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UNIFORM COVENANTS Borrower and Lender covenant and agree as follows: 85-005990
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay vvfien 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 written waiver by lender. Borrower shrill 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, Wally. 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 />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 file
<br />purpose for which each debit to the Funds was made. The Funds are pledged a% 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 Borrowers option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. 1f 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 receryed by Leader 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 />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 nodes•% 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 prceedings which in .,c Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or fc) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrumem. If Lender determines that any pan 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 %hail satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice. 1
<br />5. Ha Insurance. Borrower shall keep the impmvernents now existing or hereafter erected on the Property Zi
<br />insured against loss by fire, hazards included within the term "evtendea coverage° and any other hazards for which I -ender
<br />requires insurance. This insurance shall he maintained in the amounts and for the pen,xis that Lender rcyuuts. The
<br />insurance carrier providing the insurance shall he chosen by Borrower suhtect to Lender's approval which shall nor be
<br />unreasonably withheld.
<br />All insurance policies and renewals -,hail 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 requires. Borrower shall prompil% 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
<br />carrier and lender. Lender may make proofof loss if not made promptly by Borrower.
<br />Unless Lcndcr 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 economically feasible and Lender's security Is not lessened. if the
<br />restoration or repair is not economically feasible or Lender's security would he 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 it) Borrower. If
<br />Borrower abandoms the Property, or does not answer within 30 days a notice from Lcndcr that tire insurance carrier has
<br />c4cred to settle a claim, then Lender may collect the insurance proceeds. Lender ma} use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument. whether or not it due Lhc 30 -day prrnal will begin
<br />when the notice is given.
<br />Unless lender and Borrower otherwise agree to 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 pavmcnts. It
<br />under paragraph 19 the Property Is acquired by Lender, Borrower's right to any nlsurancc pellicles and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lcndcr �o the cnlent of the sums secured by this Secut itv
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not desu„ y. damage or subsrult ;ally
<br />change the Property, allow the Property to deteriorate or commit waste. If tills SCLUMI rnstrumc•ru Is on a leasehold.
<br />Borrower shall comply with the provisions of the lease• arid ti Borrower acquires fee title if) file Property, file leasehold and
<br />fee title shall not merge unit-%% Lender agrees in the merger tit writing.
<br />7. Protection of tender's Rights in the Property; Mortgage Insurance, If Horrowct falls it, perf,anl rile
<br />covcnantsand agreements contained In this Security Instrument, or (here• v%a legal proceeding that may ognificand ailed
<br />Lender's right% in the Property (such as a proceeding Ill hankruptcy. probate. fi r cundemuauolr or to enforce laws 01
<br />regulations), then Lender may do and pay for whatever 1s necessary to protect the v aluc,dthc Pro verty and I ender'+ rights
<br />to the Property L.ender'% action% may include paying any +urns secured by i hen which has pilorny ,ter rills Secunn
<br />Instrumem, appearing in court, paying reasonable attorneys' fees and cnu•rnig on rile I'roprrly to make tepart, A Irhough
<br />Lender may take action under tilts paragraph 7. Lender does not have to do so
<br />Any amounisdf-,bur %cd by I ender uncle[ tills paragraph •'shall hec arts ad,htn sal dill t liar ,suer v, wed by this
<br />ye'urity hr%irument 1.?nles% lkirrower and I critter af!rev To label terms odpavnn•r,t, nccsc a171 "ants shall hear interest 'IT „,If
<br />the date of an%burocment dl the Noll• rain and shall he pavahfe. wnh mfelcst, tits n r, „i,c Ir,.n, 1 cmlrr i :• H rr eel
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