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<br />UNIFORM COVENANTS Borrower and Lender covcnant nnd agree as follo\l/s: 8R- 10 594 0
<br />.1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower ~nll promptly pay whcn due
<br />the principal of and interest on the debt evidenced by the Nolcnnd any prepayment nnd lnte charges due under the Note,
<br />. 2. Funds for Taxes Dod Insurance. Subject to apphcable law or to n written waiver by Lender, Borrower shall pay
<br />10 Lender on the day monthly payments are due under the Note. l.llltil the Note is pnid in full, n sum ("Funds") equal to
<br />onC'-lwelOh of: (n) yearly taxes and nssessments which may attain priority oyer Ihis Security InstruJ11cnt; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; Bnd (d) yearly
<br />mortgage insurance premiums, if nny. These items llre called Uescrow items." Lender may estimate the Funds due on the
<br />basis ofeurrent data and reasonable estimates orruture escrow items.
<br />The Funds shaH be held in an institution the deposits or accounts of which arc insured or guaranteed by a federal 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 />I.ender pays Borrower intc:rest on the Funds and applicable law permits lender to make such n charge. Borrower and
<br />Lender may agree in writing thai interest shall be paid on the Funds. Unless an ngreement 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 />Uthe 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 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 sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />umount 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. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immedialely prior 10 the !tale of the Properly or ils acquisition by Lender, any Funds held by Lender at the time of
<br />application as 11 credit againsllhe sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under
<br />paragraphs I and 2 shall 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. Chargesj Liens. Borrower shall pay all taxes, assessments, 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. BOITower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge nny 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 acceplable 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 determines that any part of
<br />the Propcrty is subject to a lien which may attain 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 days
<br />of the giving ofnolice,
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured agninstloss by fire. hazards included within the term Uextended 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 approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and rcncwals 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 shall promptly give to 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 if not 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 security 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 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 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 then due. The 30-day period will begin
<br />when the notice is gh'en.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change :he amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Sc<:urity
<br />Instrument immediately prior to the acquisition.
<br />6. Presenation and Maintenance or Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If Ihis Security Instrument is on a leasehold.
<br />Borrower shaJl comply with the provisions of the lease, and if Borrower acquires fee title to Ihe Property, the leasehold and
<br />fee dlte shall not merge unJess Lender agrees to the merger in wridng.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument. or there i~ a legal proceeding that Rlay significantly affect
<br />Lender's rights in Ihe Property (such as a proceeding in bankruplcy, probale, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value (If the Property and Lcnder's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has prinrity uvcr this Security
<br />Instrument. appearing in court, paying reasonable attorneys' fees and entering on the Property to mnke repairs. Allhough
<br />Lender may take action under this paragraph " lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 1 shall become additional dehl llr Borruwer !occured b)' this
<br />Security Instrumen1. Unless Borrower and Lender agree to other tenns of pay men I. these amounl!'> shall hear inlerl"Sl frum
<br />the date of disbursement al the Note rate and shall be payable, with interest. Uplllt nl1IIC... from l.cnJl.'f 10 Bllrrllwer
<br />'requesting payment.
<br />If Lender reqUIred mongage insurance a.~ a condition of making the loan secured by Ihl!'> SL'\..urilY InSln1tllel1l,
<br />Bnrw\lter ..hall pay lhe premIUms required 10 maintain lhe insurunce in effecI t1l1lil such lime Il~ lhc rCljlllrcI111.!1l1 fllf lhe
<br />lII..urunce Il!munall" In ill':C()fdnnc~ with Borrower's and lender',; written IIgfL'Cmcllt or lIflplll'i\hk 111\\
<br />H. In5p4:ctlon. Lender or ils agent moy make reasonable enlno. upun and lIl!'opel'l1l1n.. pf Ihl' I'rllperl\ IClIlh-r
<br />..hall ~IH' UUrfll\lter nnUl.e allh~ lime ufnr prior In an Inspection speclrYIOJt reILlounahlC' "'IW"C flll !tlt'lIl"PCl"IOll
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