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UNiFORMCovENANTS. Borrower and Lender covenant and agree as follows: 87-- 142874
<br />1. Payment of Principal and lntereesh Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insarance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender cm the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
<br />otnc•twelhh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (h) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mOrtPV insurance premiums, if any. These items are called "escrow items," Lender may estimate the Funds due on the
<br />basis ofcurrcni data and 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.
<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 />Leader 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 interest 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 are 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 paycble 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 Borrowers 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 shall promptly refund to Borrower
<br />any Funds held by Lender. if under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to the sae 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 this Security Instrument.
<br />3, Appiigtiat of paynteats, Unless applicable law provides otherwise, all payments received by Lender under
<br />S' 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 2; fourth, to interest due; and last, to principal due.
<br />4. Cl ;curia. 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.
<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 or, 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 shall 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 ;condor'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 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. Heard latariuee. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against kiss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires mentrarice. 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 Lenders approval which shall not be
<br />uttrellbatably withheld.
<br />All ififtnume policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender Shall have the right to 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 />earner and Lender. Lender may make proof of tors if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied cc) restoration or repair
<br />Of the Property damaged. if the restoration or repair is economically 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 />ollemd to settle a claim, then Leader may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property 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 wid 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 1 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 proceeds resulting
<br />ftorn damage to 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 />s• praarrertim and Nfsintenanee of Property; Imo. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Properly to deteriorate or commit waste. If this Security Instrument is on a leasehold.
<br />Borrower shall comply with the Provisions of the lease, and if Borrower acquires fee title to the Property. the leasehold and
<br />fie title 511111 not merge unless lender agrees to the merger in writing.
<br />7, Ptasetliso of Lender's RiOts in the Property: Mortgage Imwranee. If Borrower fads to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lehtdct's rights in the Properly (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations). then Lender may doand pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property' Lender's acts may include paying any sums secured by a lien which has priority over this Serunty
<br />L lrtarepnent, aMitring in court, fraying relsmnablc attorneys' fees and entering on the Property to make repairs Although
<br />tmider may take actiom u�r 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 t his
<br />Seeunt irutnent. Unless Borrower and Lender agree to other terms of payment, these amounts shall beat ntcrest fromm
<br />the disie of disbursement at the Note rate and shall he payable, with interest, upon notice from Lender to Borrower
<br />pay—'
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