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<br />gS- 105489
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<br />UNIFORM COVENANTS Borrower and Lender covenanl.nd agree as follows:
<br />1. pay..n, of Princlpoland Interest; Prepayment and Late C.bara.', Borrower shall promplly pay when due
<br />Ihe principal of and interest on ,he debt evidenced by the Note and any prepayment.nd lale charges due under Ihe NOle,
<br />1. F...... forT..... and IlIIUrlDCO, Subject 10 applicable law orto a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly JlIIyments are due under the Note, until the Note is paid in fuU, a sum ("Funds") equal 10
<br />one-Iwell\h of: (a) yearly taxes and assessments which may auain priority over Ihis Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premium.; and (d) yearly
<br />mortpac insurance premiums. if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of currmt data and reasonable estimales ofruture escrow items.
<br />The Funds shall be beld in an institution Ihe deposils or accounts of which are insured or guaranteed by a federal or
<br />.tate agency (including Lender if Lender is such an institulion), Lender shaU apply the Funds to pay the escrow items.
<br />Lender may not cbarge for holding and applying the Funds, analyzing the accounl or verifying the escrow items, unl=
<br />Lender pays Borrower interest on the Funds and .applicable law pcnnits Lender 10 make such a charge. Borrower Bnd
<br />Lender may agrco: in wriling thaI interest ,hall be paid on the Funds. Unless an agreement is made or applicabl. law
<br />requires interest 10 be paid, Lender shaU not be required to pay Borrower any interest or earnings on the Funds. Lend.r
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits Bnd debits to the Funds and the
<br />purpose for which each debilto 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 h.ld by Lender, together with the future monthly paymenls 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 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 sufticicnLto pay the escrow items when due. Borrower shall pay to Lender any
<br />amount necessar)' to make up the deficiency in one or more payments as required by LeQder.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund 10 Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />Ihan immedialely prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender atlhe time of
<br />application as a credit against the sums secured by this SecLlrity Instrument.
<br />3, Applleadon of PaymC1lIl. Unless applicable law provides olherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: fir.;t, to la:c charges due uuder the Note; second, to prepayment charges due under the
<br />Note; Ihird, 10 amounts payable under paragraph 2; fourth, to interest due; .nd last, to principal due,
<br />4. Cb.araes; UeDIi. Borrower shall pay all taxes, assessm~nts, charges, fines and impositions attributable to the
<br />Propeny 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 if not paid in thaI manner, Borrower shall
<br />pay them on time directly to the penon owed payment. Borrower shall promptly furnish to Lender aU notices of amounts
<br />to be paid under this paragraph. If Borrower makes Ihese payments direclly, Borrower shall promplly furnish to Lender
<br />receipts evidencing Ihe payment..
<br />Borrower shall promptly discharge any lien which has priorily 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 operale to
<br />preventlhe enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreemenl salisfaclory to Lender subordinating the lien 10 this Security Instrument. If Lender delennines Ihat any part of
<br />the Property is subject La a lien which may attain priority over this Security Instrument. Lender may give Borrower a
<br />notice identifying th. lien. Borrow.r shall salisfy the lien or take one or more of Ih. actions sel forth above within 10 days
<br />of the giving of notice.
<br />5. Huard ....tll'allee. Borrower shall keep the improvements now existing or hereafter erected on the Propeny
<br />insured againstloos by fire, hazards included wilhin th.tenn .....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 to Lender and shall include a standard mortgage clause,
<br />Lender ahaIl have the right to hold Ihe policies and renewals. If Lender requires, Borrower shsll promptly give to Lender
<br />aU receipts of paid premiums and renewal notices. In the event of loss. Borrower shall give prompt notice to 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 La restoration or repair
<br />of the Property damaged. if Ihe resloration or repair is economically feasible and Lender's security is not lessened. If Ihe
<br />restoration or repair is not economicaUy feasible or Lender's security would be lessened. the insurance proceeds shall be
<br />applied to Ihe sums secured by Ihit Security Instrument, wheth.r or nollhen due, with any e..... paid to Borrower, If
<br />Borrower abandons the PropenYl or does nol an5wer within 30 days B notice from Lender that the insutance carrier has
<br />ofren:d to tcttle. claim, then Lender may collect the in!:urance proceeds. Lender may use the proceeds 10 repair or restore
<br />the Property or 10 pay sums secured by Ihi. Security Instrumenl, whether or not then due. The 311-day period will begin
<br />when Ihe 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 dale of Ihe monlhly payments referred 10 in paragraphs I and 2 or change Ihe amounl of the payments. If
<br />under paragraph 19 the Propcny il acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property priorlO the acquisition shall J>lSS' to LenderlO Ihe e.lent of the sums secured by this Securily
<br />Inslrument immediately prior 10 Ihe acquisition.
<br />6. -'adon and Malalolwlco ofP~; Leaaebolda. Borrower shall not destroy, damage or substantially
<br />change the Property, allow Ihe Property 10 deleriorate or commil waste. If this Security Instrument is on 0 leasehold,
<br />Borrower ,hall comply with the provisions of the lease. and if 8orrowt:r acquires fee tille to Ihe PropenYl the leasehold and
<br />fee title shall not merge unless Lender 8gl'ea to thc merger in writing.
<br />7. Pratec1IOII of Leoder'. R111b1l In the Property; Mortpao losurance. If Borrower fails to perfonn ,he
<br />covenants and agreements contained in this Security Instrument, or then: is a legal proceeding thai may significantly aWecl
<br />Lender', rights in tbe Propeny (such as a proceeding in bankruplCY, probatc, for condemnation or 10 enforce laws or
<br />rqulationJ). then Lender may do and pay for whatever is necessary 10 prolect the value of the Property and Lender's rights
<br />in the Propcny. Lender', actions may include paying any sums secured by a lien which has priority o\'er this Security
<br />Instrument, appearinl in court. paying reasonable Ittorneys' fees Bnd entering on the Property to make repairs, Allhouga
<br />Lender may take action under Ihi. paragraph " Lender does nol have to do so.
<br />Any amounl. dishursed hy Lender under this paragraph 7 shall become additional debt nfBorrower secured by this
<br />Security lnltrument, Unless Borrower IInd Lender agree 10 other lenns of paymenl. these amounts shall bear mteresl from
<br />the dalc of disbursement It the Nole rale and shall be payable, wl1h Interest, upon notice from Lender 10 Borrower
<br />requesUDI pII)'mc:nl.
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