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<br />an 105529
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<br />UNIFORM CoVENANTS Borrower and Lender a\;;;anland agree.s follow"
<br />I. Pa)'lllenl Dr Principal and Inl.....t; Pr.paym.nl and Lal. Charg.., Dorrower ,hnll promptly pny when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and hUe charges due under the Note.
<br />Z. FIInddor To.. and Imurance. Subject 10 applicable law orto a wrillen waiver by Lender, Dorrowershall pay
<br />10 Lender on Ihe day monlhly paymenls are due under the Note, until the Note is paid in full, . slim ("Funds") equal to
<br />one-twelfth of: (a) yearly IIXes and assessments which may auain prinrity over Ihis Security Instrument: (b) yearly
<br />leasehold paymenls or ground renls on the Propeny, if any; (c) yearly hBZBrd insurance premiums; and (d) yearly
<br />m021aqe insurance premiums. if any. These items arc called "escrow items." Lender may estimate the Fund~ due on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which BfC insured or guaranteed by a federal or
<br />sllle agency (including Lender if Lender is such an inslilution), Lender shall apply the Fund, to pay the escrow items.
<br />Lender may not charge for hOlding and applying the Funds, analyzing the account or verifying Ihe escrow ilems, unl..s
<br />Lender pays Borrower inlerest on Ihe Funds and applicable law permits Lender to make such a charge, Borrower and
<br />Lender may agree in wriling Ihat inlerest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid. Lender shall nol be required to pay Borrower Bny interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting cfthe Funds showing credits and debits to the Funds and the
<br />purpose for which each debilto the Funds was made. The Funds are pledged as additional securilY for the sums secured by
<br />this Security Instrument.
<br />Irthe amount orthe Funds held by Lender, together with the fmure monthly payments of Funds payable prior to
<br />the due dates of tbe escrow items, shc.11 exceed the amount required to pay the escrow items when due, the excess shaH 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 ncccssary to make up the deficiency in one or more payments as required by LelJder.
<br />Upon paymenl in full of all sums secured by this Securily Instrument, Lender shall promptly refund to Dorrnw.r
<br />any Funds held by Lender, If under paragraph 19 the ProperlY issold or acquired by Lender, Lendershall apply. no laler
<br />than immediately prior to the sale of the Propeny or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />a. AppllClldoD of Pa)'lllenlli. Unless applicable law provides otherwise, all paym.nts received by Lender under
<br />paragraphs I and 2 shall be applied: first, 10 lale charges due under the Note: s.cond, to prepayment charges due under the
<br />Note; third. to amounts payable under paragraph 2; fourth. to interest due; and last, to principal due.
<br />4. <:.'barges; liens. Borrower shall pay all taxes, assessnumts, 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 if not 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 direcdy, Borrower shaH promptly furnish to Lender
<br />receipls evidencing the paymenls.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to Ihe paymenl oflhe obligalion secured by the lien in a mann.r a..eptablelo 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 to
<br />prevenlthe enforcement of th. lien or forfeiture of any pan of th. Properly; or (c) secures frnm the holder of the Ii.n an
<br />agreement satisfactory 10 Lender subordinating the lien to this Security Instrument. If Lender determines thaI any pan of
<br />the Property is 5ubjccI to a lien which may Bttain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or lake one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />5. Huard Insurance. Borrower shall keep the improvements now existing or hereafter erected on Ihe Property
<br />insured against loss by fire. hazards included within the lerm "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for Ihe 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 />unroasonabl)' withheld,
<br />All insurance policies and renewal. shall be accepllble to Lender and shall include a slandard mortgag. clause.
<br />Lender shall have Ihe right to hold the policies and renewals. If Lender requires. Borrower shall promptly give to Lender
<br />all receiplS of paid premiums and renewal nOlices, In the event of loss. Borrower shall give prompl notice 10 th. insurance
<br />carrier and Lender. Lender may make proof ofloss if not made promptly by Borrower.
<br />Unless Lender and Borrower olherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Propeny damaged. if lh. restoralion or repair is economically feasible and Lender', securily is not 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 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 docs not answer within 30 days a nolice from Lender that the insurance carrier has
<br />otrered 10 settle B claim, then Lender may collect the irlsurance proceeds. Lender may use the proceeds to repair or restore
<br />the Propony or to pay sums secured by this Security Inslrument. whether or not lhen due. The JO-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />JlOStponelhe du. dale ofth. monthly paymentsreferred to in paragraph, I and 2 or change the amounl oflhe payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policics and proceeds resulting
<br />from damage to the Propeny prior to the acquisition shan pass to Lender to the extenl oflhe ,ums secured by this Security
<br />Instrument immediately prior 10 the acquisilion.
<br />6. PrelenltJon and Maialenance of ProperJiY; Leueholda. Borrower shall not destroy, damage or substantially
<br />change the Property. allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehoJd,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the ProperlY, the leasehold and
<br />fee tille shall not merge unlelS Lender agrees to the merger in writing.
<br />7. Prolec:tloD of Lender'. Rip" In lbe Property; Mortllllge losuranee. If Borrower fails to perfonn ,he
<br />covenants and asreements contained in this Security Instrument. or there is a legal proceeding that may significantly affecl
<br />Lender'. ripts in the Property (Iuch u a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />rep)alions). lhen Lender may do and pay fnr whalever is necessary 10 protect the value of the Propeny and Lender', rights
<br />in the Propcny. Lender's actions m.y include paying any sums secured by a lien which has priority over this Security
<br />Imtrument. appearing in coun, paying reasonable attorneys' fees and entering on the Property to make repairs. Allhough
<br />Lmdermay rake action under this paragraph 7. Lender does nol have 10 do so
<br />Any amounts disbursed by Lender under this paragraph 7 shall become addllional debt of Borrower secured by this
<br />Security Ins.trum~nt, Unless Borrower and Lender agree to other terms of paymenl, lhese: amounls shall bear interest from
<br />the date or disbursemenl a. the NOle rale and shall be payable, with mleresf. upon notice from Lender (0 Borrower
<br />tcqUClt1D1 payment
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