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<br />UNIFORM COVENANTli. Borrower and Lender covenant and Dsr...s fnllows:
<br />I, Paymonl of Prlnelpal and Intornt; PrepaYMont and Late Chars... Borrower shall promptly PDY when due
<br />the principal orand intcrest on the debt evidenced by the Note and any prepayment and Jale charges due under the Note.
<br />2. Fuuds tor Tun mad Insurance. Subject 10 applicable law or to II written waiver by Lender. Borrower shall pay
<br />to Lender on the day monthly payments arc due under the Note, until the Note 15 paid in full, 0 sum (UFundslt) equal to
<br />one-twelfth of: (8) yearly taxes sod assessments which may attain priority over this Security Instrumentj (b) yearly
<br />leasehold payments Dr srnund rents on Ihe Property, if Dny; (c) yeariy hazord insurance premium.; and (d) yearly
<br />mUr1plJe insurance premiums, if any. These hems are called .Iescrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estim'!1tes of future escrow items.
<br />The Funds shall be held in an institution the deposits or Bccounts or which Bre insured or guaranteed by a federal or
<br />.lIte agency (including Lender if Lender is such an institution). Lender shall apply the Fund. to pay the escrow ilems.
<br />Lender may nO[ charge far holding and applying tile Funds, analyzins the eccount or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Funds Bnd applicable law permits Lender to make 5uch a charge. Borrower Bnd
<br />Lender may asree in writing that interest shan be paid on the Funds. Unless an asr..menl is mDde or 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 />Ihall live to Borrower, ,,:,ithout 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 are pledged as additional security for the sums secured by
<br />this Securily Instrument.
<br />If the omount oftbe Funds held by Lender, tosether with thefuture mouthly payments of Funds pDYDhle 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 shaD promptly refund to Borrower
<br />any Funds held by Lender. If under parasraph 19 the Property is sold or acquired by Lender, Lender shall Dpply, 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 />applicalion as a credit against the sums secured by this Security Instrument.
<br />3. ApplicatiOD or 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 />Note; third, to amounts payable under paragraph 2i fourth, to interest due; and last, to principal due.
<br />4. CIarges; lJeDl. 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, if any.
<br />Borrower shaD pay these obligations in the manner provided in paragraph 2, or ifnot paid in that manner, Borrower shaD
<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 shan promptly furnish to Lender
<br />receipts evidencing the payments.
<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 Instrument. If Lender determines that any pan of
<br />the Property is subject to a lien which may Dtllin priority over this Security Instrument, Lender may give Borrower a
<br />notice id:mtifying the lien. Borrower shall satisfy the lien or take one or more or the actions set fonh above within 10 days
<br />of the givins ofnotice.
<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 shall not be
<br />unreasonably withheld.
<br />. All insurance policies and renewals shall be a=pllble to Lender and shan include a standard mortgase clause.
<br />Lender ahall have the right 10 hold the policies and renewals. If Lender requires, Borrower shall prompUy give 10 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 ofloss if not made promptly hy 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 Dnd 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 not answer within 30 days a notice from Lender that the insurance carrier has
<br />otret'ed to settle a claim, then Lender may collcet the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay .urns secured hy this Security Instrument, whether or not Ihen due. The 3o.day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application or proceeds 10 principal shall not extend or
<br />postpone tbeduedate orthe monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by I,eoder, Borrower's right to any insurance policies and proceeds resultins
<br />from damaBe to the Propeny prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />a. Prelenltloa aDd Maintenance of ProperJiY; Leueholda. Borrower shall not destroy, damage or substantially
<br />chanae the PropenYl allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower IhlUcomply with the provisions of the lease. and if Borrower acquires ree title to the Propeny, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rlabtl in tbe Property; MortpKe Insurance. If Borrower rails 10 perfonn the
<br />covenantl and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender'I rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />rqulationl), then Lender may do and pay for whatever is necessary to protect the value orthe Property 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, appcarina in count paying reasonable attorneys' fees and entering on the Propeny to make repairs. Although
<br />Lender may take action under this paragraph 7. Lender docs not have to do 50.
<br />Any amounts disbuncd by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Inltrument. Unless Borrower and Lender agree to other terms of payment, these amounls shall bear in[erest from
<br />tbe date of disbursemenl al the Note rate and shall be payable. with intercst, upon notice rrom lender to Borrower
<br />requestin. payment.
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<br />BB- 106761
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