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UNIFORM 1COVENANTS. Borrower and Leader covenant and agree as follows;
<br />1, Payment of ipttl sod Ia t; Prollasymutiat and if alts Charges, Borrower shall promptly pay when due
<br />the principal of and interest on the evi ced by the Note and any prepayment and late charges due under rite I+1ole.
<br />3. FisitulsbrTaxessullwarance. Sub*t tot applicable law or to a written waiver by bender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Mote is paid it) full, a sum ( "Fund% ") equal to
<br />t h of; (a) yearly taxes and assessments which may attain priority over this purity instrument; (b) yearly
<br />payments or ground reacts on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />martlitaille insurance premiums, if any, These items are called "escrow items," Lender may estimate the Funds due on the
<br />basisof current 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 />agency state (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Leader may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Losinder 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 Burrower 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 �ccnrity 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 he,
<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 10 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 !c the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as 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 he applied: first, to late charges due under the !rote; 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, • 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.
<br />Borrower shalt 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 hen which has priority over this Sccurns Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the hen in a manner acceptable to Leader; (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Iender'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. BOrrowcr shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />or'the giving of notice.
<br />S. Hazard Insurance. &grower 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 an-, other hazards for which Lender
<br />requires insurance. This insurance shall he 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 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 />carrier and Lender. Lender may make proof of loss ,f not made promptly by Birroawer.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or repwr
<br />of the Property damaged, if the restoration or repair is economically feasible aid 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 settle a claim, them Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or uo 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, Borrowers right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender ur the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />C pragirvisitmis oW Nitausswassact of Property; Lessebolds. 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 />rower %hall comply with the provisions of the lease, and if Borrower acquires fee title to the Property. the leasehold and
<br />for title shall nm male unless i -ender agrees to the merger in writing.
<br />7. of Le r% Bights in the Property-. Mortgage insurance. If Borrower fails to perform the
<br />f% acid apternicnis contained Its this Security Instrument, or there is a legal proceeding, that naay significantly itt'ec t
<br />I , r'% rights in the f fop erty (such as a procceding in bankruptcy, ptobate, for c ntictrinaliln or to enforce IAw1 or
<br />ivjvk4wn%j, then Urmler may do and pay for whatever is necessary to protect the %,title of the Property anal Lender', rights
<br />is the Property l.e '% actions ntay include paying any sums cured by a lien which has prtorn% over this Sccurny
<br />firstrument, &ppe.siting in courl. paying reasonable attorneys' fee%arid entering on the Property to make repaatrs Although
<br />I y tske aacrro>n tinder lftts paragraph 7, Lender dates not ha%c soffit so
<br />Any amounts disbursed by Lender under this paragraph 7 shall pecome addil oriai eleht of I#„rr.•soer se nucd h} this
<br />Security in4frursa t Unless Basrrarwer and Lender agree Ice tither lernis of rmtrieril, thcse;amawnts shall heal nitrto^sa loom
<br />the daft of dionsrseirwrit at the elrste rate and %hall he payable. with nlcoeM, tit-11 noliir how 1 ender t,t 11,11wk%cl
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