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UNI"M COVENANI'S. Rorrower and Lender vovenool and agree as follows:
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<br />1. Payment of Principal and Informilt Prepayment and Late Charges, Borrower shall promptly pay when due
<br />the principal oracrd interest on the debt evidenced by the Note and any prepayment and late charges cl ue cinder the Note.
<br />2, Fsl Tsai rind 1 Subject to applicable law or to a written waiver by lender, Borrower shalt pay
<br />to Landair our the day monthly payments are due under the Norte, until the Note is paid in full, a sure► ( "Funds") equal to
<br />one- twelfth ccf; (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />kwbM payments or ground rents on the Property, if any, (c) yearly hazard insuranvc premiums; and (d) yearly
<br />martSW assurance premiums, if any. Thm items are called " csvrow items." Lender may estimate the Funds due ore► the
<br />G basis ofourroat data and reasonable a stimaw of fut ure wrow, 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 />std artakey (including Lender if Leader is such anInrstitution), Lender shall apply the Funds to pay the owrow items.
<br />Leader may 'not charge for holding and dying the Funds, analyzing the account or verifying the escrow items, unless
<br />Leader pays Borrower interest on the Fug and applicable law peralim 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 />room interest to be paid. Lender shall not he required to pay Borrower any interest or earnings on the Funds, Lender
<br />shah 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 o f 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 Mall 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 />i. Charges; l.iera. 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 shalt
<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 Borrower: (a)
<br />agrecxs 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 defend; 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 Loader 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 noice.
<br />S. 1Howd leaurante. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against Iota by Are, 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 be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shag have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums anti renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carries and Lender. Lender may make proof of loss Knot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />tithe Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is W 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, 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 mice 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 14 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />firoadaimage to the Property pry to the acquisition shall }ass to Lender to the extent of the sums secured by this Security
<br />Irstrurrrit immediately pear to the acquisition.
<br />f. Ptoeuvatim tad M of Property; L *K*oW& 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 />doe sitksholl am merge unfit Lender agrees to the merger in writing.
<br />7. Protection of Lender's RIOU In dte Property; Mortipille Insurance. If Borrower fails to perform the
<br />sad agreements containd in this Security instrument, or there is a legal proceeding that may significantly affect
<br />Leader's row in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), Lender may do acrd pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Leader's actions may include paying any sums secured by a lien which has priority over this Security
<br />huerament, appearing In court, paying attorneys' fees and entering on the Property to make repairs. Although
<br />Leader any take tctun under the paragraph 7. Lender does not have to do so.
<br />Any amounts disbuned by Lender under this paragraph 7 shall become additional debt of Borrower secured by Ihis
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
<br />the daft of distakrumsent at the Note rate and shall be payable. with interest, upon notice from Lendet to Burrower
<br />reiplesteas ha t.
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