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<br />UNlttnaM CewfNANTS tmrrower and Lender covenant and agree as follows:
<br />1. Payment of Principal SW Inlereal; 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 ehar$cs due under the !" oic
<br />2. Funds for Taxes arial Insurance. Subject to applicable law or to a% i men waiver by I ender, llorro%er %hail pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds ") equal to
<br />onai-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument: (b) )earl)
<br />legaselkold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly,
<br />moini insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds shall be hold 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 />Leadoir 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 he 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 />U 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 />ansount 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 Fumes 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 1 and 2 shall be apples: 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 dire; and last, to principal date.
<br />g. ClisaVi; Liters. Borrower "I 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 Security Instrument unless EP:,nower: (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 />agreemmi 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. Hazard Inaaratee. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against kiss by fire, hazards included within the teen -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 nor be
<br />unreasonably withheld.
<br />All insurance 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 />causer and 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 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 ibis Security Instrument, whether or not then due, with any excess paid to Borrower. if
<br />Borrower abandons the Property, or does not answer within 10 days a notice from Lender that the insurance earner has
<br />offered 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 tender, Borrower's right to any insurance policies and proceeds resuhang
<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 />i, Preservation and MadManance of Property; Borrower shall not destroy, damage or substanitally
<br />change the Property. allow the Property to deteriorate or commit waste. If this Security instrument is on a leasehold,
<br />fliorrower shall comply with the provisions of the least, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee bite *all bud merge unless r agrees to I he merger in writing.
<br />1, ProWfion, tW Lotodiars RIOM In the Property; Mortgage Insurance. If Borrower faits to perform the
<br />to and agreements contained in this Security instrument, or there is a legal proceeding that may significantly ;affect
<br />Lender'p, rights in the Property (such as a proceeding in bankruptcy, probate, for condemnalion or to enforce laws or
<br />regulations), then Lemlef may do and pay for whatever is necessary to protect the value of the Prulerty and Letvdrr'% rights
<br />in the Property L is actions may include paying any sums secured by a lien which has primly over thy, Secutn,
<br />Instrument. appeal" in court. paying r+t attorneys' free and entering on the Properly to make repair% although
<br />Lender y take action under this paragraph 1, Lender does not have to do wi
<br />Any amosints dobursed by Icn&r under this paragraph 1 shall become additional debt of Hotrowet se, ured nil it:,.
<br />unary 1 r t Un rower and Fender agree its other terms of payment, these Amounts shall brat iiiwtc%i ft,uta
<br />the date tai' disbursement at the Note rate anti %hall he poyable, with interest, urtou noia.e ffom i eider to ln,,,to%vt
<br />r roil pay t
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