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UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 86-106219
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the
<br />principal of and interest on the debt evidenced by the Note and any p repay menr and tare charges due under the Nitre.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or 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, (b) yearly leasehold
<br />payments or ground 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 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 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 items, unless I-ender pays
<br />Borrower interest on 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 to Borrower, without
<br />charge, an annual accounting of the Funds showing credits and debits to t he 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 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 held 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 bit Lender under
<br />paragraphs I and 2 shall be appliedi first, to late charges due under the Note, second, m prepayment charges due under the
<br />Note; third, to amounts payable under paragraph ' 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 ] nstrument, and leasehold payments or ground rents, if ,tiny Bor. over
<br />shall pay these obligations in the manner provided in paragraph ?, or it not paid in that manner, Burrower shall pay them on
<br />time directly to the person owed payment. Burrower shall promptly furnish to lender all notices of amounts ro be paid under
<br />this paragraph. If Borrower makes these payments directly, Burrower shall promptly furnish ro Lender receipts evidencing
<br />the payments.
<br />Borrower shall promptly discharge any lien which has prior." o%er this Srcunt lnscrwtienr unless Burrower ,a!
<br />agrees in writing to the payment of the obligation secured by the lien I n a manner acceptable ui lender: i b) contests in good
<br />faith the hen by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate u,
<br />prevent the enforcement of the lien or forfeiture of any parr of the Property; or !c) secures from the holder of the Iren an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument, If Lender determines that any part oft he
<br />Property is subject to a lien which may attain priority over this Security instrument, Lender may give Borrower a nonce
<br />identifying the lien. Burrower shall satisfy the lien or take one or more of the actions set forth above within 111 days of the
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<br />giving of notice.
<br />5. Hazard Insurance_ Borrower shall keep the improvements now existing or hereafter erected tin the Property
<br />insured against loss by fire, hazards included within the term extended coverage" and any other hazards for which Ixnder
<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 Burrower subject ro Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceprable uo Lender and shall include a standard mortgage clause lender
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<br />shall have the right to hold the policies and renewals. If lender requires, Born wer shall promptly gn e to Lender all receipts
<br />of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice co the insurance carrier and
<br />Lender. Lender may make proof of loss if not made promptly by Burrower
<br />Unless Lender and Burrower otherwise agree in writing, insurance proceeds shall be 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 Security Instrument, whether or not then due, with any excess paid to Burrower If
<br />Borrower abandons the Property, or does not answer within ;0 days a nonce from Lender that rile insurance carrier has
<br />offered to settle a claim, (hen Lender may collect the insurance proceeds Lender tnay use the prote•eds to repair or restore the
<br />Property or to pay sums secured by this Security Instrument, whether or not then due The i0 -day period will begin when the
<br />notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any applicaron of proceeds to pnnupal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and ' or change the amount of the pay merits it
<br />under paragraph 19 the Property is acquired by Lender, lirruwer s right to any insurance policies and proceeds resulting
<br />from damage to the Property pnor u, the acquisition shall pass to Lender to the• extent o of the sums secured be this Senora"
<br />Instrument immediately prior to the acquisition
<br />6. Preservation and Maintenance of Property; Leaseholds_ Borrower shall not desuoy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste It this somunry Instrument is nn a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Burrower atquire•s ive title- to rile Pro r_•rry, rile 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. It Burruwet falls to Ivi -torn the Covenants
<br />and agreements contained in this Security instrument, or there is a legal priKeeding that may signifitantlr affect Lender s
<br />rights in the Property (such as a procerdmg to bankruptc), probate, fur condemnation o u n enforce laiI i a regulet ions!, then
<br />Lender may do and pay for whatever is necessary ai protect the value• of the Property end Lender s right, in the Pti,perty
<br />lenders actions may include paying any sums secured by a hen which has pnontt over this Seuir ity instrument, appearing in
<br />court, paying reasonable attorneys' fees and entering tin the Property to make iepaii s Although Lender may take action
<br />under this paragraph 7. Ixnder does not have to do so
<br />Any amounts disbursed by lender under this paragraph' shat) hroirnc iddm,orial debt if Borrowct .enured by rills
<br />Security Instrument Unless Borrower and Lender agree to orhrr ra ms of p. +recent, these .unuunt. sh. fl `n ar ,ncurest f f,m)
<br />thedateof disbursement at the Note rate and shall be payable, with nverust, up—n nw,tr to an I c n,fc, t, Ito r,,.ac r :c•oluest mg
<br />Payment
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