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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 87 102930
<br />i, Piyssleat of Prnciw and lawresh Prgmytneat aid Late Charm. Borrower shall promptly
<br />the Principal of and interest on the debt evidenced by the Note and an re charges P P Y under the Note,
<br />when due
<br />b _ Finite far Taxes and lasurturee, Subject to applicable law or to prepayment
<br />ten waiver byl nder, Borrower shall pay
<br />to Leutder out the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds ") equal to
<br />orte- tweifth of: (a) yearly taxes and assessments which may attain priority over this Security instrument; (b) yearly
<br />insurance or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and d
<br />O yearly
<br />premiums, if any. These items are called "escrow items." bender may estimate the Funds due on the
<br />brittle of current data and reasonable estimates of future escrow items.
<br />The Funds shall I?e held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state try (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 />Leader 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 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 payable 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 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 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 this Security instrument
<br />3. Application of 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 2; fourth, to Merest due; and last, to principal due.
<br />g. Charges: Was. 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 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 shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly, discharge any lien which has priority over this Secunty 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 hen to this Security Instrument. If Iender determines that any part of
<br />the Property is subject to a hen 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 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 he 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 />carrier and Lender, Lender may make proof of foss 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 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 />ofered to settle a claim, then Lender 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 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 proceeds resulting
<br />from 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 />d. Presen'a'wn and Maiateaaaee of Prepao; [.twholds Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property 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 />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Proteetion of Leaders Rights in the Property; Mortgage insurance. If Borrower fails to perform the
<br />covemm'sand agreements contained in this Security Instrument, or there i%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 />regulel), them Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lender's actions may include
<br />Isptruntertt, appearing en court, laying any sums secured by a lien which has priority over this Security
<br />Leader paying reaumabie attorneys' fees and entering on the Property to make rePair% Although
<br />may take action under this paragraph 7. Lender does not have to do so Any amounts disbursed by Sact►rity instrument- Unless Borr;owcr andu Lender h grreeeto other terms �paym nt. these amounts shall bear nterestrfrom
<br />the tote g ay."setntnt at the ,dote rate and %hall be payable• with interest, upon notice from Lender to Borrower
<br />r ing paymcnt-
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