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UNiFORMCOVENANTS. Borrower and Lender covenant and agree asfollows: Sq.- 000378
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<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower snPromptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges dtie under the Note.
<br />2. Funds for Taxes and Insurance. 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- tweffth 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; (c) 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 of current data and 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 it federal or
<br />state agency (including Lender if Lender is such an institution). lender shall apply the Funds to pay the escrow items.
<br />1 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 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 cLarge, 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 as 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 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
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Under shall 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 tire 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 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. (at
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to 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 to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property: or (c) secures from the holder of the hen 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 Lice Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth ahox'e within 10 day%
<br />of the giving of notice.
<br />5. Haaard 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 Fhc
<br />insurance carrier providing the insurance shall he chosen by Borrower subject to Lender's approval which shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall he acceptable to Lender and shall Include a %iamdarol 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 prermurns and renewal notices. in the event of loss, Borrower shall give prompt notice to the insurance
<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 In 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 />restoralvin or repair is not economically feasible or Lender's security would lie lessened, the insurance proceeds shall he
<br />applied to the wens secured by this Security instrument. whether or not then due. with any excess paid to Borrower. It'
<br />Borrower abandons the Property. or does not answer within 10 days a notice front lender that the Insurance carrier has
<br />offered to settle a claim, then lender may collect the insurance proceeds. Lender iliay use the procerd% to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. I'he ?0 -day period will l+egtn
<br />when the notice is given.
<br />Unless tender and Burrower otherwise agree in writing, any application of proceeds to Iincipal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs t and 2 or change the amount of the pay ntctus II'
<br />under paragraph 19 the Property is acquired by lender, Borrow'er's right to any uisuramv policies and pr recd% resuhme,
<br />from damage to the Property prior to the acquisition Shall pass to lender to the extent of the sums secured hi tilts Secur 114
<br />Instrument immediately prior to the acquisition.
<br />b. Preservation and Maintenance of Property; Leaseholds. Borrower shall not dcsrtoe . Halo, c or suhst,orl �;1ih
<br />change the Property. allow the property to detcnorale or commit waste If this 1tv,IIllt IIINIIulnel�; 11 on a Ic'I'd +id.
<br />Borrower shall comply with the prmisiow of the lease, and rl' Borrower actiuncs lee title to the Propene, the leasehold,u1t
<br />fec title %hail not merge unless I ender agrees to the merger ni writing.
<br />7. Protection of Lender's Rights in the Property; Morlgn)te Insurance. 11 llorr41s +c1 °,Ills let 1'er'horn1 the
<br />covemantsand agreement %Contained in this Security Imirunicni, or there 1%.1 leva1 that 1t,a1 1Iit11111, 11111y .111,-, I
<br />lender'% right% in the lrn,periy (such as a piocecdtnp in hankruptcy. laohale. I.,t ,;11delm1a111111 ,,r I, cnlol,c Los• , I
<br />regulations), then Lender may doand pay for whatever 1% necessary to ptotect the 4a1ue Hilo propern 11411 emlcl'. t101f%
<br />in the Properly Lender's actions may Include puynig any sun". secured bt .I hen uhl'11 1111% 7,rotlt+ 0%4 I fin. "CL 11117%
<br />In %trumeni. appearing in court, paying reasonable mtoml,,N ' Ices and rnteuoi° on the 1'rope•1It t', make rrt,.111, y1111ott }:h
<br />Lender may fake action under this paragraph 7. Lender iloc% non hale io do so
<br />Any amountsdtshursed by I ender nndcr this patagraph ',.hail ix °.tree u14h11 n 11, + :t,I 0? Ilot °.,4ic1 .r, 111AI I,s tin,
<br />1+ecurity Instrument l'nic%s Horrowrr and Lcndcr agree toolhcr tenw. i,i 1m%II cIIL I31C 4 v1rttln ^t,hall h: n TItICICNI 11„111
<br />the dale of eh%bursement it the 'tints lase .Ind shall he patahhV, een11 111Ir11sl fr. .1 1 "t1drr, f.• flan lru cl
<br />requesting paytnetll
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