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<br /> `O::ECEiER WITH all the improvemeâ–ºus n0W or hereafter erected on the property, and all easements, appurtenances.
<br /> and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security
<br /> Instturneat. All of the foregoing is referred to in this Security Instrument as the "Property."
<br /> BORROWER COVENANTS that Borrower is lawfully :seised of the estate hereby conveyed and has the right to'grant
<br /> and convey the Property and that the Property is unt.ncumbered, except for encumbrances of record. Borrower warrants and
<br /> will def'end' generally the title to the Property against, all claims and demands, subject to any encumbrances of record.
<br /> THIS SECURITY INSTRUMENT combine, uniform covenants for national use and non-uniform covenants with
<br /> limited variations by jurisdiction to constitute a uniform security instrument covering real property.
<br /> UNIFORM COVENANTS. Borrowmr and Lender covenant and agree as follows;
<br /> 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the
<br /> 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 to
<br /> Lender on the day monthly payments are due tmder the Note, until the Note is paid in full, a sum ("Funds") for: (a) yearly
<br /> taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold
<br /> payments or ground rents on the Property, if oily; (c) yearly hazard or property insurance premiums; (d) yearly flood
<br /> insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (f) any sums payable by Borrower to
<br /> Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These
<br /> items are called "Escrow Items." Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum
<br /> amount a lender for a federally related mortgage loan may require fo, Borrower's escrow account under the federal Real
<br /> Estate Settlement Procedures Act of 1974 as amended from time to time, 12'U.S.C. § 2601 et seq. ("RESPA"), unless another
<br /> law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amount not to
<br /> exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of current data and reasonable
<br /> estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law.
<br /> The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity
<br /> (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay
<br /> the Escrow Items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow
<br /> account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits
<br /> Lender to make such a charge. However, Lender may require Borrower to pay a one-time charge for an independent real
<br /> estate tax reporting service used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an
<br /> agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or
<br /> earnings on the Funds. Borrower and Lender may ague in writing, however, that interest shall be paid on the Funds. Lender
<br /> shall give to Borrower, without charge, an annual a.counting of the Funds, showing credits and debits to the Funds and the
<br /> purpose for which each debit to the Funds was mrde. T he Funds are pledged as additional security for all sums secured by
<br /> this Security Instrument.
<br /> If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to
<br /> Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by.
<br /> Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing; and, in
<br /> such case Borrower shall pay to Lender the amour,' necessary to make up the deficiency. Borrower shall make up the
<br /> deficiency in no more than twelve monthly payments, at Lender's sole discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument. Lender shall promptly refund to Borrower any
<br /> Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or
<br /> sa!m of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums
<br /> 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 any prepayment charges due under the Note; second, to amounts payable under
<br /> paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due under the Note.
<br /> 4. Vilarpes; Liens. Borrower shall pay ail taxes, rssessrnews, charges, fines and impositions attributable to the
<br /> Property which may attain priority over this Security instrument, a.nd leasehold payments or ground rents, if any. Borrower
<br /> shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner. Borrower shall pay them on
<br /> time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid undkrr
<br /> this paragraph. If Borrower makes these payments directly, ,Borrower shall promptly furnish to Lender receipts evidencing
<br /> the payments.
<br /> Borrower shall promptly discharge any lien which has priority ever this Security instrument unless Borrower: (a) agrees
<br /> in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the
<br /> lien by, or defends against enforcement of the lien in, legal proceedings which in the, Lender's opinion operate to prevent the
<br /> enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien
<br /> to this Security instrument. If Lender e,.ternines that any part of the Property is subject to a lien which may attain priority
<br /> over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take
<br /> one or more of the actions set forth above within 10 days of the giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Property insured against loss by fire, hazards included within the terns "extended coverage" and any other hazards, including
<br /> floods or flooding, for which Lcnder requires insurance. This insurance shall be maintained in the amounts and for the
<br /> Fbrm 31128 91" (page 2 of 6 pages)
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