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<br />UNIFORM COVENANTS, ilorrower and Lendercovenanland agree as rollows:
<br />I. Pay.cal of PrIllClpaland Interat; Prepa)'lllenl and Late Cha,g... Borrower shall promptly pay when due
<br />the principal orand inlerest on Ihe deblevidenced by Ibe Nole and any prepayment and laic charges due under the Note,
<br />Z. Fn... f",. Toe..nd IlllUrance, Subjeclloapplicable law or to a written waiver by Lender, Borrowe, shall pay
<br />10 Lender on the day monlhly payments are due under the Note, unlilthe Note is paid in full, a sum ("Funds") equal 10
<br />one-twemh of: (a) yearly lUes and assessments which may altain priarily over Ihis Security Instrument; (b) yearly
<br />I......old payments or ground rents on Ihe Propeny, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortpac insurance premiums, if any. These items are called IIcscrow 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 beld in an instilution the deposits or accounts or which arc insured or guaranleed by a federal or
<br />Slate agency (including Lender if Lender is such an institution), Lender shall apply Ihe Funds 10 pay Ihe escrow items,
<br />Lender may not charge for holding and applying the Funds, analyzing the accounl or verifyinglhe escrow items, unless
<br />Lender pays Borrower inlerest on the Funds and applicable law permits Lender 10 make such a charge. Borrower and
<br />Lender may agree in writing that inleresl shall be paid on tbe Funds, Unless an agreemenl 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 BoJTOWCf, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit 10 the Funds was made. The Funds are pledged as additional securily far the sums secured by
<br />this Security Instrumenl.
<br />If the amounl of the Funds held by Lender, togelher with the future monthly payments of Funds payable prio, 10
<br />the due dates or 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 />amounl oflhe Funds held by Lender i. nol sullicientto pay the escrow items when due, Borrow~r 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 sball promptly refund 10 Borrower
<br />any Funds held by Lende" If under paragraph 19 the Propeny Is sold or acquired by Lende" Lendershall apply, no laler
<br />than immediately prior 10 Ihe sale oflbe Propeny or its acquisition by Lender. any Funds held by Lender allhetime of
<br />application as a credit against the sums secured by this Security Instr_'ment.
<br />3. Appllcatloa of Pa)'llleola. Unless applicable law provides otherwise, all payments recc:ived by Lender unoer
<br />paragrapbs 1 and 2 shall be applied: first, 10 late charges due under the Note, second, to prepaymenl charges due unOer Ihe
<br />Note; third, 10 amounts payable under paragraph 2; founh, to inleresl due; and last, to principal due,
<br />4. Olarges; Uena. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain 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 ifnot paid in that manner, Borrower shall
<br />pay them on time directly to Ihe person owed payment. Borrowe, shall promptly furnish to Lender all notices of amounts
<br />'0 be paid under this paragraph, If Borrower makes these payments directly, Borrower shall promptly furnish 10 Lender
<br />receipts evidencing the payments,
<br />Borrower shall promptly discharge any lien which has priority over Ihis Securily Instrumenl unless Borrower: (a)
<br />agrees in writing to the paymen, oflhe obligalion secured by Ihe lien in a manner acceptable 10 Lender; (b) conlests in good
<br />faith the lien by, or defends againsl 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 pari of the P,openy; or (c) secures from the holder of Ihe lien an
<br />agreemenl satisfactory 10 Lender subordinating the lien 10 Ihis Security Instrument. If Lender determines Ihal any pan of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice idcntiryinS the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice,
<br />5. Huard IlIIunmce. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />in.ured against loss by fire, hazards included within Ihe term "e..ended coverage" and any olher 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 approval which shall not be
<br />unreasonably withheld,
<br />All insurance policies and renewals shall be acceptable 10 Lender and shall include a standard mongage clau...
<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 nOlices, In the event of loss, Borrower shall give prompl notice 10 Ihe insurance
<br />carrier and Lender, Lender may make proof ofloss if not made promptly 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 Ihe restoration or repai' is economically feasible and Lender's securilY Is not lessened, If the
<br />restoration or repair is not cc:onomically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied 10 the sums secured by this Security Instrument, wherher or not then due, with any excess paid to Borrower, If
<br />Borrower abandons tbe PropenYl or docs not answer within 30 days a notice from Lender that tbe insutance csrrier has
<br />off'ered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or 10 pay sum. secured by Ihis Security Instrument, whether or not then due, The 3lJ.day period will begin
<br />when rhe notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due dateofthe monthly payments referred to in paragraphs 1 and 2 or change the amoun' of the payments. Jr
<br />uncler paragraph 191he Propeny is acquired by Lender, Borrower's rigbllO any insurance policies and proceeds resulting
<br />from damage to Ihe Propeny prior 10 Ihe acquisilion shall pass to Lender to the e..ent oflhe sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Prelenatlon and Maintenance ofPropel'Jll'; lkaaebol.... Borrower shall not deslroy, damage or sUbslanlially
<br />change the Property, allow the Propcrty to deteriorate or commit waste, If this Security Instrumenl is on a leasehold,
<br />Borrower shall comply with the provisions orthe lease, and irBorrower acquires fee title to the Property, the leasehold and
<br />fee title shall DOl merge unless Lender agrees to the merger in writing.
<br />7. ProtectIoa of Leader'. Rlsbllln tile Property; Mor\ple Insurance. Ir Barrowe, fail. 10 perform Ihe
<br />covenants and agreements contained in this Security Instrument, 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 to enforce laws or
<br />regulations), Ihen Lender may do and pay for whalever is necessary to protect the value ofthe Property and Lende/'s rights
<br />in Ihe Properly, Lender's actions may include paying any sums secured by a lien which has priority over Ihis Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and enlering on the Property 10 make repairs, Although
<br />Lender may take action under this paragraph 7, Lender does not hIVe to do so.
<br />Any amounts disbuned by Lender under this paragraph 1 shall become additional debt of Borrower secured by this
<br />Security Initrument. UnlCSlo Borrower and Lender agree to other terms of payment, these amounlS shall bear interest from
<br />rhe date of di5bursemcn1 at the NOle rate and shall be payable, with interest, upon notice from Lender to Borrower
<br />requestinl payment.
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<br />88_ 105033
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