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<br />~\i 004556
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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 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 Lcnder all thc day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") eqoal to
<br />one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrume1l1; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance - premiu-ms;' and- (~) yearly
<br />mortgage insurance premiums, if any, These items are called "escrow items." Lender may estimate the Funds duean.the
<br />basis of current data and reasonable estimates offuture escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed bya federaiar
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay theescro",items,
<br />Lender may not charge for holding and applying the Funds, analyzing the account ar verifying the escrow items; unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge, Boriower and
<br />Lender may agree in writing t~at interest shaH be paid on the Funds. Unless an agreement is made- or appUcabieJaw
<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 paym!,ms of,Funds, Ifth!'.
<br />amount oflhe Funds held by Lender is nol sufficient to pay Ihe escrow items when due, Borrower shall pay to Lender any
<br />amount neces.sary to make up the deficiency in one or more paymenfs as required by Lender. -
<br />Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Bouo",!'r
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no laler
<br />than immediately prior to the sal!' of the Property or its acquisition by Lender, any Funds held by Lender at the lime,()f
<br />application as a credit against the sums secured by this Security Instrument.
<br />3, Application of Payments. Unl",s applicable law provides ot"erwise. aj! payments received by Lender under
<br />paragraphs I .and 2. shaH be applied: first. to late charges due under rhc N(~,,, : second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; tourth, to in! ';, d",., and last, to principal due,
<br />4. Charges; I.iens. Borrower shall pay all !axe~. asseS5.ment:,. charges, fines and impositions attributable to the
<br />Property which may attain priority over Ihis Security Instrument, and leasehold payments or ground r!'nts, if any.
<br />Barrower 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 10 Lender all notic", of amounts
<br />to be paid under this paragraph. If Borrower makes th",e payments dir!'ctly, 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 Lend~r; (b) contests in good
<br />faith the lien by, or defends against enforc!'ment of the lien in, legal proceedings which in the Lender's opinion operale to
<br />prevent the enforc!'ment of the lien or forfeiture of any part of the Property; ar (c) secures from the holder oflhe lien an
<br />agreement satisfactory to Lender subordinating the lien to Ihis Security Instrument, If Lender determin", that any part of
<br />the Property is subject to a hen 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 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 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 10 Lender's approval which shall not be
<br />unreasonably withheld.
<br />An insurance policies and renewals shall he acc-cptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the rightlo 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 give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss ifnot made promptly by Borrower.
<br />Unle&..;;, Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the ProperlY damaged, if the r"'toration 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, t he insurance proceeds shall be
<br />applied 10 the sums secured by this Sel'urity 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 />onert.'tl to senle it daim. then Lender may collect the Insurance proceeds. Lender may lIse the proceeds to repair or restore
<br />the Property t)r 10 pay sums secured by 1hi~ Security Instrument, \....hether or not then due. The 30~day period will begin
<br />when the notice is given.
<br />Unles.s Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not t'Xknd (1r
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the paymcllb, If
<br />under paragraph I q the Properly is acquired by Lender, Borrower's right to any insurance policies and proct."eds resulting
<br />from damage to the Property prior to the acquisition shan pass to lender 10 the extent orthe sums secured by this Securit~
<br />Instrument immediatdy prior to the acquisition.
<br />6. Prcsen'ation and J\taintenance of Propert}'; Leaseholds. Borruwer shall [wt dCSlrl)Y. damage llf ~ub~talllially
<br />change th~ Pn1JX'rty. allow the Property to deteriorate or commit waste. If thi~ SCi.:uriry Instrument i~ Utl a kascholJ.
<br />Borrower shaH comply with the provisions of the lease, and if B("Irrowe-1' acquires fee title to I he Propt.'rty. 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: :\lortgagc Insurance. If Borrower fails to pcrl\)rm the
<br />covenants and agreements cOIHained in this Serunty InstrumclH, nr there is a kgal rroceeding thalma) :-'lgnilh:alllly atlel'(
<br />Lender's rights in the Property (such as a prol'ceding in hankruptl.:y, probate. for l'olH,kmnatlO1l ('r hl t'nf(1rCt' laws l)r
<br />reguiation~). ihcll Lender may do and pay for \\'halC\'cr is I1cCt.~ssary to protel..'t lilt' \ aluc of the Property and l.endt'r\. nghr:..
<br />in the Property, Lender's actions may include paying any sums sl.:l..'urcd hy a hen \\ hidl ha~ pn~'nt) \\\{..'r rlus Sl'l..'unt)
<br />Instrument, appearing in court. paying reasonable attorneys' fct.'~ and entering {Ill lhe Propt..'r{~ 10 m.\~t' rt'palrs, AhllllUgh
<br />Lemler may take-action under thiS paragraph 7, Lender docs not h.ne h) do so
<br />Any alllounts disbursed by Lender under this paragraph? shall be~Qme addltll111al debt l)!" H(ll'\ ~m t'f \C(Ul't'd 11) I h1\
<br />St'l'unty Instrument. Unles.s Borrower and Lender agree to (lthl'r terms ()fpaYll1t'lll. Ihl':-'L' <lIll,)unh s!ull bt.'ar lllh:rcsl f!'Ulll
<br />the Jatc l)f dlsburst,~mcnt ;11 the N(l{C ratt~ and ~hall he rayablt'. \\llh 1111(';'t'....I, UP,)!! Ihl!ll'l' fl\l\l1 l t'lldcl 1\1 Hl11Ill\\t'1
<br />rC4ucMmg p,aymcnt,
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