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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as followf.: 88- 1 0621 7
<br />J. ~t of Prlaelpalud lateral; Pre~...t ud Late Cbarpo. Borrower sball promptly pay wben due
<br />tbe principal of and interest on tbedebt evidenced by the NOle and any prepayment and late cbarges due under the Note.
<br />2. Fuaddor TUelud 1_.... Subject to applicable law or to a wrillen waiver by Lender, Borrower shall pay
<br />to Lender on tbe day monthly payments are due under tbe Note, until tbe Note is paid in full, a sum ("Funds") equal to
<br />one-twelftb of: (a) yearly lUes and assessments wbicb may attain priority over tbis Security Inslrument; (b) yearly
<br />leaseboId payments or ground rents on tbe Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />monpae insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current ~ and reasonable estimates nrruture escrow items.
<br />The Funds sball be beld in an institutinn tbe deposits or accounts ofwbich are insur<:d or guaranteed by a federal or
<br />state asency (includil18 Lender if Lender is sucb an institution). Lender mall apply the Funds to pay the escrow items_
<br />Lender may not.barge for bOlding and applying tbe Funds, analyzing tbe account or verifying tbe escrow items, unless
<br />Lender pays Borrower interest on tbe Funds and applicable Jaw permits Lender to make sucb a charge. Borrower and
<br />Lender may agtee in writing that interest sball be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest 10 be paid" Lender sball not be required to pay Borrower any interest or earnings on tbe Funds. Lender
<br />sball give to Borrower, without cbargc, an annual accounting of the Funds sbowing credits and debits to the Funds and tbe
<br />purpose for wbicb eacb debit 10 tbe Funds was made. The Funds are pledged as additional security for tbe sums. secured by
<br />this Security Instrument.
<br />If tbe amount of tbe Funds beId by Lender, together with the future montbly payments of Funds payable prior to
<br />the due dales of the escrow items, sba1I exceed tbe amount required to pay tbe escrow items wben.due, tbe excess sball be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on montbly payments of Funds. If tbe
<br />amount oftbe Funds beId by Lender is not sufficient to pay tbe escrnw items when due, Borrower mall pay to Lender any
<br />amount necessary to make up tbe deficiency in one or more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender sball promptly refund to Borrower
<br />any Funds held by Lender. Ifunder paragrapb 19 tbe Property is sold or acquired by Lender, Lender mall apply, no later
<br />titan immediately prior to the sale of tbe Propeny or its acquisition by Lender. any Funds held by Lender at tbe time of
<br />application as a credit against the sums secured by tbis Security Instrument.
<br />3. App1katloa of Pa)'lllellIL Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 sball be applied: first, to late cbarges due under tbe Note; second, 10 prepayment charges due under tbe
<br />Note; tbird, to amounts payable under paragrapb 2; founb, to interest due; and last, to principal due.
<br />4. CIaraa; U..... Borrower sball pay all lUes, assessments, cbarges, fines and impositions allributable to tbe
<br />Property wbicb may attain priority. over tbis Security Instrument, and leasebold payments or ground rents. if any.
<br />Borrower sball pay tbese obligations in tbe manner provided in paragrapb 2, or if not paid in tbat manner, Borrower sball
<br />pay them on time directly to tbe person owed payment. Borrower sball promptly furnisb to Lender all notices of amounts
<br />to be paid under tbis paragrapb. If Borrower makes these payments directly, Borrnwer sbaIl promptly fumisb to Lender
<br />receipts evidencing the payments.
<br />Borrower sball promptly discbarge any lien wbicb bas priority over tbis Security Instrument unless Borrower: (a)
<br />qrees in writing 10 the payment oftbe obligation secured by tbe lien in a manner acceptable to Lender; (b) contests in good
<br />faitb the lien by, or defends againsl enforcement of tbe lien in, legal proceedings wbicb in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Propeny; or (c) secures from tbe holder of tbe lien an
<br />&gn!CIDeDt satisfactory to Lender subordinating tbelien 10 Ibis Security Instrument. If Lender detennines that any part of
<br />the Property is subject to a lien wbicb may attain priority OVer tbis Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy tbe lien or take one or more of tbe actions set fortb above witbin 10 days
<br />oftbe giving ofoolice.
