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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 87 101708
<br />1. Payment of Principal and interest; Prepayment and Late Charges. Borrower shall promptly pay when due the
<br />principal of and interest on the debt evidenced by the Note and any prepayment and tare charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to
<br />Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
<br />one - twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold
<br />payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance
<br />premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the basis of current data and
<br />reasonable estimates of future 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 an institution). Lender shall apply the Funds to pay the escrow items. Lender
<br />may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays
<br />Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in
<br />writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds_ Lender shall give to Borrower, without
<br />charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the
<br />Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the
<br />due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shalt be, at
<br />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 Leader.
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any
<br />Funds held by Leader. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than
<br />immediately prior to the sale of the Property or its acquisition by Leader. any Funds held by Lender at the time of application
<br />as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicabic !mow 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 />Nore; third, to amounts payable under paragraph 2; fourth, to interest due. and last to principal due.
<br />3. Charges; Liens. Borrower shall pay all 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. Borrower
<br />shall pay these obligations in the manner provided in paragraph 2, or if trot paid in that manner, Borrower shall pay them on
<br />time directly to the person owed payment Borrower shalt promptly furnish to Lender All notices of amounts to be paid under
<br />this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing
<br />the payments. -
<br />Borrower shall promptly discharge any hen which has priority over this Security Instrument unless Borrower. tat
<br />agrees in writing to the payment of the obligation secured by the hen m 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 parr of the Property; or (c) secues from the holder of the lien an
<br />agreement satisfactory to Lerider subordinating the lien to this Security Instrument- if Lender determines that any part of the
<br />Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice
<br />identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 14 days of the
<br />giving of notice. l
<br />5. 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 tax be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceprable to Lender and shall include a standard mortgage clause. Lender f
<br />shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts
<br />of paid premiums and renewal notices. In the event of loss. Borrower shall give prompt notice to the insurance currier and
<br />Lender. Lender may make proof of loss if not made promptly by 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 econonticalh• feasible and Lenders security- is not lessened. If the
<br />restoration or repair is not economically feasible or Lenders 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 rnitice 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 the
<br />Property or to pay sums secured by this Security Instrument, whether or not then due_ The u1-day period will begins hen the
<br />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 Property is acquired by Lender, Borrower's right to any insurance policies and pncreds resulting
<br />from damage to the Property prior to the acquisition shJI pass to Lender to the extent of the sums secured by this Secur ire
<br />Instrument immediately prior to the acquisition,
<br />6. Preservation and Maintenance of Property. Leaseholds. Borrower shall not destroy, damagr or substanriaay
<br />change the Property, allow the Property n) deteriorate or commit waste_ If this Security Instrument is on a ieaseh(Ad.
<br />u„t b=11 , i. the o f rh lease. f -ee - i -I--
<br />.rower s,.,.. ,.u`np ::with ._.� provisions �,- , r zse. and if °ern ;wet acquires �tt:e tz} i Praxrtt, tFic inscfrtd a;sti
<br />fee title shall not merge unless Lender agrees to the merger in writing, �-
<br />7. Protection of Leader's Rights in the Property; Mortgage Insurance. If Borrower fails ro perform the covenants
<br />and agreements contained in this Security Instrument or there is a legal proceeding that may significantly affect Lenders
<br />rights in the P"��ropert) i such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regulations), then
<br />lender may uyt and pay for whatever is necessary to protect the value of the Property and Lenders rights in the Property
<br />Lender's actions may include paying any sums secured by alien which has priority over rhisSecuriry Instruntentappearing in
<br />court, paying reasonable attorneys' fees and entering on the Property to make repairs Although Lender may rake action !
<br />under this paragraph 7, Lender does not have a) do so. -
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument Unless Borrower and [ender agree tai other terms of payment, these amounts shalt bear interest from
<br />the date of disbursement at the Note rare and shall he payable, with interest, upiin norite from Lender to Borrower requesting,
<br />paymeot
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