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UNIFORM COVENANTS- Borrower and Lender covenant and agree as follows: Ss— 103278
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the
<br />principal 042nd interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds forTaxesand Insurance. Subject applicable lawor to a written waiver by Lender, 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 />one twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; tb) yearly leasehold
<br />payments or groundrents onthe 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 due 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 ag:ncy (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 items, unless Lender pays
<br />Burrower intereston the Funds and applicable law permits lender to make such a charge. Borrower and Lender may agree in
<br />writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give it) Borrower, without
<br />charge, an annual accounting of the Funds showing creuits and debits to the Funds -ind 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 to pay the escrow items when due, the excess shall be, at
<br />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 any
<br />Funds field by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than
<br />immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application
<br />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, [o amounts payable under paragraph 2; fourth. to interest due; and last, to principal duo-.
<br />4. Charges; Liens. Borrower shall pay all razes, 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. Borrower
<br />;hall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on
<br />ime directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under
<br />his paragraph. If Borrower makes these payments directly, Burrower shall promptly furnish to lender receipts evidencing
<br />he payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />tgrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
<br />airlt the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />trevent the enforcement of the lien or forfeiture of any part of the Property; or (U 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 />'roperty is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice
<br />dentifying the lien. Borrower shall satisfy the lien or rake one or more of rile actions set forth above within 10 days of the
<br />riving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />nsured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />equires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />nsurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />nreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard nwrtgageclause. Lender
<br />hall have the right to hold the policies and renewals. if Lender requires, Borrower shall promptly give to Lender all receipts
<br />,f paid premiums and renewal notices. [n the event of loss, Borrower shall give prompt notice to the insurance carrier and
<br />.ender. fender 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 to restoration or repair
<br />f the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />estoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />pplied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to borrower. If
<br />lorrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />ffered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the
<br />lroperty or to pay sums secured by this Security Instrument, wherher or not then due. The 30 -day period will begin when the
<br />otice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds u, principal shall not extend or
<br />Kostpone the due date of the monthly payments referred to in paragraphs I and 2 or change the .unount of rile payments. if
<br />nder paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance Ixdicies and proceeds resulting
<br />rom damage to the Property prior to the acquisition shall pass to Lender ro rile extent of the sums secured by this Security
<br />nstrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />hange the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />lorrower shall comply with the provisions of the lease, and if Borrower acquires fee title ro the Property, rile leasehold and
<br />ee tide shall not merge unless Lender agrees to rile merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the covenants
<br />nd agreements contained in this Security Instrument, or there is a legal proceeding that utay significantly affect Lender's
<br />ights in the Property ( such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regulations), then
<br />.ender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the I'ruperry.
<br />.endei s actions may include paying any suns secured by a lien which has priority over this Security instrument, appearing in
<br />ourt, paying reasonable attorneys' fees and entering on the Property of make repairs. Although Lender may take action
<br />rider this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall heotme addinonal debt of Borrower secured hs tills
<br />iecurity Instrument. Unless Borrower and lender agree to other resits of payment, these amount shall 11Ca1 interest from
<br />he dateof disbursement at the Note rate and shall be payable, with interest, upm ounce from Lender to Borruuer requesting
<br />tayment.
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