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<br />UNIFORM COVltNASTS norrowcr and Lendcr covenorll nnd agree as follow!t:
<br />I. Payment of Prlnelpal and Interest; Prepaymen' and La'e Charges. Borrower shall promptly pay when due
<br />the principal ofund interest on the dehl evidenced by lbe Note and any prepaymentund laic churges due under the Note.
<br />2. Funds for Taxes and Insurance. Subjeclto applicable law or to a wrillen waiver by Lender, Borrower shull pay
<br />to Lender on the day monthly pa}'ments are due under the Note, until the Note is paid in full, u sum ("Funds") equullo
<br />one-twelfth of: (a) yearly taxes and assessments which may allain priority over this Security IlIstrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurallce premiums; and (d) yearly
<br />mongage insurance premiums, iruny. These items ore called "escrow items." Lender may estimate the Funds due on the
<br />basis of curren 1 data and reasonable estimates offulure 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 />state sgency (including Lender if Lender is such an institution). Lender shall apply the FUllds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing tbe account or verifying tbe escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to mnke such a L:harge, 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 inlerc!oit 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 arc 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 fulure 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 />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. If under paragraph 19 tbe 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 (he sums secured b)' this Security Instrument:
<br />3, Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under
<br />paragraphs 1 and 2 shall be applied: first, to late charges due under tbe Note; second, to prepayment charges due under lbe
<br />Note; third, to amounts payable under paragraph 2; fourtb, to interest due; and last, to principal due.
<br />4. Charges; 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 mannt:r, Borrower shall
<br />pay them on lime direclly to the person owed payment. Borrower shall promptly furnisb to Lender all notices of amounts
<br />10 be paid under tbis paragraph. If Borrower makes these payments directly, Borrower shall promptly furnisb to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discbarge any lien which has priorily over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the Hen 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 Lendcr dClcrmincs that any part of
<br />the Properly is subject to a lien which may attain priority over this Security 11Istrumelll, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the act inns set forlh above within 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance, Borrower shall keep the improvements now existing ur hereafter erected 011 the Property
<br />insured against loss by tire, hazards included within the term "extended coveragc" and any olher 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 witbbeld.
<br />AIJ 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 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 economicaUy 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 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 Propeny or to pay sums secured by this Security Instrument. wbether or not then due. The 3D.day period will begin
<br />when the notice is given.
<br />Unless lender und Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date ofthc monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under psragrapb 19 tbe Properly is acquired by Lender, Borrower's rigblto any insurance policies and proceeds resulting
<br />from damage to the Property prior 10 the acquisition shaH pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to lhe acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds, Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property 10 deteriorate or commit waste. If this SecurilY Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Properly, Ihe leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Proteetion or Lender's Rights in the Property; Mortgage Insurance. rf narrower fail!> to perform Ihe
<br />covenants and agreements contained in this Security Instrument, or there is a legal procceding Ihat may significanlly affcct
<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 necessary to protect the valuc of the Property and Lcnder's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priori!}' over this Security
<br />Instrument. appearing in court. paying reasonable attorneys' fees and entering on Ihe Property 10 mnke repairs. Although
<br />Lender may take action under this paragraph 7, Lender does not have 10 do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become ilddil ional debt of Borrowcr sCl:urcd by I hi~
<br />Security Instrument. Unk-ss Borrower llnd Lender agree 10 other lerms of paymellt, these amount!>. !>.lmll bear intcresl from
<br />the date of disbursement at the Note mIl' and shull he payable, with interest, upon notice from Lender to Bnrrn\I,'cr
<br />requesting payment.
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