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UNIFORM COVE \ACTS. Borrower Lcndcr rn n
<br />veant and agree as follows: d-5- 005999
<br />1. Payment of Principal and Interest: Prepayment and Late Charges, iorrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges clue under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />r to Lender on the day monthly payments are due under the Note, until the 'rote is paid in lull, a sum ("Funds") equal to
<br />I 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 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 insuied•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 agreenieni 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 f=unds showing credits and debits to the Funds. nd 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 />anv Funds held by Lender. if under paragraph 19 the Property is sold or acquired by Lender, Lender shalt 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 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 />ZCharges; 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 :hem on time directly to the person owed payment. Borrower shal; 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 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 impros.mcnts now existing or licreafter erected on the Property
<br />insured against loss by fire• ha7.ards included within the term "extended coverage" and amt other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonabiv 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 politics 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 j
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Burrower. !
<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 be lessened. the insurance proceeds shall be
<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, 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 to pay sums secured by this Security Instrument, whether or not then clue. 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 in paragraphs 1 and 2 or change the amount of the payments. if
<br />under paragraph 19 the Property is acquired by Lcndcr. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preaervalion and Maintenance of Property: leaseholds. Borro wet sha ll not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security instrument is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the 1C3sehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Riphts in the Property: Mortgage Insurance. if Borrower fails io perform the
<br />covenants and agreements contained in this Security instrument, or there is a legal proceeding that ni:q significantly affect
<br />Lender's rights in the property (such as a proceeding in bankruptcy. prohatc, f,,r condciimauon or r,, enforce laws or
<br />regulations). then Lender may do and pay for w hatever is necessary to protect cis y:ilue of the Properi% mitt Lender's rights
<br />L in the Property, Lender's actions may include paying any sums wcwc , b% a hen Much hm, priority me, this Cccunty
<br />Instrument, appearing in court. pitying reasonable attoricys' fees and c u; :net on the Pr,p crt.� To rna�e iepaiis Although
<br />Lender may take action under this paragraph', Lendcr does not has c to dr so.
<br />Any amounts disbursed h} Lcndcr under this paragraph " shall become additional debt c f !t,•rrouer sec tired h. this
<br />Sccurty ltrsirurricnt. L :i less Borrtn%er and I.andrr wrcetowhcr+crm•ol T,.r,rnier11, th,.. wwjm ,rr•. ,. ; t,,,• u•'cresi Iran
<br />the date of dtshursc•rnetit at the Noic rate ,11141 sliall !,c I•.n• r,'c. ^.it i mrrr<v. nt•, n ow !!," ww 1 , , ;cr io lirt,,er
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