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UNIFORM COVENANTS Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
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<br />the 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
<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; (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 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 />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 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 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 r ?quired 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 IQ 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 at 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 pnority 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 he 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 hen which has prionty over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender. (h► contests in good
<br />faith the lien by, or defends against enforcement of the hen in. legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the hen or forfeiture of any part 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 gi e Borrower a
<br />notice identifying the hen Borrower shall satisfy the hen or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />5. 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 he 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 appro%ai which shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall he acceptable to Lender and shall unciude 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 arid 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 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 he
<br />applied to the sums secured by this Secunty Instrument, whether or not then due, with any, excess paid to Borrower. if
<br />Borrower abandons the Property, or does not answer within 30 day% a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds Lender may 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 -clay peri <>tl well beg ii,
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing. any application of proceeds to principal shall riot extend or
<br />postpone the due date of the monthly payments referred to in paragraphs i and 2 or change the anuillnt of the payments it,
<br />under paragraph 19 the Property is acquired by (..ender. Borrower's right to any insurance policies and proceeds resultulc
<br />from damage to the Property prior to the acquisition shall pass to Lender I` 111C the extent of the sums secured by this `+ecunt�
<br />Instrument immediately prior to the acquisition
<br />6. Preservation and Maintenance of Property; Leaseholds, Borrower shall rat destroy, daniage or suh,t;intu,ills
<br />chacage the Property, allow the Property to deteriorate of commit waste. if this Se.urite lnstnimrnt IS url ;a lease °!raid.
<br />iiursuwcr shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title %hall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's (tights in the Property; Mortgage Insurance. It I�orruwc r falls tai pc rftirnl the
<br />co,ve.narits and agreernrnts cant<ained Ir1 this Security Instrument. tit there v, a legal prrPce�c�din ' Choi mad slgnitilalntl� :lflect
<br />Letleler's flghl% it, the Irfall�'rty ( %UC:II a'o E1 pttb�c °eding
<br />It' t)arlk?upic•\. prohale, rail .olidellillalloll [Pr To e►lttlt'c•c' laws t►
<br />regulatiarp,), then !.ender ►nay il" and paid is nect-'sart li tuts'" t the \ka11ac
<br />in the Property lender's aie�tlatis luxe ailchide paynlg and sums secured h% <a fie °n eerll hrih,I'tpY1�4�ttean�! Ire�l�leii����i�rlilt�
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