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<br />84 -002807
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<br />UNIFORM 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 principal of and interest on the debt evidenced by the Nete and any prepayment and late charges due under the Note.
<br />2, Funds for Taxes and Insurance, Subject to applicable law or to a wnlten waIver by Lender. Borrower shall pay
<br />to Lender on the day monthly paymenls 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 ever 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. ifany. 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 Ihe 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 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 />any Funds held by Lender, If under paragraph 19 the Property is sold or acquired by Lender, Lender shan apply. no later
<br />than immediately prior to the sale of the Property or jts 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 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 opinion 9matel?
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of:theJien:an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument, If Lender determines that anypatlof
<br />the Property is subject to a lien which may attain priorily 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 setforth abovewithil110'dliys
<br />of the giving of notice.
<br />S. HIlZIInI 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 olher 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 whieh shalUiotcbe
<br />unreasonably withheld,
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard'mortgap,c~\ISC'
<br />Lender shall have the right to hold the policies and renewals, If Lender requires, Borrower shall promptlygiveto;~
<br />all receipts of paid premiums and renewal notices, In the event of loss, Borrower shall give promptnoticeJo the i\1sllQll(ie
<br />carrier and Lender, Lender may make proof ofloss if not made promptly by Borrower, ,
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoratiQnj)J'.:~r
<br />of the Property damaged. if the restoration or repair is economically feasible and Lender's security isnol lesseneclt~fcJ.l~e,
<br />restoration or repair is not economically feasible or Lender's security would be lessened"theinsurancepr~:@l'b't
<br />applied to Ihe sums secured by this Security Instrument, whether or not then due, withl!'lyexcess paid'\o,llon;<i,.,er,Jf
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance .:anierhas
<br />olTered to settle a claim, then Lender may collect the insurance proceeds, Lender may use the proceeds to repair orre5tj)J'e
<br />the Property or to pay sums secured by this Security Instrument, whet/ler or not then due, The '3D-day period will.begi!l
<br />when the notice is given,
<br />Unless Lender and Borrower otherwise agree in writing. any application of proceeds to principalsha1l:notextend-Of
<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 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 extenl of the sums secured by this Security
<br />Instrument immediately prior to the acquisition,
<br />6, Preservation and Maintenance of Property; Leaseholds. Borrower shall 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 ree title to the Property, the leaseholdll!ld
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortpge Insurance. If Borrower fails to perform the
<br />covenants and agreements contained i.n this Security Instiument, 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 whalever is necessary to prolect the value of the Property and Lender's rights
<br />In the Property. Lender's acllons may includc 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 to make repairs, Although
<br />Lender may take action under this paragraph i, Lender does not have to do so,
<br />Any amounts disbursed by Lender under this paragraph i shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment. these amounts shaH bear interest from
<br />the date of disbursement at the Note rate and shall be payable. with interest. upon nOll.:e from Lender to Borrower
<br />requestmg payment.
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