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<br />UNIhdtRM C"OVENAN IS Wrrawer and Landar covenant and agrce as follows:
<br />I. Payment of Principal and lint~; Prepayment and Late Charges, i orrower shalt promptly pay when due
<br />the principal of and interest on the debt evidvnivad by the Note and any prepayment and late charges clue under the Note.
<br />2. FundiforTaximandlasonwit, 'Subject to applicable law or to a written waiver by lender, Borrower shall pay
<br />to Leader on the day monthly payments are due under the Mote, until the Mote is paid in full, a cunt ("F'nnrlti ") equal to
<br />t -tw h of: (a) yearly taxes and a "tments which may attain priority over this purity instrument, (b) yearly
<br />lasacholirl pay nts or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly,
<br />mortgage insurance premiums, if any. Thew items are call - row items." lender may estimate the Funds due on the
<br />basis of c urrent data and reasonable estimates of put ure escrow items.
<br />The Funds shall he held in an institution the deposits or accounts; of which are insured or guaranteed by a federal or
<br />agency (including Lendtr if Leader is such an institution). Lender shall apply the Funds to pay the �s raw items.
<br />Lander may not charge for holding and applying the Funds, analyzing the account or verifying the owrow items, unless
<br />Leader pays Borrower interest on the Funds and applicable law permits Lendcr to make such a charge. Borrower artd
<br />Lender may ague in writing that interest shall he 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 nn 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
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<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 hell 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. U under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply. no later
<br />than immediately prior to the We 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 last rumens,
<br />& Applkatiaa 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 Mote; 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. Cbnrm Leos. 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 he paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Brrower 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 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 lien to this Security Instrument. If Lender determines that any part of
<br />the Property is sulliject 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 cif the actions set forth above within 10 days
<br />of the giving of rutice.
<br />S. iii lawrance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire. hazsrds included within the term "extended coverage" and any other hazards for which Lender
<br />spores 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 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 o(pai d premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Leander may matte proof of loss if nit made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he 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 rear is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the shams 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 seek a claim, theft 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 />Unkss 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 />frtmt 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 />C Preseemkin asses Matieftnence of Property; Lesisebaillft. Borrower ;halt not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or emit waste. If this Security instrument is on a leasehold,
<br />Borrowershishconaply with the provisions of the lase, and if Brrower acquires fee title to the Property, the leasehold and
<br />lee t not merge indess, Lender Woo to the merger in writing.
<br />7, PMWCOW of Leader's Mob is fire Property; Mortgage insurance. If Borrower fails to perform the
<br />covenants and is contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />'s rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then L.etder may do and pay for whatever is necessary to protect the value of the Property and fender's rights
<br />in the Properly. 's actions may include paying any sums secured by a lien which has priority over this Security
<br />L Leader 1 appearing in court. paying reasonable attorneys' fees anal entering on the Property to make repairs. Although
<br />may take "Iwo under the paragraph 7. Leader does not have to do so.
<br />Any amounts disbursird by Lender under this paragraph 7 shall become additional debt of Borrower wcured by this
<br />Security Insit unlem, Unless, ewer and Leader agree to other terms of payment, these amounts shall hear interest from
<br />00 dot of dobursement at the !Vote rate and shall be payable, with interest, upon notice from I ender to florroaer
<br />Payment
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