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<br />UNIFORM COVENANTS. Borrower and Lender covenanRtli agree a~~o~s? 5 5
<br />1. P.ymenl af Princlpal.nd Interest; Prepoyment and Late Charge.. Borrower shall promptly pay when due
<br />tbe principal ofond interest on the debt evidenced by the Note: and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a wrillen waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, unlillhe Note is paid in full, a sum ("Funds") equal 10
<br />one-twelfth of: (a> yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if anYi (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items arc: called "escrow items." Lender may estimate the Funds 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 are insured or guaranteed by a rederal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lender may nol 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 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 inte:rest 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 oftbe Funds showing credits and debits 10 the Funds and the
<br />purpose for which each debit to the Funds was mnde. The Funds are pledged as additional security ror 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 dates of the escrow items, shall exct.-ed the amount required to pay the escrow items when due, the excess shaJl be,
<br />at Borrower',. 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. Irunder paragraph 19 the Propeny 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 85 a credit against the sums secured by this Security Instrument.
<br />3. Application or Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shaJl be applied: first, to late charges due under the Note; second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest duc; and lust, to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assc.."SSments, charges. fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, jf any.
<br />Borrower shaJl pay these: obligations in the manner provided in paragraph 2, or ir nOl paid in thm manner, Borrower shall
<br />pay them on time direclly 10 the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. Jf Borrower makes these payments directly, Borrower shall promptly rumish to lender
<br />receipts evidencing the payments.
<br />Borrower shaU promptly discharge any lien which has priority over this Security Instrument unles!> 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 Hen by, or defends against enforcement or the: lien in, legal proceedings which in the Lender's opinion operate 10
<br />prevent the enforcement or the lien or forfeiture or any part or the Propeny; 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 1hat uny part of
<br />the Property is subject 10 a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shaJJ satisfy the lien or take one or more or the actions set rorth above wi1hin 10 days
<br />of the giving ofnotice.
<br />5. Hazard Insurance. Borrower shalJ keep the improvements now exisling or hereafter erected on the Property
<br />insured against Joss by fire, hazards included within the tenn "CJttended 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 llpproVlll 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 shall have the right to hold the policies and renewals. If Lender requires, Borrower shun promptly give to lender
<br />all receipts or paid premiums and renewal notices. In Ihe event of loss, Borrower shall give prompt notice to the iD!iurance
<br />carrier and Lender. Lender may make proof or loss if not made promptly by Borrower.
<br />Unless Lender and Borrower olherwise llgree in wriling, insurance proceeds shall be llpplicd 10 restoration or repr.ir
<br />of the Property damaged. if the restoration or repair is economically reasibJe and Lender's security is not lessened. Ir the
<br />resloration or repair is not economically reasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or nol then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from lender that the insurance carrier has
<br />offered to senle a claim. then Lender may cnlIectthe insurance proceeds. Lender may use the proceeds to repair or restore
<br />thl; ProperlY or to pay sums secured by thili Security Instrument, whelher or not then dUI!. The 3o..dny period will begin
<br />when the noticc i~ gi'r'cn.
<br />Unless Lender and Borrower olhcrwise agree in wriling, any appJication of proceeds tl) principal shall not extend or
<br />postpone the due dale of the monthly payments referred 10 in paragraphs I and 2 or change the amounl of the payments. Ir
<br />under paragraph 19 the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to 1he Property prior to the acquisition 'Shall pass to Lender to the extenl of Ihe sums secured by Ihis Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not des1roy. damage or substantially
<br />chang&:: the Property, allow .he Property to deteriorate or commit was1e. If this Security Inslrument is on a leasehold.
<br />Borrower shan comply with the provisions of the lease. and irOorrower acquires fee Ii de to Ihe Proper1y. the leasehold and
<br />fee title shall nol merge unless Lender agrees to the merger in writing.
<br />7. Prot~tiDn or Lender's Rights in the Property; l\fortgage Insurance. lr Borrower fails 10 perform the
<br />covenants and agreemenls contained in this Seeurily Instrument, or there is a legal proceeding thai may significanlly affect
<br />Lender's rights in the Propeny (such as a proceeding in bankruptcy, probare. for condemnalion or 10 enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary 10 prolecl the value of the ProperlY and Lender's righls
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority o\'er this SeCUnl)'
<br />Instrumenl. appearing in court. paying reasonable attorneys' recs and entering on the Properly to make repilIn.. Although
<br />Lender may take action under this paragraph 7, Lenderdoes not have 10 do so.
<br />Any amounts disbursed by lender under this paragraph 7 shaH be:come additional dehlllf Borrower seC'ured by thl'"
<br />,Security Instrument. Unless Borrower and Lender agree 10 other terms or paymenl. thest:' amnunl!'o ...hall henr mlercsl from
<br />the date of disbursement al the Note rate and shall be payable. wl1h Interest, upnn DuUce frmTl Lcndl.'f hI nmftlwC'r
<br />requesting paymenl.
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