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<br />UMFORM COVENANTS Borrower nnd Lender eovennnt nnl~~~ rnll!v9 525 0
<br />1. P&)'mcnt or Principal and Interest; Prepayment and Lole CharRcs. Bnrrower shull promptly (luy when due
<br />the principal of and interesl on Ihedcbt evidenced by the Note and un)' prcpnymcnlunci lnle chnrgc!t due under rhe Note.
<br />2. Funds ror Taxes and Insurance. Subject to applicable luw or to II wrinen waiver by Lenda:r, Horrower !\hull pl\l!
<br />to Lender on the day monthly payments are due under the Note, unlHthe Note i!\ paid in full, 1\ !\UT11 (HFund!\") equal to
<br />onc.twc:Jnh of: (n) yearly taxes and Il!iscssmcnts which may attuin priority over Ihi!t Security Instrument; (b) yearly
<br />leasehold paymcnts or ground rcnts on the Property, if any; Ie) yearly hazard insurance premiums: nnd (d) yearly
<br />mongage insurance premiums, if any, These items arc called "e!\crow items." Lender mny a:stimlltc the Funds due on the
<br />basis of current data and reasonable estimates offuture escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which urc insured or gunrnnteed by a federal Of
<br />state agency (including Lender if Lender is such nn institution). Lender shnllllpply 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 11 charge, Borrower and
<br />Lender may agree in writing thai interest shall be paid on the Funds. Unless an ugreement 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 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 date.'i of the escrow items. shall exceed the amount required 10 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 />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 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 Ihe Prnperty 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 I his Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to lute charges due under the Note: second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2: fourth, 10 interest due; and last. to principal due.
<br />4. Chargesj Liens. Borrower shall PIlY all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may altain priority.o\'er 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 ifnnt 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 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 this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable 10 Lender; (b) contests in good
<br />faith the lien by. or defends against enforcement of the lien in. legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Properly; 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 thai any part of
<br />.the Property is subject to a lien which may altain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. BOITflWer 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 />s. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured againslloss by fire, hazards included within the term "extended coverage" and any other 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 to Lender und shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shaJl promptly give 10 Lender
<br />all receipts of paid premiums and renewal nOlices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proofofloss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shull be applied to restoration or repair
<br />of the Propeny damaged. if the restoration or repair is economicully feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property. or does not answer wilhin 3D days a notice from Lender thaI the insurance carrier has
<br />otfered to settle a claim. then Lender may collect Ihe insurance proceeds. Lender may use the proceeds 10 repuir or restore
<br />the Propeny or to pay sums secured by this Security Instrument, 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, Dny application of proceeds tn principal shall not ex lend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amounl oflhe payments. If
<br />under paragraph Iq the Property is acquired by Lende.r, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent ufthe ..urns secured by this Securily
<br />Instrument immediately prior to the acquisition.
<br />6. Presenation ond I\1aintenancc of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit wuste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquires fee lille h) the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees 10 the merger in writing.
<br />7. Protection of Lender's Rights in the Property; !\'Iortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument. or therc is a legal proceeding Ihat may significantly affect
<br />Lender's rights in the Propeny (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatc\'er is necl'Ssary to proleel the value (lfthe Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by u lien which ha~ priority ovcr this Security
<br />Instrument. appearing in court. paying reasonable attorneys' fees and entering on thc Property to mnkc rcpairs. Although
<br />Lender may take action under this paragraph 7, Lender does not have 10 do so
<br />Any amounts disbursed by Lender under this paragraph 7 shall become: <lddItlOlIlll de:hl of Bormwe:r ..ecured hy tlw.
<br />Securily Instrument. UnJess Borrower and Lender agree to other terms llfpllyml'lll. Iha:..c UIlHlunh ..Imll he:ar mlcresl fmOl
<br />the date of disbursement ilt the Nota: rute and "hall be payable. ,\ith inle:rl'!ol, upon Ilnlll.'l' frolll I.l'ndcr 10 Bllrnm'C'f
<br />requesting paymenl.
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