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<br />8- 104836
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<br />UNIFORM COVENANts narrower ond Lender cnvcnan~Dnd agree U~ follow!.:
<br />1. Payment or Principal and Intere.t; Preplyment .nd Lote Ch.rge.. Borrower .hnll promplJl' pnl' when due
<br />the principnl ofnnd interest on rhe debt c\'idenced by the Note Dnd any prepayment Dnd lute charges due under Ihe Note.
<br />2. Funds rafTIlXeS and Insurance. Subjecllo applicable law or to n wriltcn waiver by lender, Borrower shall pay
<br />to Lender on the: day monthly payments ore due under the Note, until the Note is paid in full, a sum ("Funds") equal to
<br />onc.twcJnh of; (a) yearly U1Xes ond assessments which may attain priorit)' over this Security Instrument: (b) ycnrly
<br />leaschold payments or ground rents on the Property. if nnYi (t) yenrly hazard insurance premiums~ and Cd) yearly
<br />man gage insurance premiums. if any. These items arc: called Uescrow items." Lender may estimale the Funds due on the
<br />blti.is OreurreDt 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 thc escrow items. unless
<br />Lender pays Borrowcr interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing lhat 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, withoul charge. an annual accounting of the Funds showing credits and debits 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 secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow i1ems, shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />a1 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 the escrow items when due, Borrower shaU 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 19 the Propeny is sold or acquired by Lender, Lender shall apply, no iater
<br />than immediately prior to the sale of the Propeny or its acquisition by Lender, any Funds held by Lender at the time of
<br />application asn credit against 1he sum!'! secured by this Security lnstrumcnl.
<br />3. ApplicatiDn of Payments. Unless appHcable law provides otherwise. an pa)'ments received by Lender under
<br />paragraphs I and 2 shall be applied: first. to la1e charges due under the Note; second, 10 prepaymen1 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 5hall pay all taxes. assessments. charges, fines and impositions attributable to the
<br />Propeny which may attain priority O\'er 1his Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrowe:r shall pay these obligation!'> 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 unde:r this paragraph. If Borrower makes these paym~nts directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the: payments.
<br />Borrower shall promplly discharge Bny 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 Hen by. or defends against enforcement of the hen in, legal proceedings which in lhe Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any pan orthe 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 />nolice identifying the Hen, Borrower shall satisfy the lien or lake one or more of the actions set forlh above within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements lIOW existing or hereafter ere:cted on the Property
<br />insured against loss by fire. hazards included within the term "extended coverage" and any other hal.ards 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 10 Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance poliCies and renewals !lohall 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 re:qum:s. Borrower shaH promptly give to Lender
<br />all receipts of paid premiums and rc:ne\.\'al notices. In the evenl of Jos!'!, Borrower shall give prompt notice 10 the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or re:pair
<br />of the Propeny damaged, if Ihe restora1ion or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically fClSible or Lender's security would be lessened, Il,~ insurance proceeds shall be
<br />applied to the sums secured by 1his Security Instrument, whether or nol then due, with Lln}' excess paid to Borrower. If
<br />Borrower abandons the Propeny, or does nor answer within 30 days LI notice from Lender thai Ihe insurance carrier has
<br />offered to senle a claim. then le:nder may collect Ihe insurance proceeds. Lender may use Ihe proceeds to repair or restore
<br />the Propeny or to pay sums secured by this Securiry [ns1rument, whether or not then due, The 3D-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree In writing. any appllcatlon of proceeds 10 principal shall nol extend or
<br />postpone the due date of the monlhly payments referred 10 in paragraphs. 1 and 1 or change the amount oflhe payments. ]f
<br />under paragraph 19 the Property is acquired by Lender. Borrower's right 10 Iln)' IIlsurancc: poliCies and proceeds res.uhing
<br />from damage to the Propeny prior (0 the acquisition shall pass 10 Lender to the extent of the sums secured by Ihis Security
<br />Instrument immediately prior 10 the acquisition.
<br />6. Preservation and 1\'Iaintenance of Property; Leaseholds. Borrower shall nol deslroy, damage or !'oubstantially
<br />change the Propeny, allow the Propen)' to de1eriorale or comml1 waste. If Ihls Security lnstrumenl IS nn a leasehold,
<br />Borro\\'e:r shall comply with the provisions ufthe: lease. and if Borrowcr acquin..-s fee Iltle 10 Ihe Property. the leasehold and
<br />fee title shall not merge unless Lender agrees 10 the merger in writing.
<br />7, Protection or Lender's Rights in the Propert)..; Mortgage Insurance. If Borrower fUll", I\l perform Ihe
<br />Ctl\lenBnts and agreements contained: in this Security Instrument. or there l!o u legal pn1ceedlOg that may slgmficanlly utreel
<br />Lendcr's rights in Ihe Property (such as a proceeding in bankruptcy, probate. fl)r cOl1demnallnn elr In enforce lnw!. or
<br />rrgu1auons). then Lender may do and pay for whate\'er IS necessary 10 protect I he \ulue of the IlroperlY and Lc.-nder'!<o righl!<o
<br />In the Propen~'. lender's actions may include paying any sums. secured hy a lien whu:h hu!'l pnorn) OH~r tillS SccunlY
<br />Instrument. appearing In coun. pa);ng reasonable attorneys' f~ nnd enlenlll,! 110 Ihe Properly 10 make- rCpLllf!'l Ahhnu~h
<br />Lender may take action under 1his paragraph 7. Lender does not hB\"e 10 do 0.0
<br />Any amounts dlsbur!oCd hy lender under 1his paragraph 7 !'Ihall becnmc addtltonal delll uf HClrnm'cr ..ecured by I hi!'>
<br />Sc:.cun1)' In51ronlcII1. Lnles!l. 8orrl'",er and Lender agree to olher tern1'- nf paymcl11. the!'oc amClUllh ..hall hcar II1lere-.1 from
<br />the dale of dlsburM:1l1t:m al the Notl: ratc and "hall he: payable:. wllh "'1('r~1. UP!'it tHlth:C fwm 1 cnder In B{)trfl\\er
<br />reqUC!io1mg p3)"menl
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