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<br />liNII'l)RM COVEN^N rs Harrower nnd Lender covenant and IIgree us fnUow",: 88- 1 0 6 5 9 S
<br />I. Payment of Principal and In.crest; Prepayment nnd I~otc Chargel, Bnrrower shull prtln1plly PIlY when due
<br />the principal of and inlcrc.'il on the debl evidenced by Ihe Note and un}' prepayment llnd Inle chnrges duc under the Note.
<br />2, Funds ror Taxcsund Insurnnce. Subject 10 r1pplicablc luw or 10 u written waiver by Lender, Borrower shull Pu}'
<br />10 lender on Ihc duy monthl)' pllymcnl!-l ore duc under the Note, unlil the Note: is paid in full, a sum ("Funds") equal In
<br />onc-twelfih of: (a) yearly taMS ll11d nssessments which may attnln priority over this Security Instrument: (b) yearly
<br />leasel:old payments or ground rents on the Prop~rt}', ir nny; ec) yeerl)' hazard insurance premiums; and (d) yellrly
<br />mortgage insurance premiums, ifany. These items arc called "escrow ilems." lender may cstimntr the Funds due on the
<br />basis of current data and reasonable estimates of future escrow ilems.
<br />The Funds shall be held in an inslitution the deposits or account!. 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 poy the escrow items.
<br />Lender may not charge for holding and applying the Funds, llnalY:1:ing the Dccount 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 nnd
<br />Lender may agree in writing Ihot interest shoJI be paid on the Funds. Unless an agreement is mnde or applicable law
<br />requires interest to be paid, Lender shall nol be required to ('lilY 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 debiL'i to the Funds Ilnd the
<br />purpose for which each debit to the Funds was made. The Funds arc pledged os additional security for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />tbe due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrow~r's option, either promptly repaid 10 Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficient 10 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 tq the Property is sold or acquired by Lender, Lender shalJ 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 1ime of
<br />application as 0 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 I and 2 shall be applied: first, to late charges due under the Note; second. to prepayment charges due under the
<br />NOle; third, to amounts payable under paragraph 2; fourth. to intcrest due; and last, to principal due.
<br />4. Chargesj Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Propeny which may altain priority. over this Security Instrumen1. 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 lhis paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the paymenh-.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />-agrees in writing to the payment of the 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 of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrumenl. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priority ove:r this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the Hen or take one or more of the actions set forth above within to days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards 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 that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shaJl not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shoJi include a standard mongage clause.
<br />Lender shall have the right 10 hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />aU receipts of paid premiums and renewal notices. In the eve:nt of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof orloss if n01 made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shan be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economicalJy 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 not then due. with any excess paid to Borrower. If
<br />Borrower abandons the Propeny. or does nol 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, whether or not then due. The 3D-day period will begin
<br />when tbe notice is given.
<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 the amount of the payments. If
<br />under paragraph 19 the Properly 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 lo Lender to the extent of the sums secured by this Securily
<br />Instrument immediately prior to the acquisition.
<br />6. Prese"stion and Maintenance of Property; Leaseholds. Borrower shall not destroy. damage or subslanlially
<br />change tbe Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold.
<br />BorrowershaU comply with the provisions of the lease, and if Borrower acquires fee title to the Property, lhe leasehold and
<br />fcc.litlc: shall not merge: unless Lender agrees to the merger in writing.
<br />7. Protection of Lender.s Rights in the Propertyj Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding thai ma)' significantly affect
<br />Lender's rights in the Properly (such as a proceeding in bankruptcy. probate. for conde:mna1ion or to enforce: laws or
<br />regulations), then Lender may do and pay for whate\'er is necessary to prolecl the ,"alue oflhe Propeny and Lender's rights
<br />in tht: Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument. appearing in coun. paying reasonable attorneys' fees and entering on the Propef'.Y 10 make repairs. Although
<br />Lender may take: action undcr this paragraph 7, Lender does nOl hu\'c to do so,
<br />Any amount!> dlsbursed b~. Lender under Ihis paragraph 7 shall become addilional debt ofUllrrnwer ..ecured by this
<br />Secunl)i Instrumenl. Unless Borro"'er and Lender agree: to 01her tenns of payment. these amnunl!-l !-Ihall hear inleresl from
<br />the date of di"bu~men1 at Ihe NflIe rate and ..hull be payable. with IIIlerest, upon nOllce from Lender III BOTrnwC'r
<br />requestmg pa~'menl.
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