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<br />S\\- 105043
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<br />UNIfORM CoVENANTS. Borrower and Lender covenant and agree as follows:
<br />I, PBJ_t of PrIncipal ...d Interest; Prepayment ...d Late Charges, Borrower shall promplly pay when due
<br />the principal of and inleresl on the debt evidenced by the NOle and any prepayment and late charges due under lhe Nole.
<br />2, FUQdI for Tues and Insurance. Subjccttoapplicable law or to a wrillen waiver by Lender. Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, untillhe Note is paid in full, a sum C"Funds") equal 10
<br />one-twelfth of: Ca) yearly taxes and assessments which may altain priority over this Security Instrument; Cb) yearly
<br />leaaehold payments or ground rents on the Property, if any; Cc) yearly hazard insurance premiums; and Cd) yearly
<br />mortp&e insurance premiums. if any. Tbese items are called "escrow ilems." Lender may estimate tbe Funds due on the
<br />basis of current data and reasonable estimales offuture escrow items.
<br />The Funds shall be beld in an inslilution Ibe deposits or accounts of which are insured or guaranlced by a federal or
<br />state agency (including Lender if Lender is such an institulion). Lender shall apply the Funds to pay the escrow ilems.
<br />Lender may nOI charge for holding and applying the Funds, analyzing the account or verifying tbe escrow ilems, unless
<br />Lender pays Borrower interest on Ibe Funds and applicable law permils Lender to make such a charge. Borrower and
<br />Lender may agree in wriling thai interesl shall be paid on Ihe 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 orthc Funds showing credits Bnd 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 tbe sums secured by
<br />this Security Instrument.
<br />!fthe amount oFlhe Funds held by Lender, logether with tbe 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 shaU be.
<br />at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount ofthe Funds held by Lender is not sullicientto pay the escrow items when duc, Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one or morc 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. !funder paragraph 19 the Property is sold or acquired by Lender, Lendershall apply, no later
<br />than immediately prior to the sale of Ihe Property or its acquisition by Lender. ony Funds held by Lender attbe lime of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Appllc:adOll or Paymeata, Unless applicable :'w provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: firsl, to late charges due under the Note; second, 10 prepayment charges due under the
<br />Note; third, 10 amounts payable under paragraph 2; fourth, 10 interest due; and last, 10 principal due.
<br />4. Cbaraes; U..... Borrower sball pay all taxes, assessments, charges. fines and imposilions attribulable 10 the
<br />Property which may auain priority. over this Security Instrument, and leasehold payments or ground rents, ii any.
<br />Borrower sball pay these obligalions in the manner provided in paragraph 2, or if not paid in lhat manner, Borrower slulJl
<br />pay them on time dircctly to lhe person owed payment. Borrower shall promptly furnish to Lender all nolices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promplly furnish '0 Lender
<br />receipts evidencing the payments.
<br />Borrower shall promplly discharge any lien which has priority over this Security Instrument unless Borrower: Ca)
<br />"8fl:CS in writing to Ihe payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends againsl enfon:ement of the lien in. legal proceedings which in Ihe Lender's opinion opera.e to
<br />prevenl the enforcemenl of the lien or forfeiture of any part of the Property; or (c) secures from tbe holder of the lien an
<br />agreanenl satisfactory to Lender subordinaling the lien to this Security Instrumenl. !f Lender determines thai any part of
<br />the Property is subjecl to a lien which may attain priority over this Security Instrumenl, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisry the lien or take one or more of the actions set forth above within 10 days
<br />of the givingofnotice.
<br />5.. Huard lDaunDce. Borrower shall keep the improvements now e.x.isting Dr hereaftcr crected on the Propeny
<br />insured againslloss by fire, hazards included wilhin Ihe term "exlended coverage" and any olher hazards for wbich Lender
<br />requin::s insurance. This insurance shall be maintained in thc amounts and for the periods that Lendcr requires. The
<br />insumnce carrier providing the insurance shall be chosen by Borrowcr subject to Lendcr's approval which shall not be
<br />unreasonably withheld.
<br />All insu....ce policies and renewals slulJl be accep'Able to Lender and ,hall include a standard mortgage clause.
<br />Lender shall have the righl to hold Ihe policies and renewals. If Lender requires, Borrower shall promplly give '0 Lender
<br />all receipts of paid premiums and renewal nolices. In Ibe evenl of loss. Borrower ,hall give prompt notice to the insurance
<br />carrier and Lender. Lender may makeproofofloss ifnot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise q;ree in wririna. insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged. if the rcstoraliOll or repair is economically feasible and Lender's securilY is nol lessened. !f the
<br />rcstorlltion or repair is not economically reasible or Lender', secu,ilY would be lessened, the insurance proc=ds shall be
<br />applied to Ihe sums secured by this Security Instrumenl, whether or nol Ihen duc, with any excess paid to Borrower. If
<br />BolT'O'Wef abandons the Property. or docs not answer within 30 days a notice from Lender that thc insurance carricr has
<br />olferal to setlle a claim, then Lender may collcctlhe insu...... proceeds. Lender may use the proceeds 10 repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whelher or not then due. The 3().day period will begin
<br />when the IKIIice is liven,
<br />UnIeu Lender and Borrower otherwise agree in writing. any application of proceeds 10 principal shall nol extend or
<br />postpone the due date Gf the monthly payments referred to in paragraphs I and 2 or change the amount of the paymenlS. If
<br />under parapapb 19 lhe Property is acquired by Lender. Borrower's right 10 any insurance policies and proceeds resulling
<br />from damqe 10 the Property prior to the _uisition sbaII pass to Lender 10 lhe extent ofthe sums secured by thIS Securi.y
<br />Instrument immediatcJy prior to thc acquisition.
<br />6, ___doa..... MaiJlleIwIee orProperJr; Lcaacbolda. Borrower shan nol dcslroy, damage or subs.an.ially
<br />change the Property, allow the Property to deteriorate or commit wasle. If this Security Instrumen. is on a leasehold,
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquires fee title to the Propeny, the leasehold and
<br />f~ title slWI not merge unless Lender agrees 10 tbe merger in writing.
<br />7. PruleeIIooo ur ........a RiPta in tile ~ Mortp&O I...uraace. If Borrower fails '0 perfonn the
<br />c:ovcnantl and q:rccmcnts contained in this Security Instrument, or there is a lepJ proceeding that m.y significantly atrccl
<br />Lender's riJbu in the Property (such as. . proc:ccdinS in bankruptcy. probate. for condemnallon or 10 enforclt laws or
<br />reaulationl), then Lender may do and pay for whatcver is necessary to protect the vaJue of the Propeny and Lender's nght!o
<br />in the Property. Lender's actions II1IIY include paying any sums secured by a Jicn which has pnonly o'ler Ihls Secunty
<br />Instrument, appearin& in coun. paying reasonablc attorneys' fees and entenng on the Propcny to mak~ rcpalrs. Although
<br />Lender may take action under this p&ralraph 7. Lender docs not halJC to do foO.
<br />Any amounlJ disbuncd by Lender under this paragraph 7 shall become additional debt of Borrower !tCCurcd by thl50
<br />Securily Instrumcnt. Unlcu Borro,..er and Lendcr agree 10 other ICnDS of payment. thC50e amount50 50hall bear mlercst from
<br />tbe: datc of dDbuncmcnt at lhe Note ratc and shall be payable. Vo'llh mlcreit, upon notice from Lendcr to Borrower
<br />_'m, plymenl
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