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<br />_ "105715
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<br />UNIFORM COVENANTS. Borrower ond Lenderc~nDnt and agree us follows:
<br />I. Payment or PrIncipal and Interesti Prepayment Bod Late Charges. Borrower shall promptly pay when due
<br />the principal orand interest on the debt evidenced by the Note nnd an:, prepayment and laic charges due under the Note.
<br />2. FunulorTal.esand Insurance. Subjecllo applicable law or to a written waiver by Lender, Borrower shalJ pay
<br />to Lender on the day monthly payments are due under the Note, until.he Nole is paid in full, n sum ("Funds") equal to
<br />one-twelfth of: (0) yearly taxes and assessments which may aunin priority over this Security Instrument; (b) yearly
<br />leasehold payments Of ground rents on the Property, if nny; ee) yearly hazard insurance premiums; and Cd) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonableestimatC!i offuture escrow items.
<br />The Funds shall be held in an inslitulion the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an inslitulion). Lender shall apply 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 appHcable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the 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 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 llS additional security for the sums secured by
<br />this Security Instrument.
<br />[fthe amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount requircd to pay the escrow items when due, the excess shall be.
<br />at Borrower's option, either promptly repaid to Borrower or credited 10 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 Sl."CUrity Instrument. Lender shall promptly refund to Borrower
<br />any Funds held by Lender. Ifunder paragraph 19 the Property 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 this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs t and 2 shall be applied: first, to late charges due under the Notc; second, 10 prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2j fourth. to interest due; and IllSt, 10 principal due.
<br />4. Chargesj Liens. Borrower shall pay allta}ljes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority. over this Security Instrument, and leasehold payments or ground rent!;, if any.
<br />Borrower shall pay these obligations in the manner providcd 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 amounls
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptJy furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (n)
<br />agrees in writing to the 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 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 Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender detennines that any part of
<br />the Property is subjecl to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice idenlifying the lien. Borrower shall satisfy the lien or take one or more of the actions sel forth above within 10 days
<br />ofrhe giving ofnoliee.
<br />S. Hazard Insurance. Borrower shan keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within Ihe term "extended coverage" and any olher hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounls and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subjecl to lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewaJs shall be acceplable 10 Lender and shall include a standard mortgage clause.
<br />Lender shall have the right 10 hold the policies Qnd renewals. If Lender requires, Borrower shall promptly give 10 lender
<br />all 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 ifnot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged. if the restoration or repair is economically feasible and lender's securily 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 Ihe sums secured by this Security Instrumenl, whether or nol then due, with any e}ljcess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days II notice from Lender thallhe ir.~urance carrier has
<br />offered to settle a claim, then Lender may collecl the insurance proceeds. Lender may use the proceeds 10 repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whclher or nol Ihen due. The 3U.day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any appliealion ofproceeGs to principal shall not e}ljtend or
<br />postpone Ihe due date orthe monthly payments referred to in paragraphs I and 1 or change the amount of the payments. If
<br />under paragraph J9 the Property is acquired by Lender. Borrower's rigHt to any insurance policies and proceeds resulling
<br />from damage to the Property prior to the acquisition shall pass to lender to the extent of the sums secured by this Security
<br />Instromenl immediatdy prior to the acquisition.
<br />6. Presenoatlon and Maintenance 01 Propel1&'; Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Property, allow the Property to deteriorate or commil wasle. If Ihis Security Instrumenl is on a leasehold.
<br />BorrowershalJ I;omply with the provisions of the lease, and if Borrower acquires fee title to thc Property, the leasehold and
<br />fee title shall nol merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perfono the
<br />covenanls and agreements contained in this Security Instrument. or Ihere is a legal proceeding thai may significantly llffecl
<br />Lender's rights in the Propeny (such as a proceeding in bankruptcy, probale. for condemnation or to enforce laws or
<br />regulations). then Lender may do and pay for whatever is necessary to protect the value of the Property llnd Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by 11 lien which has priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees ond entering on the Property to make repairs. Although
<br />Lender may lake action under this paragraph 7, Lender docs nol have to do 50.
<br />Any amounts disbursed by Lender under this paragraph 7 shaJI become addilional debt or Borrower secured by this
<br />Securily Ins1rumen!. Unless Borrower and lender agree to other terms of payment. Ihl.'Se amounls shall bear inler~1 rrom
<br />the dale or disbursement at the Note ralc and shall be payable. with mterest, upon nolice rrnm Lender In Bnrrower
<br />requesting paymenl.
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