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g6- 106239
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows
<br />I. 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 prepayment and late charges due under the Note
<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 Lender pays
<br />Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Iender may agree in
<br />writing that interest shall be paid on the Funds. Unless an agreement is made or applicable taw 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 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 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 to one ur 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 N 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 Ixnder, any Funds held by Ixnder at the rime 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 I and 2 shall be applied: first, to late charges due under the Note, second.:, prepayment charges due under tite
<br />Note; third, to amounts payable under paragraph ? fourth, r, Interest due. and List, too principal due
<br />a. Charges; Liens. Borrower shall pay all taxes. assessments, charges, tines and imp,tsinons attributable to the
<br />Property which may attain prior ry over this Security Instrument, and leasehold payments or ground rents, if any Burrower
<br />shall pay these obligations in the manner provided in paragraph 2, or it not paid to that manner, Borrower shall pay them on
<br />time directly to the person owed payment Borrower shall promptly furnish no Lender all n „cites of amounts to be paid under
<br />this paragraph. if Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing
<br />the payments.
<br />Borrower shall promptly discharge any hen which has Prior!” over this Security Instrument unless Borrower a
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<br />agrees in writing to the payment of the obligation secured by the lien in d manner acceptable no 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 ro
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (L) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument If Lender dete -mines that any part of the
<br />Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Burrower a notice
<br />identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 d.tys of tote
<br />giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on rile Property
<br />insured against loss by fire, hazards included within the term 'extended coverage" and any other hazards for which Leader
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<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 he Chosen by Borrower subject to Lenders appr %al which shall not be
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<br />unreasonably withheld
<br />All insurance policies and renewals shall be acceptable to lender and shall include a standard mortgage clause Lender
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<br />shall have the right u) hold the policies and renewals If Lender requires, Borrow: r shall prompt h' give ao Lender all receipts
<br />of paid premiums and renewal notices. in the event of loss. Borrower shall give prompt nonce to the insurance carrier and
<br />Lender. Lender may make proof of loss if not made promptly by Borrower
<br />Unless Ixnder and Borrower otherwise agrer in writing, insurance proceeds shall be applied tit restoration or repair
<br />of the Property damaged, if the resu,ration or repair is economically feasible and Lender s security is nut lessened. It the
<br />restoration or repair is not economically feasible ur 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 am excess paid to Burrower If
<br />Borrower abandons the Property, or dues not answer within i0 days a notice from Lender that the insurance carrier lids
<br />offered to settle a claim, then lender may col left tfie insurance proceeds Lender may use the proceeds r, 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 Burrower otherwise agree to writing, any application of proceeds r> prncipa; shallow extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2,,r change the amount of the payrents- It
<br />under paragraph 19 the Property is acquired by Lender. Borrower's right ❑i anv insurance policies and proceeds resulting
<br />from damage to the Property prior — the al,quisition shall pass to lender u, the extent of the sums secured by tilts Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall tint destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste it this Security instrumept 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
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<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 Borrower fails to perform the uoyenants
<br />and agreements contained in this Security Instrument, or there is a legal prceeding that may significantly affect Lender s
<br />rights in the Property (such as a proceeding in bankruptcy, probate. for condemnation or to enforce law sor regulations i, then
<br />Lender may do and pay for whatever is necessary r) protect the value of the Property and Lender's rights tit the Property
<br />Lender's actions may include paying any sums secured by a hen which has prior« y over this Security Instrument, appearing in
<br />court, paying reasonable attorneys' fees and entering on the Property to make repairs Although Lender in," tike Action
<br />under this paragraph ?, Lender does not have to do so
<br />Any amounts disbursed by Lender under this paragraph - shall Itecome addition debt of Burrower secured by this
<br />Securuv Instrument. Unless Borrower and Lender agree u, other terms of payment, these• anounn shall Ixar interest from,
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<br />the dateof disbursement at the Note rate and shall Ew payable, wish uttrrrsi. upon nonce tr in Ixnder no B, r,owet rt-quxst-9
<br />payment.
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