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<br />004690
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Paymat of Principal and Interest; Prepayment and lane Charges. Borrower shall promptly pay when due
<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. Funk for Taxes sad 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 />stale 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 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. 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 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 /><. Charges; Liens. Borrower shall pay all taxes, assessments, charges, tines and impositions attributable to the
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<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 (a),
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable u) Lender: (h) 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 />from holder the lien
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<br />prevent the enforcement of the lien or forfeiture of any part of the Property: or (C) secures the of an
<br />agreement satisfactory to Lender subordinating the lien to this Se: urity 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 it
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set for!h above within 10 days
<br />of the gi ving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against Ices by fire. hazards included within the term "extended coverage" and any other )guards for which Lender
<br />requires insurance. This insurance shall tie maintained in the amounts and for the periods that [.Crider requires. The
<br />insurance carrier providing tine insurance shall he shown by Borrower subject to L.ender's approval "filch shall nut be
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<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 right to hold the policies and renewals. If Lender requres, Borrower shall promptly give to Lender
<br />a
<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 pit K,f of loss if not made prompt ly 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 Iender's security 1', riot lessened. If tine
<br />restoration or repair Is not economically feasible or Lender's security would be lessened, the insurance pr cceds shall he
<br />applied to the sums secured by this Security Instrument, whether or nut then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days it notice from Lender that the insurance carrier has
<br />offered to Settle a claim. then Lender Islay Collect the insurance proceeds. [.Crider may !15c the proceeds to repair or restore
<br />the Property or tit pay sunk secured by (Ills Security Instrument, whether of riot then dui'. I fie 30 -day period "Ill begin
<br />when the notice is given.
<br />Unless Lender and Borrowcr otherwise: agree In writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to In paragraphs I and 2 or change the amount of the payments. if
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right tea any insurance policies and proceeds resuhing
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of IhC sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property: leaseholds. Borrower shall not destroy. damage or suhscuttialty
<br />change the Property, allow the Property to deteriorate or commit waste. It' this Securuy lnsnunncnt is on a Icaschold.
<br />Borrower shall comply with the provision» of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee [file shall not merge unless Lcodcr agrees to the merger in writing.
<br />7. Protection of Lender'v klxhts in the Properly: mortgage Insurance. If Borrower skills to ikrlixm the
<br />coven ttsand agreemcntscontained in this Security Instrument. or there is a legal proceeding that may significantly :!flirt
<br />Under'% rights in the Property (such as a preceedtfng In hankruplcq, probate, for condemnation car to enforce Elms or
<br />regulowlins), their I..endet [nay do and pay for whatever is necessary to protect the %aduc of the Propertg and Lender's rights
<br />in the Property. Lenelet's acfious may include paying any sums secured by a hen a Inch has prumty o-'er this Security
<br />Instrument, appearing to court, paying reasonable attorneys' feel, And enIVInIg on the I'rnperty to make repairs Although
<br />Lender may take action under this paragraph 7, Lender char not have to do sax.
<br />Any amounts disbursed by I.andcr tinder this paragraph 7 shall heo,niv addornual LICH ,,f Borrower secured hg liu>
<br />Security instrument. I)nlewr lorrower and Lender „tree u, other refills ot pay nicnt, tlit-w a notuns shall hear tw can dons
<br />the datc of disbursement .al the Note rate and shall he payable, wnh mteie.i. upon notwc Iloilo l ender !o Borrooset
<br />fequ. *lmx payment
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