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<br />68- 105797
<br />UNIFORM CoVENANTS. Borrower Bnd Lender covenant and Bgree as follows:
<br />I. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal orand interest on the debt evidenced by the Noie and any prepayment and late charges due under the Note.
<br />2. Fundi 'or Tun aDd Insurance. Subject to applicable law or 10 a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
<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 any; (e) yearly hazard insurance premiums; and (d) yearly
<br />manpge 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 offuture escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />stat= agency (including Lender if Lender is such an instilulion). Lender shall apply Ihe Funds to pay the escrow items.
<br />Lender may nol charge for holding and applying the Funds, analyzing the accounl or verifying Ihe escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permilS Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest sball ~ 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 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 />tbe 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 sufficienllo pay Ihe escrow ilems when due, Borrower shall pay to Lender any
<br />amount neccssa.ry 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 SecurilY Inslrument, Lender shall promptly refund 10 Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired hy Lender, Lender shall apply, no later
<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 />3. AppllcatiOD or Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 shaD 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 due; and last. to principal due.
<br />4. Caarges; Liens. Borrower shall pay all taxes, assessments, charges, fines Bnd impositions attributabl~ 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 ifoot paid in that manner, Borrower shall
<br />pay them 00 time directly 10 tbe penon owed payment. Borrower shall promptly furnish to Lender all notices of amounlS
<br />to be paid under this paragraph. If Borrower makes Ihese payments direclly, Borrower shan promplly furnish 10 Lender
<br />receiplS evidencing the payments.
<br />Borrower shall promptly discharge any Jien which has priority over this Security Instrument unless Borrower: (8)
<br />agrees in writing to the payment of the ohHaBrion 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 10 this Security Instrument. If Lender detennioes thai .ny part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving ofnotite.
<br />5. HazanllDsuraace. Borrowcr shall keep the improvements now existing or hereafter crected on the Propcny
<br />insured apinstloss by fire, hazards included within the term "cxtended covcrage" and a.ny 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 />AU insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have tbe right to hold the policies and renewals. If Lender requires, Borrower shall 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 orIos., ifnot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writins, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if Ihe restoration or repair is economically feasible and Lender's security is oot lessened. If the
<br />restoration 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 Ihen due, with any e.cess paid 10 Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice rrom Lender that the insurance carrier has
<br />ofI'ered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or 10 pay SUIIII !lCltUred by this Security Imlrument, whether or nol then due. The 3().dsy period will begin
<br />wben tb. notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any applicalion of proceeds to principal sball note.tend or
<br />postpone the due dale of the monthly paymenlS referred to in paragraphs I and 2 or changetbe amount of the payments. If
<br />under paragraph 19 the Property is aoquired by Lender, Borrower', right 10 any insurance policies and proceeds resulling
<br />from damase to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Prelenatlon aad MalDtenante of ProperJir; Leaseholds. Borrower shaU not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with Ihe provisiom of the I...... and if Borrower acquires f.. title to Ihe Property. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7, Proteetioo of Lender'. RIRhta 10 lb. Properly; Mortpge Insurance. If Borrower fails 10 perform the
<br />covenant. and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender', nahtl in the Propcny (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />I'eJUlationl), then Lender may do and pay for whatever is necessary to prolcctlhe value of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />lnItnuncnt. appearing in court. paying I'"t:UOnable attorneys' fcc:s and entering on the Property to make repairs.. Although
<br />I..ender may take action under this paragraph 7. Lender does not have to do so.
<br />Any amouets disbursed. by Lender under this paragraph 7 shall become additional debt or Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other teons of payment. Ihesc amounts shall bear interest from
<br />the date of disbursement al the Note rate and shall be payable. with inlerest, upon notice from lender (0 Borrower
<br />requestina pIIyment.
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