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<br />UNIFORM rOVE"'iA!'o.'TS Borrnwer and Lender covcnantllnd agree ll~ liJllnw!'l: 88- 105 B 5 9
<br />1. Payment of Principal and Interest; Prepayment and Late ChnrAcs. Horrnwt:r ..hllll promptly pay whcll due
<br />the prindplll of and interesl on the debt evidenced by the Note and any prepuymcnt and laic L:harge.. due undcr Iht: Note.
<br />2. Funds (or Taxes and Insurance, Subject 10 applicable IlIw or to a wrillcn waiver hy I.ender, Borrower ~hllll puy
<br />10 lender on Ihe dny monthly payments arc due under the Note, untillhe Note is paid in full. :1 ~um ("Fund.... J equal 10
<br />onc-Iwelfth (Jf: (a) yearly laxes lInd asscssment\ which muy uttuin priority over Ihi!. Security Inslrumcnt; (b) yellrl},
<br />lensehold paymenls or ground rents on Ihe Properl)', if an)'; (c) yearly hU7.Urd imurunL:c premium!.: and Cd) ycarly
<br />mongage insurance premiums, if any, These items are called "cscrow ilems." Lender may cslimate the Funds due on the
<br />basis of current datu and reasonable t.'Stimales offulure t.'Scrow items.
<br />The Funds shull be held in an institulion the deposits or accounts of which are insured or guurnnteed by a federal or
<br />state agency (including lender if Lender is such an institution). Lender shall apply the Funds In pay the escrll\\' items.
<br />Lender may not charge for holding and applying Ihe Funds, analyzing the accounl or verifying the escrow items, unless
<br />Lender pays Borrower interest on Ihe Funds and applicable law permits Lender to make such iI 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 inten..'St to be paid, Lender shall nol be required to pay Borrower any inlerest or earnings on Ihe Funds. Lender
<br />shall give to Borrower. without charge, an annual accounling 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 Inslrument.
<br />If the amount of the Funds held by Lender, togelher with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed Ihe amount required to pay the escrow items when due, the excess shall be,
<br />nt Borrower's option, either promptly repaid 10 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 duc. narrower shall pay 10 Lender any
<br />amount ncct.'Ssary 10 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. Ifunder panlgraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior 10 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 1 and 2 sholl 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 lasl, to principal due.
<br />4. Chargesj Liens. Borrower shall pay nil taxes, assessments, charges, fines and impositions anributable to the
<br />Property which may attain priority over this Security Instrumenl. and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in Ihe manner provided in paragraph 2. or ifnot paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptl)' furnish to Lender all notices of amounts
<br />to be paid under this paragraph. 1f Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shaJl promptly discharge any lien which has priority over this Security Instrumenl unless Borrower: (a)
<br />agrees in writing to the payment of the Obligation secured by the lien in Il manner acceptllblc 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 operale 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 Jnstrument. If Lender determines that any pari of
<br />the Property is subject to a lien which may altain priority over this Security Instrument. Lender may give Borrower a
<br />nolice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 day!.
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or herenfter erected on Ihe Property
<br />insured againsl loss by fire, h1l7.ards included within the term "extended coverage" and any other hazards for which lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods thai 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 shull include a standard mortgage clause,
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipLS of paid premiums and renewal notices, In the event of loss, Borrower shall give prompt nolice to the insurance
<br />carrier and Lender. Lender may make proofofloss ifnot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied 10 restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is nol 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 the sums secured by this Security Instrument, whether or not then due, with any el"icess paid to Borrower. Jf
<br />Borrower abandons the Property, or does not answer within 30 days u notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not Ihcn due. The 30-dny period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shaJl not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 19the Property is acquired by Lender, Borrower's right 10 any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shalJ pass to Lend~r to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />fj, Preservation and Maintenance of Property; Leaseholds. Borrower shall nol destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument 1S on a leasehold,
<br />Borrower shall comply with the provisions oflhe lease, and if Borrower acquires fee title to the Property, the leasehold ilnd
<br />fee title shall not merge unless Lender agrees to the merger in wriling,
<br />7. Protection or Lender's Rights in the Property; Mort~agc Insurance. If Borrower fails 10 perform the
<br />covenants and agreements contained in lhis Security Instrument, or Ihere is Illegal proceeding that may significamly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnalion or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is ncccs!tary 10 protect Ihe value of the Propeny and Lender's rights
<br />in the Property. Lender's actions may include paying an)' sums secured by a lien which has priorily O\ier Ihis Security
<br />Instrument. appearing in court, paying reasonable attorneys' fees and entering on the Property 10 make repairs. Allhl1ugh
<br />Lender may take aClion under this paragraph 7, Lender does not have 10 do so.
<br />Any amounts disbursed by Lender nnder this paragraph 7 shall become additional debt of Dorrnwer !'lecurt.-d by thl~
<br />~urity Instrument. Unless Borrower and Lender agree 10 other lenns of payment. these amounh shull heJ.lr mlere"l frum
<br />the date of dlsbun>cmem at the Note rate and shall b( paynble, With illtcrc!ot. urnn nnlke fWIIl Lender to Bnrrtlwer
<br />requesting payment.
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