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<br />UNIFORM COVENANTS. Borrower !ond Lender covenant and agree as follows: 88_ 10 4452
<br />1. Payment of PrIncipal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and inleresl on the debl evidenced by Ihe Note and any prepayment and late charges due under the Note.
<br />2. Funds for Tues and lnaurance. Subject to applicable law OrlO 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-t~ie!fth of: (a) yearly taxes and assessments which may attain priority over this Security Instrumenl; (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 Ihe 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 institulion). 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 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 agreemenl is made or applicable law
<br />requires interest 10 be paid, Lender shall not be required to pay Borrower any inlerest or earnings on the Funds. Lender
<br />shall give 10 Borrower, withoUI charge, an annual accounling of the Funds showing credits and debits 10 the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for Ihe sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the fUlUre 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 to Borrower on monthly paymenls 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 pa)'IIIents as required by Lender.
<br />Upon payment in full of all sums secured by this Security Instrumeot. Lender shall promptly reCund 10 Borrower
<br />any Funds held by Lender. lfonder paragraph 191he 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. AppUeatloa of Paymeata. 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. 10 prepayment charges d". under Ihe
<br />Note: third, 10 amounts payable under paragraph 2: fourth, to inlerest due; and 1asl, 10 principal due.
<br />of. Charaes; Ueaa. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable 10 the
<br />Property which may attain priority. over this Security Inslrument, 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 tbe 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 promptly discharge any lien which has priority over Ibis Security Instrument unless Borrower: (a)
<br />asr- in writing to the payment of Ihe obligation secured by the lien in a manner acceptable 10 Lender; (b) conlests in good
<br />faith the lien by, or defends against cnforcement of the lien in, legal proceedings wbich in the Lender's opinion opente 10
<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 the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy th. lien or take one or more of Ihe actions sel forth above wilhin 10 days
<br />of the giving of notice.
<br />5. HuanI......I'8IICe. Borrower shall k~ the improvements now e"isting or hereafter erected on Ihe Property
<br />insured against loss by fire, hazards included within theteno "e"tended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be mainlained in the amounts and for the periods Ihat Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subjecl to Lender's approval which shall nol be
<br />unreaaonably withheld.
<br />All iosurance policies and renewal. shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender IhaII have the rishtto hold Ihe policies and renewals. If Lender requires, Borrower shall promptly give 10 Lender
<br />all m;cipll of paill premium. and renewal nOlices. In the event of loss, Borrower shall givc promPI notice 10 the insurance
<br />carrier and Lender. Lender OIly make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower olherwi.. agree in writing, insurance proceeds shall be applied to restoralion or repair
<br />of the Property damaged, if the restoralion or repair is economically feasible and Lender's securily is nol lessened. If Ihe
<br />\'CItonllion or repair i. not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the suml secured by thl. Security Instrument, 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 notice from Lender that the insulance carrier has
<br />oII'ered to seltle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds 10 repair or restore
<br />the Property or to pay sumlsecured by this Security Instrument, whether or nol then due. The 3ll-day period will begin
<br />when Ihe notice is given.
<br />Unless Lender and Borrower otherwi.. agree in writing, any applicalion of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amounl of the payments. If
<br />under (llIflI8raph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender 10 Ihe exlent of Ihe sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Presenatlon ud MalntelWlce of Proper>>'; Leaeholds, Borrower shall nol destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If Ihis Security Instrument is on a leasehold,
<br />Borrower shall comply with Ihe provisions Dfthelease, and if Borrower acquires fee litlelo the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protec:t1oa of I..eDder's Rlpta ia the Property; Mortplle 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 righls in Ihe Property (such as a ;>roceeding in bankruptcy, probate, for condemnation or 10 enforce Jaws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value ofthe Propeny and Lender's rights
<br />in the Propeny. Lender's actions may include paying any sums secured by a lien which has priorily oyer this Security
<br />Inslrument, appearing in court, paying reasonable allomeys' fees and entering on the Property 10 make repairs. Although
<br />Lender may take action under t!lis paragraph 7. Lender does nol have to do so.
<br />Any amounts disbursed by Lender under Ihis paragraph 7 shall become additional debt of Borrower secured by Ihis
<br />Security Instrument. Unless Borrower and Lender agree to other lenos of payment. these amounts shall bear inlerest from
<br />the date of disbursement al the NOle rate and shan be payable. with inleresl. upon nOlice from Lender to Borrower
<br />requesting payment.
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