<br />5, HuanlI_ Borrower sball k""p tbe improvements now existing or bereafler erected on tbe Property
<br />insured againstlosa by fire, hazards included witbin the tenn "exlended coverage" and any otber hazards for wbicb Lender
<br />requires insurance. This insurance shall be maintained in tbe amounts and for tbe periods tbat Lender requires. The
<br />insurance carrier providing tbe insurance sball be cbosen by Borrower subject to Lender's approval which shall not be
<br />uoreuonably witbbeId.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage cJause.
<br />Lender abaII have the righl tn bold the policies and renewals. If Lender requires, Borrower sball promptly give to Lender
<br />all receipts ofpaid premiums and renewal notices. In tbe event oflosa, Borrower sball give prompl notice 10 tbe insurance
<br />carrier and Lender. Lender may make proof ofloss ifnOl made promptly by Borrower.
<br />Unless Lender and Borrower otberwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Propeny 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, tbe insurance proceeds shall be
<br />applied 10 tbe sums secured by tbis Security Instrument, wbetber or not tben due, with any ..,.cess paid to Borrower. If
<br />" Borrower abandons tbe Property, or does not ansWer within 30 days a notice from Lender tbat tbe insurance carrier bas
<br />oIIlmd to settle a claim, then Lender may collect tbe insurance proceeds. Lender may use tbe proceeds to repair or restore
<br />the Property or to pay sums secured by tbis Security Instrument, wbetber or not tben due. The 3O-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otberwise agree in writing, any appliClltion of proceeds 10 principalsball not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change Ihe amount nf Ibe payments. If
<br />under paragrapb 19 the Property is acquired by Lender, Borrower's right tn any insurance policies and proceeds resulting
<br />from damage to tbe Propeny prior to the acquisition sba1I pass 10 Lender to the extent ofthe sums secured by Ibis Security
<br />Instrument immediately prior 10 the acquisition.
<br />6. ~t1oa IIIId Mafateaan... ofProperjt'; Leuebolda. Borrower sball not destroy, damage or substantially
<br />cbange tbe Property. allow tbe Property to deteriorate or commit waste. If tbis Security Instrument is on a leasehold,
<br />Borrow... shall comply witb tbe provisions oflbe lease. and if Borrower acquires fee title to tbe Property, the leasehold and
<br />fee titlesba11 not merae uoIeai Lender agrees 10 the merger in writing_
<br />7. I'rtIl8dIa of LettdeP'. RlaIlIa In the Property; Mortaqe Juuranee. If Borrower fails 10 perfonn lhe
<br />covenants and qreements contained in tbis Security Instrument, or there is a legal proceeding thaOnay significantly affect
<br />Lender'. riabts in the Property (aucb as a proceeding in bankruptcy, probate, for condemnalion or 10 enforce laws or
<br />rquJationa), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rigbts
<br />in the Property. Lendt:r's action. may include paying any sums secured by a lien wbicb has priority over lhis Securily
<br />Instrument, appeari.., in court, paying reasonable attorneys' fees and en.ering on the Property to make repairs. Althougb
<br />Lender may take action under this paragraph 7, Lender does not have 10 do so_
<br />Any arnounb disbuned by Lender under Ihi. paragraph 7 shall become additional debt of Borrower secured by this
<br />Security IMlrument. Unless Borrow.. and Lender agree 10 otber lerms of pay men I, Ihese amounts shall bear interesl from
<br />tIie date or disbunemenl al tbe Note rate and sball be payable. wilb inleres,. upon notice from Lender to Borrower
<br />requcstina payment.
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