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<br />UNIFORM COVENANTS, Borrower .nd Lender coven.nt and .~ree 115 (ollows:
<br />I, Pay..... 0' PrI.clpal ODd Inlerest; Propa)'lllent and Lale CI1.rg.., Borrower shall promptly pay when due
<br />the principal orand interest on the debl evidenced by the Nole and any prepayment and lale charges due under the Note.
<br />2, Fu.ds for Tn.. ODd 1.lurance, Subject 10 applicable low or 10 s wrinen waiver by Lender, Borrower .hall pay
<br />10 Lmder on Ihe dlY monlhly paymenls are dUe under the Note, unllllhe Note i. paid in full, a sum ("Funds") equal 10
<br />one-.twelfth of: (8) yearly taxes Bnd assessments which may attain priority over this Security Instrument; (b) yearly
<br />leudlold payments or ground rent. on !hc Propeny, If any; (c) yearly hozard insurance prcmlums; and (d) yearly
<br />mortpae insurance premiums. ir any. These items are called "escrow hems..' Lender may estimate the Funds due on the
<br />basis of currenl data and reasonable eslimat.. offuture escrow ilems.
<br />The Funds shall be held in an Institulion the deposits or eccounts ofwhich er. insured Dr guaranleed by a fed.ral or
<br />.tate agency (including Lender if Lmder i. .uch an il1!lliIUlioll). Lend.r .hall apply Ihe Funds to pay the escrow items.
<br />Lmder may nOI charge for holding and applying th. Funds, analyzing the account or v.rifying the escrow it.ms, unl..s
<br />Lmder pay. Borrower int.resl on Ibe Funds and applicable law pennits Lender to make such a charge. Borrower and
<br />Lmd.r may agree in wriliitg thaI interesl shall be paid on Ihe Fund.. Unl..s an agreement is made Dr 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 />ahall give to BolTOwer. without charge. an annual accounting orthe Funds showing credits and debits to the Funds and the
<br />PIlJ1lOSO for which each debilto 1he Funds was made. Th. Funds are pledged ss additional security for the sums secured by
<br />1his Scc:urilY Imtrument.
<br />If 1h. amounl of the Funds held by Lmd.r, toge1her wilh the future monthly payments of Funds payable prior to
<br />tbe due dates or the escrow items" shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's cption, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount ofth. Funds held by Lmd.r is not sufficient 10 pay the escrow items when due, Borrow.r shall pay to Lend.r 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 Borrow.r
<br />any Funds h.ld by Lender. Ifund.r paragraph 19 the Propcny is sold or acquired by Lend.r, L.ndershall apply, no later
<br />1han immediately prior to the sale of the Propcny or its acquisition by Lend.r, any Funds held by Lender at the lime of
<br />application cs a credit against the sums secured by this Security Instrument.
<br />3. A,pDcatlon of PaymeutB. 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 the Note; second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2j fourth, to interest due; and last, to principal due.
<br />4. Caarges; lieu. Borrower shall pay aU 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, ir any.
<br />Borrower shall pay 1hese obligations in 1h. mann.r provided in paragraph 2, or if not paid in 1hat manner, Borrow.r shall
<br />pay Ihem on lime directly to th. person owed paymenL Borrower shall promptly furnish to Lmd.r all notic.. of amounts
<br />to be paid under Ihis paragraph. If Borrow.r makes these pa)'lllents directly, Borrow.r shall promptly furnish 10 Lmd.r
<br />receipts evidencing 1h. pa)'lllents.
<br />Borrow.r shall promptly discharge any lien which has priority over this Security Instrument unless Borrow.r: (a)
<br />agrees in wriling 10 1h. payment of the obllgalion secured by 1h. lien in a mann.r ac:ceptabl.lo Lmd.r; (b) contests in good
<br />faith Ihellen by, or d.fends agaimt enforcem.nt of Ihelien in, l.gaI proceedings which in Ih. Lender's opinion operal. to
<br />prevent the enforcement of Ihelien or forf.ilure of any part of th. Propeny; or (c) secures from the hold.r oflheli.n an
<br />agreement satisfactory to Lmder subordinating Ihe li.n to this Scc:urily Inslrument. If Lend.r d.tennin.. that any pan of
<br />the Propeny is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identif'ying the lien. Borrower sball satisfy the lien or take one or more or the actions set forth above within 10 days
<br />of the giving of noli...
<br />5. Hazard Insurauc:e. Borrower shall keep the improvements now existing or herearter erected on the Property
<br />insured agein.tloss by fire, hazards included within theleMn ....tended cov.rage" and any olh.r 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 sball nol be
<br />unrtllllOllably withheld.
<br />All imuranee policies and renewals shall be acceptable to Lender and shall includ. a standard mongage clause.
<br />Lmder shall have Ihe right to hold 1he policies and renewals. If Lender rcquires, Borrower shall promptly give 10 Lmdcr
<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 Lmd.r. Lmd.r may make proof ofloss if not made promptly by Borrow.r.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if tbe restoration or repair is economically feasible and Lender"s security is not lessened. If tbe
<br />restoration Dr repeir is nol economically feasible or Lmder's securily would be l....ned, th. insurance proceeds shall be
<br />applied 10 Ihe sums secured by this Security Instrument, whelh.r or not then du., with any...... 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 />1h. Propeny or 10 pay sum. secured by lhis Scc:urity Instrument, wh.ther or not then due. Th. 30-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 not extend or
<br />poslpon. the due dale of the monlhly payments referred 10 in paragraphs I and 2 or changelh. amount of the paymen". If
<br />under paragraph 191h. Propeny is acquired by Lender, Borrower's right to any insuranc. polici.. and proceeds resulling
<br />from damage.o th. Propeny prior to the ecquisition shall pass to Lend.r to Ih. ""t.nl of Ihe sums secured by this Scc:urity
<br />Imtrumenl immediat.ly prior to th. acquisilion.
<br />6.. Prese"adOD IIIld MaiutelUlDce of ProperJiJ; LeueboldL Borrower shall nol destroy. damage or substantially
<br />change the Property, aUow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply wilh Ihe provisions of1h.lease, and If Borrower acquires fee title to th. Properly, th.leasehold and
<br />fee title shall not merge unless Lender asrees to the merger in writing.
<br />7, Pratecllon 0' Lender'l Riahll in Ibe Properly; Morlllllge Imurance. If Borrower fail. to pcrfonn the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />reauJ.ations), then Lender may do and pay for whatever is necessary to protect the value of the Propeny and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lendermay take action under tbis paragraph 7, Lender does not have to do so,
<br />Any amounts disbuncd by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Securily Instrumenl. Unless Borrower and Lender agree to other terms of paymenl. these amounts shall bear interest from
<br />the date of disbursemenl at the Note rate and shall be payable, with inleresl. upon notice (rom Lender 10 Borrower
<br />requadng payment.
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<br />106701
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