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<br />UNIFDRM CO\'ENAN1S. J)orrowcrund Lcndercovennnt IInd agreC'us follow,: 88- 10508:3
<br />t. Payment or Prlnelpa1 and Inlerest; Prepayment and Lat€! ChBrRcs. Horrower shull promptly puy when due
<br />the principal of and interc:st on Ihe debl evidenced by the Note Dnd nny prepayment and lale: charges due under I he: NOle.
<br />2. I;unds for Taxes and Imurante. Subject 10 applicable low or In n wrillen waiver by Lender. norrower !thull pay
<br />to Lender on Ihe dny monthly payments lire due under Ihe NOle, umi1lhe Note i!i paid in full, II sum ("Funds") equllllo
<br />one.rwelllh of: fo) yearly laxes and DSSessmenls which may :ItIuin priorilY over lhi!<l Security Instrument: (h) yenrly
<br />leasehold payments or ground rents on lhe Proper1y, if any; (c) yenrly hazard insurance premiums; and Cd) )'curly
<br />mongllge insurance premiums, if any, These items are called Olescrow ilem!i." lender may c!ilimale the Funds due onlhe
<br />basis of curren I dalD and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution Ihe deposits or accounts of which arc insured or gUllrnnleed hy II Cedernl or
<br />stale agency (including Lender if Lender is such an institution). Lender shall apply lhe Funds 10 pay the escrow items.
<br />Lender may nol charge for hoJding 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 Ihat interesl shan be paid on the Funds. Unless an agreement is made or applicuble law
<br />requires interest to be paid, Lender shall nol be required to pay Borrower any interest or earnings on Ihe Funds. Lender
<br />shall give to Borrower, without charge. an annual accounting of the Funds showing credit... and debils to the Fund!t und Ihe
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />Ihis Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly paymenfs of Funds payable prinr 10
<br />the due dates oflhe escrow items, shall exceed Ihe amount required to pay the escrnw items when due. the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monOdy payments oC Funds. If Ihe
<br />amount oflhe Funds held by Lender is not sufficient to pay the escrow ilems when due, Borrower shall pay to lender any
<br />amount necessary to make up the deficiency in one or more payments a... required by lender. .
<br />Upon payment in fuJl of all sums secured by Ihis Security Instrumen1, Lender shaIJ promplly refund to Borrower
<br />any Funds held by Lender. If under paragraph Ie) Ihe Property is sold or acquired by Lender. Lender shall apply, no laler
<br />than immedialely prior to the sale of Ihe Property or its acquisition by Lender, any Funds held by Lender al I he lime of
<br />applicalion as a credit againsllhe sums secured by Ihis Securiry Instrument.
<br />3. Application or Payments. Unless applicable law proYides otherwise. aJ! payments received by Lender under
<br />paragraphs land 2 shall be-applied: first, lolale charges due under the Nole; second, to prepaymcnl charges due under the
<br />Note; third, to amounts payable under paragraph 2; fOllrlh, 10 interest due: and last, 10 principal due.
<br />4. Charges; Liens. Borrower shull pay all taxes, assessmenls, charges, fines and impositions altribulabJe [0 the
<br />Propeny which may atlain prioril)' over tins SecurilY Instrumenl. and leasehold payments or ground rents. if any.
<br />Borrower shall pay these obligations in Ihe manner provided in paragraph 2, vr if not paid in that manner, Borrower shall
<br />pay them on lime directly 10 the person owed paymen!. Borrower shall promptly furnish to Lender all nOlices of amounts
<br />to be paid under tbis paragraph. If Borrower makes these payment... dircclly, Borrower shall promptly furnish 10 Lender
<br />receipts evidencing the paymenls,
<br />Borrower shalJ promptly discharge any lien which has priorilY over this Securily Instrumenl unless Borrower: (a)
<br />agrees in writing to the paymenl of the obligation secured by the lien in a manner acceptable 10 Lender; (b) conlests in good
<br />faith the lien by. or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate 10
<br />prevent the enforcemenl of the lien or forfeiture of any part of the Properly; or (c) secures from the holder of lhe lien an
<br />agreement satisfactory 10 Lender subordinating the lien to this Security Instrument. If Lender determines that any pan oC
<br />the Property is subject to a lien which may ana in priority over this Securily Instrument, Lender mllY gi,..e Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of lhe actions set fOrlh above wilhin 10 days
<br />of the giving ofno1ice.
