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005380
<br />UNIFriaM COVENANTS Borrower and Lender covenant and agree as fill lows:
<br />I. Pavment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when dnc
<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 writtc-. ,,t er by Lender. Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is p ;tit ro full, a sum ( "Funds") equal to
<br />ore- twelfth of: (a) yearly taxes and assessments which may attain priority over Ibis 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 />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 arc 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 ntx 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. Wunder 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 dine of
<br />application as credit against the sums secured by this Security Instrument
<br />3. AppBeatioa of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs i and 2 shall beapplied: first, to amounts payable under paragraph 21 second. to interest
<br />due; and last, to principal due.
<br />!. Charges; Liens. Borrower shall pay all taxes. assessments, charges, noes 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 prionty 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 hen 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 hen to this Secunty 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 />S. Hazard Insurance. Borrower shall keep the improvements now extstmg or hereafter erected on the Properly
<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 it-. -c.t% and for the period% that Lender requires The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall 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 premtnms 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 lss if not made promptly by Borrower
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is econonucally 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 be
<br />applied to the sums secured by this Security Instrument, whether or not thCn due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days 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 In pay sums secured by this Security Instrument, whether or not then due. The 30 -day period will begin
<br />when the nowe e% given.
<br />Unless Lerner 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 to paragraphs 1 and 2 or change the amount of the payments. If
<br />under paragraph 19 the Propctiy is acyinred by Lender, Borrower's right to any insurance policies and proceed% resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by ties Security
<br />Instrument immediately prior tit the acquisttton
<br />6. Preservation and Maintenance of Property; leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to delcriorate or commit waste. if this Security instrument its on a leasehold.
<br />Borrower shall comply with the provisions of the lease. and of Borrower acquires Ice title ai the Properly, the leasehold arid
<br />fee title shall not nnerge unless Lender agrees to the merger in writing.
<br />7. Protettiow of Leader's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security instrument, or there is it legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding to bankruptcy, probate. for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's right%
<br />in the Property. Lender's action% may include paying any sums secured by a lien which has prionty river this Security
<br />instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Letter may take action under this paragraph 7, Lender does not have to do so.
<br />L Any amounts dtshursed by tender under this paragraph 7 shall become additional debt of B cr
<br />orrower %ured by this
<br />Secunty Instrument, Unless Borrower and Lender agree a, other terms of payment, these amount% shall bear interest from
<br />the dale of disbursement at the Note rate and shall be payable, with mtcre%t, upim nonce from Lender to Borrower
<br />requesting payment.
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