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R5-- 00579
<br />UNIFORM CovGNAN :rs. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and interest; Prepayment and Late Charges. Borrower shall pnunpily pay when title
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges title under the Note.
<br />2. Funds for Taxes and insurance. Subject to applicable law or to it 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. it sum ("Funds ") equal to
<br />one - twelfth 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 tine Funds due on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds shall he 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 it charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable lase
<br />requires interest to he 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 credit, 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 Fonds held by Lender, together with the future moriffily 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 cticess shall bc,
<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 ray to [_under any
<br />amount necessary to make up the deficiency tit one or more payments as required by Lender.
<br />Upon payment in cull of all sums secured by this Security Instrument, Lender shall prompily refund u, 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 asacredit against thesums 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 , he
<br />Note: third, to amounts payable under paragraph 2; fourth, to interest duc: 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 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: (al
<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 lien in, legal proceedings which in the Lcndcr'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 hen 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 gite Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set firth above wnhin 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improt v!,icnis now existing or hereafter crecied on the Property
<br />insured against loss by fire, hazards included within the term "extended coserage" and arty other hazards li,r which 1 "ender
<br />requires insurance. This insurance shall he maintained Lit the amounts and for the periods than Lender requares i'lie
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to i ender's approsal which shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall Include it standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals If Lender requires. Borrower shall promptly ):nc to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss. Borrower shall gisc prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss il' 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. ll'the
<br />restoration or repair is not economically feasible or Lender's security would he lessened, the insurance proceeds shall he
<br />applied it) the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. if
<br />Borrower abandons the Property, or does not answer within 30 days a notice front Lender that the insurance carrier has
<br />offered to stifle a claim, then lender may collect the insurance proceeds. Lender may use the proceeds to rep,nr or re'siore
<br />the Property or to pay sutras secured by this Security Instruincnt, whether or not then due. line 30 -day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree its writing, any apphcalIon of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to Lit paragraphs 1 and 2 or change the annount of the payments If
<br />under paragraph 19 the Property is acquired by Lender. Bonower's right to any Insurance policies and proceeds resuhIng
<br />from damage to the Properly prior to the acquisition shalt pass to Lender to the extent o f t he sunis secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />b. Preservation and Jisintenance of Properly; Leaseholds. Borrower shall not destroy, damage or suhstantlally
<br />change the Property, allow the Property to deteriorate or conintnl waste. if thn Sc, tit ity Ilstrtlr tic II1 is on a I case) It, Id.
<br />Borrower shall comply with the provisions of the lease. and if Bonowcr ,requires fee titlL to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing
<br />7. Protection of bender's Rights in the Properly; 'Mortgage insurance. B• Borrower t:nl% to perform the
<br />covcnanb aced agreements contanicd ui the Security Instruincnt, or Iliac as a It-gal procccJtng than may stgnrfk alil I) .ill -ecl
<br />Lender's rights in the Property (such as a proceeding tit bankr'upicy• probate, for CondCnlllitlonl OF In enfineL lanes or
<br />regula(ions), then Lender may do and pay for whatever is necessary to protect the t aluc of l he lropert y and I ender'. nghls
<br />Iii the Property. Lender's actions may include paying aury sums secured I,y a hen which has priority nscr nhts Secunn
<br />Instrument, appearing Lin court, paying reasonable attorneys' tees and cnleling on the Property to make re),airs Although
<br />Lender may take aclion order this paragraph 7, Lander does not h.att c to do so
<br />L Any announts dishurwil by L ender Linden this paragraph " shall hrcrnnc ellln,nal &hi of Bon seem Lei I,y I lies
<br />"CUnty Instrument finless Borrower and I ender aFtvc In olher ILritl♦ „f payment. fhcse .inn,nnt..ti.,ll hem nurnsi from ti
<br />the (late of dishursentenl at the Note tail and shall he patahle, Hnti nrtenrst 'I"m noll ". It,an I rndri to Iioito,eet tp'
<br />requesfiny, paynacut ih
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