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UNIFORNCOVENANIS Borr,�werandLendercoivr�am ar :d.aer ;� .I, = :. �'r�. u, gs�. 10239`-
<br />1. Payment of Principal and interest; Prepayment and Late Chartres. K.': ,,v, r ,h'll! pn,mpth pay M1,11 ,iauc
<br />the principal ofand interest on the debt evidenced by the Notes and:,ny preps% n,enr .In,t l,tc , h.,rgr, Jae under the \otc.
<br />2. Funds for Taxes and Insurance. Subject tnapplic: ahtrfawnrtn:,•,e nUCr. wencrh ylclnder,Borrawel-Ola'lpay
<br />to Lender on the day monthly payments are due under the Note. until the Nl,te 1, p:uu — full. a ,um (- 'Funds" I equ<,l t.,
<br />one - twelfth of (a) yearly taxes and assessments which may ailmn priorir} o.er this Security Insn.nrent (ht Nearly
<br />leasehold payments or ground rents on the Property, if any let yearly har:ard insurance prennum,: and (di ceZid
<br />mortgage insurance premiums, if any. These items are called "escrow uem%." Lender may e,tlmate the Fund, due rut the
<br />hasisofeurrent data and reasonable estimates of future escrow items.
<br />The Funds shall he held in an institution the deposits or accounts orwhich are insured or guarntecd by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender ,hall apply the Funds to pay the escrow items.
<br />Lender 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 he paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to he paid, Lender shall not he required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Fund, ,hawing credits and dehits 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 sulns secured hx
<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 payment, of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when (life. Borrower shall pay to Lcndcr all,
<br />amount necessary to make up the deficiency in one or more payments as required by Lender.
<br />Upon payment in full ofall 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 hall 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 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 anrihutahle to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rent,. if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if riot paid in that manner. Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to (..ender all notices of.unounts
<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 lnstrument unless Borrower (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender: (h) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender', opinion operate u,
<br />prevent the enforcement of the lien or forfei. -ire of any part of the Property; or (c) secures front 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 giyc Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the action, ,ci firth :above within 10 da_ss
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now .xistino, or hereafter erected on the Propern
<br />insured against loss by fire, hazards included within the terns "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall he maintained in the amounts and for the period,, that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower suhiect to Lender', approe;,l which shall not he
<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 [ender requires, Borrower ,hall 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 in SUnallce
<br />carrier 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 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 repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall he
<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 />o0ered 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 payment,. 11
<br />under paragraph 19 the Property is acquired by Lender. Borro-,ver's right to any Insurance policies and proceeds resttiting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sunu,eeured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower,liall not dc,noy, damage or stthsianttally
<br />change the Property, allow the Property to deteriorate or commit waste. if this Security in,tr(rnent is on a Iea,chold.
<br />Borrower shall comply with the proytalons of the lease, and if Borrower acquires fee title ill 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 Rights in the Property; Mortgage insurance. If Bono%%er flail, to perfiornt illy
<br />covenants and agreements contained in this Security htstrument• or there is a legal proceeding that may ,tgnificantly alrect
<br />Lender's rights in the Property isuch as a proeeding in bankruptcy. probate. (or conden,nauon or to enti,rrr law, or
<br />regulations), then Lender stay do and pay tier whatever is necessary to protect the o aluc of the• Property and Lender', rtghn
<br />in the Property. Lender's actions may include paying any sums secured by a lien which ha, piwmn oecr 1111, Seeurlly
<br />Instrument. appearing Ill court. pacing reasonable attorneys' fees and entering on the Propem 10• make repair, Ahhoueh
<br />Lcndcr may take action under Ihis paragraph '. Lcndcr does not ha,e to do ,o
<br />Any amounts disbursed by Lendcr under this paragraph "hall he"'ITIC addrllonar dcht M Bo1 n"w, • ,re,urd h% 1 hn,
<br />Sccurny Instrument. Unless Borrowerand 1- enderagreetoothcr Irrm.,,fpasn,rnl.'hr,e eniour t,,hali 11,.11 m1rl,.n inns
<br />the date of dishurwurrnl at the Note laic and ,hall he• pa�,lhle•. with 1ntrlr,;, ul, nI n „n . In,m 1 .n,':c1 tt, tone r!
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