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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows
<br />1, Payment of Principal and Interest; Prepayment and late Charges. Borrower Shall promptly pray when due the
<br />principal of and interest on the debt evidenced by the Nine and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance, Subject to applicable law or ter it written waiver by Under, Borrower shall pay to
<br />Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ( "Funds') equal to
<br />CHIC- twelfthof: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold
<br />payments orground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance
<br />premiums, if any. These items are called "escrow items." Lender may estimate the Funds duc on the basis of current data and
<br />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 />state agency ( including Lender if Lender is such an institution). lender shall apply the Funds to pay the escrow items, lender
<br />may not charge for holding and applying the Funds, analyzing the account or verifying the escrow irems, unless Under pays
<br />Borrower interest on the Funds and applicable law permits Under to make such a charge. Borrower and Lender may agree in
<br />writing that interest shall be {laid on the Funds. Unless an agreement is made or applicable law requires interest to he paid,
<br />Lender shall not be required to pay Burrower any interest or earnings on the Funds. Lender shall give to Borrower, without
<br />charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the
<br />Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument.
<br />If the amount of the Funds held by lender, together with the future monthly payments of Funds payable prior to the
<br />due dates of the escrow items, shall exceed the amount required ur pay the escrow items when due, the excess shall be, at
<br />Borrower's option, either promptly repaid n) Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the Fonds held by fender 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 nt Burrower any
<br />Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than
<br />immediately prior u) the sale of the Property or its acquisition by Lender, any Funds held by lender at the timeuf application
<br />AS a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides orherwise, all payments received by lender under
<br />paragraphs 1 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 interest due; and last, to principal due.
<br />4. Charges; 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 around rents, if any. Borrower
<br />shall pay these o liiligations in the manner provided in paragraph 2,or if not paid in that manner, Burrower shall pay them on
<br />time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under
<br />this paragraph. If Borrower makes these payments directly, Burrower shall promptly furnish nr Lender receipts evidencing
<br />the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Burrower: (a)
<br />agrees in writing to the payment of t he 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 the
<br />Property is subject to a lien which may attain priority over this Security Instrument, Under may give Borrower a notice
<br />identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the
<br />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 Under 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. Lender
<br />shall have the right to hold the policies and renewals. If Ixnder requires, Burrower shall promptly give to Lender all receipts
<br />of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and
<br />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 ur 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 tender'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 narrower. if
<br />Borrower abandons the Property, or does not answer within 30 ,lays 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 the
<br />Propertyor to pay sums secured by this Security Instrument, whetheror not then due. The 30 -day period will begin when the
<br />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 />6. Preservation and Maintenance of Property; Leaseholds. 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. Protection of Lender's nights in the Property; Mortgage Insurance. If Burrower fails to Perform the covenants
<br />and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's
<br />rights in the Property (such as a proceeding in bankruptcy, probate, for cmndemnat ion or it) enforce laws or regulations), then
<br />Under may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property.
<br />Lender's actions may include payingany sums secured by a lien which has priority over this Security Instrument, appearing in
<br />court, paying reasonable attorneys' fees and entering on the Property u, make repairs. Although Lender may take action
<br />under this paragraph 7, Lender dues riot have to do so
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Burrower secured by this
<br />Security lnsrruirtent. Unless Borrower and Lender agree mother terms of payment, these imounts shall bear inicrest from
<br />nhedatcrof disbursement at the Note rate and shall be payable, with interest, ulxwn notice from Lender to Burrower recluesung
<br />payment
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