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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Lale Charges. Borrower shall promptly pay when due
<br />the principal "f and interesl on the debt evidenced by the Nole and any prepaymenl and lale charges due under the Note.
<br />2. Funds for Taxes and InsnrllRee. 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 Nole, until the Note is paid in full. a sum ("Funds") equal 10
<br />one-twelfth of: (a) yearly taxes and assessments which may attain priorilY over this Securily Instrull'enl; (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. jf 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 institulion the deposils or accounts of which are insured or guaranteed by a federal or
<br />stale agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow ilems.
<br />Lender may not charge for holding and applying the Funds, analyzing Ihe accounl or verifying the escrow ilems. 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 Ihal interest shall be paid on Ihe Funds. Unless an agreement is made or applicable law
<br />requires interest 10 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 oflhe Funds showing credits and debits 10 Ihe Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional securilY for Ihe sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, togelher wilh 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 option, either promptly repaid to Borrower or credited 10 Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay Ihe escrow items when due. Borrower shall pay 10 Lender any
<br />amount necessary to make up the deficiency in one Of more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Security Inslrumenl, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19the Properly is sold or acquired by Lender. Lender shall apply. no later
<br />than immediately prior to the sale of the Property or its acquisilion by Lender. any Funds held by Lender atlhe time of
<br />application as a credit against the sums secured by this Securily Instrumeqt.
<br />3. Application of Paymenls. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be opplied: firsl. to late charges due under Ihe Note: second. to prepayment charges due under the
<br />Note; third, to amounts payoble under paragraph 2: fourth. to interest due; and last, to principal due.
<br />4. Charges; Liens. Borrower shall pay nlllDxes, assessments, charges. fines and impositions auribu13ble (0 tbe
<br />Properly which may attain priority over this Securily Instrument, and leasehold payments or ground rents. if any.
<br />Borrower shall pay these obligalions in the manner provided in paragraph 2. or if not paid in tbal manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all nOlices of amounts
<br />to be paid under this paragraph. If Borrower makes these paymenls directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the paymenls.
<br />Borrower shall promptly discharge any lien which has priori I)' over this Security Instrument unless Borrower. (a.)
<br />agrees in wriling to the payment of the obligalion secured by the lien in a manner acceptable to Lender; rD) contes's 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 enforcement of the lien or forfeiture of any pari of the Properly; or (c) secures from Ihe holder of the lien an
<br />agreement satisfactory to Lender subordinaling Ihe lien to Ihis Security Instrument. If Lender determines .hat any pari of
<br />the Properly is subject to a lien which may anain priority over Ihis Security Instrument, Lender may give Borrower a
<br />notice identifying Ihe lien. Borrower shall salisfy the lien or take one or more of the actions .e' forth above within 10 days
<br />ofthe giving of not ice.
<br />S. Hazard Insurance. Borrower shall keep Ihe improvements now exisling or hereafter erected on Ihe Properly
<br />insured against loss by fire, hazards included wilhin the term "extended coverage" and any other hazard. for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for Ihe periods Ihal Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subjecl to Lender's approyal which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a slllndnrd mOrlgage clause.
<br />Lender .hall hove Ihe right 10 hold the policies and ren~wal.. If Lender requires, Borrower shall promptly give 10 Lender
<br />all receipts of paid premiums and renewal notices. In the eyent of loss, Borrower shall give prompt nOlice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unles:! Lender and Bon ower otherwise agree in wriling, insurance proceeds shall be applied to resloration or repair
<br />of Ihe Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If .he
<br />restoration or repair is not economically feasible or Lender's securily would be lessened. Ihe insurance proceeds shall be
<br />applied 10 the sums secured by this Security Instrument, whether or nOllhen due, with any excess paid to Borrower. If
<br />Borrower abandons Ihe Properly, or does not answer wilhin 30 days a nOlice from Lender Ihat Ihe insurance carrier has
<br />olfered to settle a claim, then Lender may collect the insurance proceeds. Lender may use Ihe proceeds to repair or restore
<br />the Properly or 10 pay sums secured by Ihis Security Inslrument, 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 applicalion of proceeds to principal shall not extend or
<br />postpone the due date oflhe monlhly payments referred 10 in paragraphs I and 2 or change Ihe amount of the paymenls. If
<br />under paragraph 19 the Properly is aequired by Lender, Borrower's righl to any insurance policies and proceeds resulting
<br />from damage to the Property prior 10 the acquisition shall pass to Lender to the exlent of the sums secured by this Security
<br />Inslrumenl immediately prior to the acquisition.
<br />6. Preservation and Mainlenance of Property; Leaseholds. Borrower shall not destroy, damage or subslanlially
<br />change the Properly, allow Ihe Properly to deteriorate or commil waste. If this Security lnslrument is on a leasehold,
<br />Borrower shall comply with the provisions oflhe lease, and if Borrower acquires fee litle to the Properly. Ihe leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Righls in the Property; 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, probale. for condemnation or 10 enforce laws or
<br />regulations), then Lender may do and pay for whateyer is necessary 10 protect the value of the ProperlY 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 to make repairs, Allhough
<br />Lender may take aclion under this paragraph 7, Lender does not have 10 do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrunicnt. Unless Borrower and Lender agree to other terms of payment, these amoums shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
<br />requesting payment.
<br />If Lender required mortgage insurance as a condHion of making the loan secured by this Security Instrument.
<br />Borrower shall pay the premiums required to maintain the insurance in effect until such time as the requirement fOf the
<br />insurance terminates in accordance with Borrower's and Lender's written agreement or applicable Illw.
<br />8. Inspection. Lender or its agent may make reasonable entries upon and inspccliuns-of the ProperlY. Lendef
<br />shtlll give Borrower notice at th~ time of or prior to an inspection specifying reasonnble causror t he U1~~~.~t h1l1
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