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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. Aorrower shall promptly pay when due 86--w 402 01
<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 writtc.-, ccr by Lender, Borrower shall pay
<br />to Lender on the day monthly payment, are due under the Note, until the Note is pntct ir, 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 he paid, Lender shall not he 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 required by Lender.
<br />Upon payment in full cif 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, 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 ? shall be applied: first, to amounts payable tinder Paragraph 2; second, to Interest
<br />due; and last, to principal duo.
<br />4. Charges; Liens.. Borrower shall pay all taxes, assessments, charges, lines and impositions attributable t o t he
<br />Property which may attan 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 ?, or if not paid in that manner, Borrower shall
<br />pay them on time directly to the person ( +well 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: (a)
<br />agrees in writing to the payment of the obligation secured by the lien Ina 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 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 give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien 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 Joss by' tire, 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 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 standard mortgage clause.
<br />Lender shall have the , ight to hold the policies and renewals. If Lender requires, Borrower shall promptly' give to Lender
<br />all receipts of paid premiums 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 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 he lessened, the insurance proceeds shall he
<br />applied to the Sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, ar does not answer within 30 days a notice from Lender that the insurance farrier has
<br />offered to settle a claim, then Lender may collect the, insurance proceeds. lender trial, use the proceeds to repair or restore
<br />the Property or to pay sutras secured by this Security Instrument, whether or not thin due. The ;0 -day perro(J will begin
<br />when the notice is given. R
<br />Unless bender and Borrower otherwise agree in writing, any application of proceeds to principal shall [lot extend or
<br />p«stpone the due date of the monthly payments referred to in paragraphs i and ? or change the amount of the payments. !f
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />froin damage to the Property prior to the acquisition shall pass to Lender to the extent of the sit, %secured by this Security
<br />instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; rt Leaseholds. Borrower shall not (icsn'oy, damage ur suhstantialls
<br />change the Property, allow the Property to deteriorates or sprain" waste. If this SC;llt'lt� Irlslr'litnerlt Is or a Ic:aett„1(1.
<br />Borrower shall t:o merge with the provisions of the lease, and if Borrower acquires 1'ec' title to the i'ropertr. the leasc°ho1 1
<br />fee title shall not rttergc unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. (f Burrowfr lads h, pertiernt tic
<br />covenants and agreements contained in this Security Instrument, or there is a legal profe`fdtng that may slgniti.a „toy affect
<br />Lender's rights in the Property (such as a proceeding in hankruptcv, probale. litr fondent11.11loll or Io enl'or< (° laws or
<br />regulations). then i.c °nc)cr may do and pav filr whillever a necessary to protect the v;rluc ufthe 1'r(lperty an(! E r lttt'r's rrt tilt
<br />in the Property. iender's actions may include paring any runts secured by a lien evhlfh ha. prlerrty over this Serurlt�
<br />Instrument, appearing In court, paying reasonable attorneys' tees and entering on the Property Io make repairs 'although
<br />Lender may take action ender this paragraph 7. Lender does not have to do so.
<br />Any amounts disbursed by lender' under this p;u'agraph ?shall heconne additional debt t,f ltorroe%er set: uretl by this
<br />Security ilistrUrllR lt, Unless 11()rl'(Ievl r and I.elldet. agree 1(l tittic'r (e'rtlls t,t plylllt °ill. the <t' :I lllt�ltnt� sll;lll lh'ar IIIIt'tt' r lI't,Ir)
<br />the date Ill dabnr4elllellt at (11x hV(rtf.' rail` and dhalI be: pay;lt,le, %till, Ill lt're�l, 11114 ,11 Ill al ll t' from 1 t'Ildet to tt, al la?N t'1
<br />requesting payment.
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