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<br />UNIFORM CoVENAN'Ill. Borrower and Lende. coy...ant and agree as follows:
<br />1. ~I of PrlDdpal and 1__1; Prepaymeal ad Lale CIwsn. Borrower shall promptly pay when due
<br />the principal ofUld interest on Ihe deblevidenced by the NOle and any prepaymenl and lale charges due under the NOle.
<br />2. Fuadll'or Tueaand luuruce. Subject 10 applicable law or 10 a wrilten waiver by Lender, Borrower shall pay
<br />to Lender on the day monlhly payments are due under the Note. unlillhe NOle is paid in full, a sum ("Funds") equal 10
<br />one-twelllh of. (a) yearly lUes Uld .........ents which may altain priority over Ihis Security Instrument; (b) yearly
<br />leasebold payments or ground rents on the Property, if UlY; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgqe inSllJ'aJ1CC premiums, if any. Th.... items are called "escrow ilems." Lender may estimale Ihe Funds due on the
<br />basis of current data Uld 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 />state agency (including Lender if Lender is such UI institution). Lender shall apply Ihe Funds to pay the escrow ilems.
<br />Lender may not charge for holding and applying the Funds, Ulalyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a 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 interest to be paid. Lender sball not be rec;uired to pay Borrower any interest or earnings on Ihe Funds. Lender
<br />shall give to Borrower, without charge, an annual lIl:COunting 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 Ihe fUlUre monthly payments of Funds payable prior 10
<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 hy Lender is not sufficienlto 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 hy Lender.
<br />Upon payment in fun of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 Ihe 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 atlhe time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. AppUeaIIoa of PaymenlL Unless applicable law provides olherwise, 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, 10 inleresl due; and last, to principal due.
<br />4. CItuaes; U..... Borrower shall pay all lUes, assessments, charges, fines and impositions allributable 10 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. Borrower 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 10 Lender
<br />receipts evidencing the payments.
<br />BolTOwer shall promptly discharge any lien which has priority over this Securily Instrument unless Borrower: (a)
<br />agrees in writing to the payment oflhe obligation 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 oftbe Property; or (c) secures from the holder nfthe lien an
<br />agreemenl satisfactory to Lender lubordinating Ibe lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject 10 a lien which may attain priority over this Security Instrumenl, Lender may give Borrower a
<br />notice ideutifying Ihelien. Borrower shall satisfy the lien or take one or more oftbe actions set forth above within 10 days
<br />of the giving ofnotice.
<br />5. Huard Inmnmee. BolTOwer shall keep the improvements now existing or hereafter erected on the Property
<br />insured againslloss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insunmce. This insurance shall be mainlained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen hy Borrower suhjecl to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renew'" shall be acceptable to Lender and shall include a standard mortgqe clause.
<br />Lender abaIl have the right to hold the policies Uld renew.... If Lender requires, Borrower shall promptly give 10 Lender
<br />all receipta ofpaid premiuOll Uld renewal notices. In the evenl of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof ofloss if not made promptly by Borrower.
<br />Unless Lender and Borrower olherwise agree in wriling, insurance proceeds shall be applied to resloration or repair
<br />of the Property dama&ed. if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economica1ly feasihle or Lender's security would be lessened, the insurance proceeds shall be
<br />appliellto the SUOll secured by thill Security Instrument, whether or not then due, ..ith any excess paid 10 Borrower. If
<br />Borrower abandons the Property. or does nol answer within 30 days a notice from Lender thai the insurance carrier has
<br />oIrered 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 SWIll secured by this Security Instrument, whether or nOlthen due. The JO.day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall notestend or
<br />postpone the due date of the monthly paymenls referred to in paragrapbs t and 2 or cbange the amount of the payments. If
<br />under paragraph 19 the Property ill acquired by Lender, Borrower's righllo any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the eslent of Ihe sums secured by this Security
<br />Instrument immediately prior to tbe acquisition.
<br />6. ~DD and Mmnteaaace ofProperJr; LeuHoIcIs. Borrower shall not destroy, damage or substantially
<br />chaqe the Property. allow tbe Property to deteriorate nr commit wasle. If Ihis Security Instrument is on a leasehold.
<br />Borrower abaIl comply with the proviiions of the lease, and if Borrower acquires fee title to the Property. the leasehold and
<br />fee titleaball not merge unless Lender aar- to the merger in writing.
<br />7. ProtectIoa of LeMer'a RIaIdo Ia tile ~ M........ I_ranee. If Borrower fails to perform Ihe
<br />covenants and agreementa contained illlbis Security Instrumenl, or there is a legal proceeding that may significantly alI'ecl
<br />Lender's rights in the Property (Iuch as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />reauJations), then Lendermay do and pay for whatever is necessary to protectlhe value of the Property and Lender's rights
<br />in the Property. Lender'. actions may include paying any sums secured by a lien which has priorilY over this Security
<br />Instrument, ~g in COUrt, paying reasonable allomcys' fees and entering on the Property 10 make repairs. Although
<br />Lender may take action under this paragraph 7, Lender does nol bavetn do so.
<br />Any amountsdisbuned by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instnmlent. Unless Borrower and Lender agree to olher terms of payment, these amounts shall bear in'eresl from
<br />the date of disbunemenl at tbe NOle rale and shall be payable, with inlerest, upon notice from lender to Borrower
<br />requestinl payment.
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<br />88_106333
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