<br />S. Hazard Insurance.. Borrower shall keep the improvements now exisling or hereafter erected on the IJcopeny
<br />insured againslloss by fire, hazards incJuded within the term "exlended coverage" and any olher hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for lhe periods that Lender requires. The
<br />insurance carrier providing the insurance shaH be chosen by Borrower subjecl to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a slandard mortgage clause.
<br />Lender shall have the right to hold lhe policies and renewals. If lender requires, Borrower shalJ promptly give to Lender
<br />all receipts of paid premiums and renewal noticL'S. In the event of loss, Borrower shall give prompr nOlice 10 the insurance
<br />carrier and Lender. Lender may make proof orloss ifnot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied 10 resloration or repair
<br />ofthe Property damaged. if the resloration or repair is economically feasible and Lender's security is nol lessened. If the
<br />restoration or repair is nol economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied 10 the sums secured by this Security Instrument, whelher or not then due, wilh any excess paid 10 Borrower. rr
<br />Borrower abandons the ProperlY. or does not answer within 30 days a notice Crom Lender lhal lhe insurance carrier ha!'.o
<br />otfered to seide a claim, then Lender may collect the insurance proceeds. Lender may use lhe proceeds 10 repair or rC!ilore
<br />the Propeny or 10 pay sums secured by this Security Instrument, whether or nol then due. The 3D-day period will begin
<br />when the nolice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds 10 principal shall nol exlend or
<br />postpone Ihe due dale oftbc monthly payments referred 10 in paragraphs I and 2 (lr change the amounl of the pa}'menl~. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's righlto any insurance policies and proceeds resulling
<br />from damage to the Property prior to the acquisilion shall pass to Lender to the extent ofrhe sums ~ecured hy this SecurilY
<br />Inslrument immediately prior to the acquisition.
<br />6. Presenation aDd Maintenance ofPropert)'; Leaseholds. Borrower shall nnl de~tr('1Y, damage or ..ub~lantiall)'
<br />change the Property, allow the Properly 10 deleriorate or commit waste. If Ihi!. Sec,:uTlly In~lrument is on a lea'tehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee litle to the Properly, Ihe leasehold and
<br />fee tille shall not mc:r8e unless Lender agrees to the merger in writing.
<br />7. Protection of Lender'! Rights in the Property; Mortgage Insurance. If Borrower fails 10 perform Ihe
<br />covenants and agreements contained in this Securiry Instrument, or there is a legal proceeding th:Jt may ~igniticanlly affecI
<br />Lender's rights in the Properly (such as a proceeding in bankruptcy, probate. for condemnation or 10 enforce laws or
<br />regulations}.lhen lender may do and pay for whalC\ler is necessary III prollXt Ihe 'Iulue oCthe Property and Lender's right!!
<br />in the Properly. Lender's actions may include paying any sums secured by a hen .....hich has PrlOrll) m-.C'r Ihl!'> Securily
<br />Instrument. appearing in court, paying reasonable attorneys' fees and entering on the Property III muke repaIr... Altlmugh
<br />Lender may takeaClion under Ihis paragraph 7, LcnderdOG nol ha\oC' todo so
<br />Any amounts disbursed hy Lender under Ihis paragraph 7 shall become additional debt of Borro.....cr "C'l'urcd hy I hi!'>
<br />Security Instrument. Unlo.s Borrower and Lender agree 10 olher lenn!t. II(payment. Ih~ am"unl!t. shall bear IlIlerc..1 from
<br />the date or diibursmu:nt 31 the Note rale and ~hal1 be payable, .....lth InlcrC"tl. upon nollee from Lemic:r h'l nOfr\I\u'r
<br />reques.tmg paymenl.
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