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UNIFORM COVENANTS Borrower and Lender covenant and agree as follow-,- 86— 102810
<br />1. Psytseat of Principal and laterettt; Prepsyment and Late Charges. Borrower shall promptly pay when due
<br />the principal ofand interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Fends for Taxes and Iawarsnce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
<br />one- twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument. (b) yearly
<br />leasehold payments or ground rents on the Property, if any; ic) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums. if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis ofcurrent data and reawnable 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.
<br />Leader 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 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 Borrower 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 s 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 of the Funds held by Lender is not sufficietu to pay the escrow items when due, Borrower shall pay it) 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 a( 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 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 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 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 />agrees in writing to the payment of the obligation secured by the hen in a manner acceptable io Lendcr; (b) contests in good
<br />faith the lien by, or defends against enfx;icement 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 pan 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. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the 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 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 tnay make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, tn,urance 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 be
<br />applied to the sums secured by this Sce utity 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. tender rna,, 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 pay rents. If
<br />udder 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 ,ec ured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall nor destroy, dam n
<br />age or sub,tatially
<br />change the Proipeny, allow the Property to deienorate or commit waste If this Security Instrument is nn a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee titic 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 Rights in the Property; Mortgage Insurance. If Borrower Faits to perforri :hc
<br />covcuantsand agreementso,?ntained in this Security Instrumew, or there is a legal proceeding that may signs icantl atfeci
<br />i.ender'c rights in the Propery (such as a proceeding in bankruptcy, probate, lot nrndemnanon or ti, enforce laws or
<br />regulations), then Lender may do" pay for whatever is necessary to protect the %line of the i'roperry and I ender', nghis
<br />in the Property. Lender's actions may include paying any sums secured M a lien uhtL h ha- priorty r,,er !his Securit%
<br />Instruincut• appeanng in court, paytni; i.awnableattorneys' fees and entering on itic i'ii lore, ro riakr ier.iir, Nlthc� ugh
<br />lender may, take actu+n tinder this paragraph ?. Lendcr lox not ha, c u .doi so
<br />Any amounts disbursed by Lendcr under this paragraph' shall bcomic additwnal Jcbt ni horr,-A cr se•, urcd h. alts
<br />itiurttY Instrument Unit_vs f.3orcowerand Lenileragrec toothet torns of pa•.me;it- these .+ noufu.,ha•) lea: ^tier t from
<br />the date of dishurvrnent w the Viii¢ rate and shall he payable. with :rile-c -a illw 11 :w :I,:. t• „I 1 _,idcr
<br />resluccttrig payment
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