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00631
<br />UNIFORM COVENAN IS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Burrower shall promptly pay when due
<br />the principal of and 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 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 - 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, if any. 'fhcse items are called "escrow items." Lender may estimate the Funds due on the
<br />basis ofcurrent 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 is federal or
<br />slate 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 oft 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 stmt,. 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 dales 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. 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 received by Under under
<br />paragraphs I 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 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 opimon 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 gtse 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 improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazards tier which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires Tits
<br />insurance carrier providing the insurance shall he chosen by Borrower suhject to Lenders appro%al which shall not lie
<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 premiums and renewal notices. In the event of loss, Borrower shall gise prompt nonce io the insurance
<br />carrier and Lender. Lender may make proof of loss Knot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance prineeds shall he applied n, restoration or repair
<br />of the Property damaged. if the restoration or repair is economically feasible anti 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 14) the sums secured by this Security Instrument, whether or not then duc. with any excess paid ur Borrower. It'
<br />Borrower abandons the Property, or does not answer within 30 days it 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 Instrumenr, whether or not then clue. I'hc 30 -day period will begin
<br />when the miller is given.
<br />Unless Lender and Borrower otherwise agree u► writ ing, any application of proceeds to principal shall not extend or
<br />postpone the due dale of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the paynocnts. If
<br />under paragraph 19 the Property is acquired by Lender, 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 suns secured M this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds, Borrower shall not destroy, danoagc or suhslannally
<br />change the Property, allow the Property to deteriorate or commit waste. if this Secunty Instrument is on a Icaschold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title m the Property. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgagc Insurance. If Borrower girls to perform the
<br />covenants and agreements contained tit this Security Instrument, or there is a legal proceeding that may si fnilic:mtly affect
<br />Lender's rights in the Property (such its a proceeding in bankruptcy, probate. for condcnuta►tu +n or to ,.agar,.• laws or
<br />regulation-), then Lender may do and p iv lior whatever is necessary to protect the c aluc of ncc Property and Lender's rights
<br />in Ih� Properly. Lender's actions may include paying, any sutras secured by a hen which has i,norny o►cr this Sccunn
<br />Instrument, appearing in court, paying reasonable attorneys' fees and cnlertng on the I'rol,erty to make repairs Although
<br />Lender may take action under this paragraph 7, Lender cities not hale to do so
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<br />Any amounts dishursed by Lender under this paragraph 7 shall hceonne adduuaual drill of lorrower sc, urea hs this
<br />Security Instrument. Unless Horrower and Lender agree to other tcrnn of pay meat, shall bear interest horn
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<br />the dale of dishursemenl al the Note rate and shall he pupahle. north interest, upon noucc Iron, 1 ender i,, 11,nr0aer
<br />reyneslrng p;ryrucnt
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