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85== 005216
<br />UNIFORM COVFNAN"IS Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Interest, Prepayment and Late Charges. Borrower .hall promptly pay when due
<br />the principal ofand 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 wrow, t,l cr 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•twelflh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (h) 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 />basisofeurrenl data and reasonable estimates of future escrow items.
<br />The Funds shall be field in an institution Ihedeposits 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 dehil 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 to one or more payments as required by Lender.
<br />Upon payment in fult'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 Properly 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 he applied: first, to amounts payable under paragraph 21 second. to interest
<br />due; and last, to principal due.
<br />4. Charges; Liens. Borrower %hall pay all taxes, assessments, charges, lines 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 tit the manner provided tin 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 hen 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 licit 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 hen which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. forrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of nonce.
<br />S. Hazard Insurance. Borrower shall keep the improvements now extuing or hereafter erected on the Property
<br />insured against loss by fire, haauds included within the term "extender awcnlgc" and any other hazards for which Lender
<br />requires Illturance. This insurance shall he malwallled In the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower suhlect to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All Insurance policies and renewals shall be acceptable u, Lender and .hall Include 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. II the event of loss. Borrower shall give prompt nonce to the insurance
<br />carrier and Lender tender 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 resturatuun or repair 1s economically feasible and Lender's security is not lessened. If the
<br />restoranrm or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not Uqn due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days it notice front Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the Insurance pr cceds. Lender nav use the proceeds ul repair or restore
<br />the Propeny or to pay sums secured by this Security Instrument, whether or not then due. The 30 -day period will begin
<br />when the notice Is given.
<br />Unless Lender and Borrower 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 ul paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph ly the Property Is ac toted by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage it) the Properly prior w lie acquisition shall pass to Lender to the extent of the %urns secured by this Security
<br />Instrument immediately prior to file acqunsmu,n.
<br />6. Preservalion and Maintenance of Property; Leaseholds. Borrower %hall not destroy, damage or substantially
<br />change the Properly, allow the Property to dcterloralc or connro waste If Ili% Securty Instrument is on a leasehold,
<br />Borrower shall comply with Ile proymous O(' Ilrc leave, and If Borrower acquires fee title to rile Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger In writing.
<br />7. Protection of Lender's RhKhts in the Properly; Mortgage Insurance. If Borrower fads to perform the
<br />covenant%and agrecment%contained nl this Security Instrument, or there 1 %a legal proceeding that rnny significantly affect
<br />Lender's right% In the Property (%licit as a proceeding in bankruptcy, probate. for condemnation or to enforce laws or
<br />regulatiorm, them Lender may do and pay for whatever is necessary to protect the value (if the Property and 1_endrr's rights
<br />In the Properly Lender's acllons may Include paying any wens scoured by a lien which has pnonty over fhl% Security
<br />ln%trumenl, appealing tit court, paying reasonable attorory%' fees and entering on the Propclty w make repair% Although
<br />Leader rnny lake nrttoo under this paragraph 1. 1 ender doc% not have to do sit
<br />Any amounts dlshur%ed by I.011der under tin% paragraph 'I %hall I,/vnllle .Idrhh,nlal tlrhl A Bonowrr sCUOrd hr tins
<br />Security ln%ttlltorrll Unless Borrower and l errtlr'r agicr to other Irrin%I,I p.111rlrtll, %Ilall heat interest 11 Ultl
<br />the Barr of ohsh/nsrnrenl at the Now rate and %hall tw lalvable. with mrclrsl, '11,.,11 o„lirr hail 1 Cnafet 1,+ II,nit,wet
<br />rrquO%Ung paynlrnt
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