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<br />84 - '002805
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<br />UNtFORM COVENANTS Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges, Borrower shall promptly pay when due
<br />the pnnc.pal of and interest on the debt ev,denced 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 wntten 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 altain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Propeny, if any; (c) yearly hazard msurance 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 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 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 Securitv 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 eAcess 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 eserow 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 10 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 Propeny is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to the sale of the Property or its aequisition by Lender, any Funds held by Lender at the time of
<br />applicatlOn as a creda agamst the sums seeured by this Secunty Instrument.
<br />3, Application of Payments, Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note; second, to prepaymenl 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 tbe
<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 ifnot paid in that manner. Borrowersbail
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all noliees 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 whieh has priority Over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obhgation secured by the hen in a manner acceptable to Lender; (b) eontests in good
<br />faith the hen by. or defends against enforeement of the hen in. legal proceedings whieh in the Lender's opinion operate to
<br />prevent the enforcement of the hen or forfeiture of any part of the Propeny; or (c) secures from the holder ofthelierfan
<br />agreement satisfactory to Lender subordinaling the hen to this Security Instrument. If Lender determineslhatany<partof
<br />the Propeny is subject to a hen which may attain priority over this Security Instrument, Lender may give Borrower'a
<br />notice identif}~ng Ihe lien, Borrower shall satisfy the hen or take one or mOre of the actions set forth above within 10 days
<br />of the giving of noliee.
<br />S, Hazard Insurance. Borrower shall keep the improvements now existing Or bereafter erected on the Property
<br />insured against loss by fire. hazards included within the term "extended coverage" and any other hazards forwbieb Lender
<br />requires insurance, This insuranee shall be maintained in the amounts and for the periods that Lender requires, The
<br />insurance carrier providing the insuranee shall be chosen by Borrower subject to Lender's approval whicb sball not, be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be aeeeptable to Lender and shall include a standard ,mongage:cbl!,UiC,
<br />Lender shall have the right to hold the pohcies and renewals, If Lender requires, Borrower.shallpromptlyg;,vetoJ;.endcr,
<br />all receipts of paid premiums and renewal notices, In the event ofloss, Borrower shall give promptnolicetothe,iosul'liiu:e
<br />carrier and Lender. Lender may make proof ofloss if not made promptly by Borrower,
<br />Unless Lender and Borrower otherwise agree in wriling. insurance proeeeds shall be applied to restoration Or .~
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is notl~ne!kIftbe
<br />restoration Or repair is not economically feasible or Lender's security would be lessened,. tbe insurancep~,shallbe
<br />apphed to the sums seeured by this Security Instrument, whether or nol then due, with a,nyexeess paidto.Bom>wer,.,If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance earrier.hll$
<br />offered to settle a claim, then Lender may collect the insuranee proceeds, Lender may use the proceeds 10 repair Or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due, The 3O-day period wiIlbegin
<br />when the noliee is given.
<br />Unless Lender and Borrower o~herwise agree in writing, any application of proceeds to prineipal shall not extend Qr
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments, If
<br />under paragraph 19the Propeny 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 sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6, Preservation and Mainteoanee of Property; Leasebolds. Borrower shall oot 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 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; Mortgage Insurance, If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in 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 rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property 10 make repair~, Although
<br />Lender may take action under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower ,ecured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms ofpaymem. the,:;.e amounb shaH bear mterest from
<br />the date of disbursement at the f\;ote rate' and shall he payable, with Intefe!-!, upun notice from Lender III Borrower
<br />requeshng payment.
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