If Lender determines that any part of
<br />the Property is subjcct to 0 lien which may altain priority over this Security Instrument. Lender may give Borrowcr a
<br />notice identifying Ihe lien. Borrower sholl satisfy the lien or lake one or more of the actions sel forth above within 10 days
<br />of the giving of notice.
<br />5, Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property'
<br />insured against loss by fire, hazards included within the lerm "exlended coverage" and any other hazards for which Lender
<br />re!luires insuronce, This insurance shall be maintained in the amounts and for Ihe periods that Lender requires. Thc
<br />insurance carrier providing Ihe 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 acceplable to Lcnder and shall include a standard man gage clause.
<br />Lender shall have the righl to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipls of paid premiums and renewal notices. In the evenl of loss, Borrower shall give prompl notice to the insurance
<br />carrier and Lender. Lender may make proof ofloss if not made promptly by Borrower.
<br />Unless lender and Horrower otherwise agree in writing, insurance proceeds !<thall be applied to restoration or repair
<br />of the Property damaged, if the restoration or re,,~ir is economically feasible and Lender's sec~rity is not lessened. If Ihe
<br />restorotion or repair is nol economically feasible or Lender's security would be lcssened. the 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 Ihe Propeny, or does not answer within 30 days a notice from Lender that the insurance carrier lias
<br />offered 10 settle a claim, then Lender may collect the insurance proceeds. Lender may use Ihe proceeds to repair or restore
<br />the Properly or to pay sums secured by this Security Instrument, whelher or nol then due. The 30,day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any applicotion of proceeds 10 principal shall nol extend or
<br />postpone Ihe due date 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 resulting
<br />from damage 10 the Property prior to the aequisilion shall pass to Lender to the extent of the sums secured by this Securily
<br />Inslrument immedialely prior to the acquisition.
<br />6, Preservation and Maintenance of Property; Leaseholds. Borrower shall nol destroy, damage or substant ially
<br />change the Property, allow the Propeny to deteriorate or commit wasle, If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees 10 the merger in writing.
<br />7, Proteelion of Lender's Rights In the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements cOHlained 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 bankruplcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protectlhe value of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property ({) make repairs. Although
<br />Lender may take action under Ihis paragraph 7, Lender does nol have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower socumj by this
<br />Security In~trument. Unless Borrower and Lender agree to other terms orpayment, these amount!'l shllll hcur interest from
<br />the date of disbursemenl at the N..1tc rate and shall be payable, with interest. upon nolice from Lcnder 10 Borrower
<br />requesting payment.
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