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<br />UNIFORM COVEN^NTS. Borrower and Lender covenant ond agrce us follows:
<br />I. Paymenl of PrIncipal and Inlerest; Prepayment Ind Lale Charges. Borrower shall promptly pay when due
<br />the principal orand interest on the debt evidenced by the Note and any prepayment and late chargcs due undc:, the Note.
<br />Z. Funds for TUell and Insurance. Subjeclto applicable law or to u written waiver by Lender, Borrower shall puy
<br />to Lender on the day monthly payments arc due under the Note. until the Note is paid in full, a sum ("Funds") equal to
<br />onc.tweInh of: (a) )'early taxes and asscssments which mny attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground renU on the Property, if any; (c) yearly hnzard insurance premiums; and (d) yearly
<br />mortgage insurance premiums. if any, These items are called uescrow ilems." Lender may estimate thc Funds due on the
<br />basis ofcurrent dota and reasonableestimBtes oHuturc escrow items.
<br />The Funds shall be held in an institution thc deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds. analyzing 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 shall not be required to pay Borrower any inlerest or earnings on the Funds. Lender
<br />shall give to Borrower. without 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 ore 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 the future monthly payments of Funds payable prior [0
<br />the due dates of~he escrow items, shall exceed the umount required 10 pay the escrow items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited 10 Borrower on monthly payments of Funds. If the
<br />amounl of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amounlllecessary 10 make up the deficiency in one or more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Securily Instrument, Lender shall promptly refund 10 Borrower
<br />any Funds held by Lender. Irunder paragraph 19 the Property is sold or acquired by Lender, Lender shall 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 time of
<br />application as a credit against the sums secured by [his Security Instrument.
<br />3. Application 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 NOle; second, to prepayment charges due under the
<br />Note; third. 10 amounts payable under paragraph 2; fourth, to interest due; and last, 10 principal due.
<br />4. Charges; Liens. 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 shaH 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 directl).', Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptJy 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 />agreemenl satisfactory to Lender subordinating the lien to this Security Inslrument. If Lender determines that an).' part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument. Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 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 mainlained 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 nol be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to lendl,.'r and shall include a standard mortgage clause.
<br />Lender shaU have the right 10 hold the policies and renewals. If Lender requires. Borrower shall promptly give to 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 orIoss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to resloration or repr..ir
<br />of the Property damaged, if the resloration or repair is economicoUy 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 Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to seltle 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 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 nol 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 19the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage 10 the Property 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 />6. Prese"stion and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Propeny. allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />8orrowershall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title 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 />COVCilants and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly atfecl
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate. for condemnation or to enforce laws or
<br />regulations), then lender may do and pay for whatever is necessary 10 protecl the value of the 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. appearing in court. paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under this paragraph 7. Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />'Securily Instrument. Unless Borrower and Lender agree to other terms of payment, these amounlS shall bear interest from
<br />the dr-te of disbursement al Ihe Note rate and shan be payable, with interesl. upon oolll:e from Lender 10 Borrower
<br />requesting paymenl
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