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UNIFORM COVENn!~TS. Borrower and Lender covenant and agree as follows: w~
l. Payment of Principal and Interest; Preps~yment ttnd I.ate Cherges. Borrower shall promptly pay w•hen due
the principal of and interest on the debt evidenced by the Note and any prepayment and la[e charges due under the Note.
2. Funds for Tsxes xnd lasurance. Subject to applicable law or to a written waiver by Lender. Borrow•er shall pa}~
to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equa) to
one-twelRh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
leasehold payments or ground reizts on the Property, if any; (c) yeariy hazard insurance premiums; and (d) yearly
mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
basis of current data and reasonable estimates of future escrow items.
The Funds shall be heid in an institution the deposits or accounts of which are insur.~ or gua~ anteed by a federal or
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to ~ly the es~:row items.
Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
Lender pays fiorrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
requires interest to be paid, Lender shall nat be required to pay Borrow~er any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Fur.ds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
this Security lnstrument.
If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
the due dates of the escrow items, shall exceed the amount required to pay the escrow~ items when due, the excess shall be,
at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
amount of the Funds held by Lender is not sufi'icient to pa~• the escrow items when due, Borrower shall pay to Lender any
amount necessary to make up the deficiency in one or more payments as required by Lender.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
any Funds held by Lender. lf under paragraph 19 the Property is sold or acquired b}• Lender, Lender shall apply, n~ later ~
than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of '
application as a credit against the sums secured by this Security Instrument.
3. Application of Payments. Unless applicable law provides otherw~ise, all payments received by Lender under
paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
'.'~'ote; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
4. Charges; Liens. Borrow~er shall pay all taxes, assessments, charges, fines and impositions attributable to the
Yroperty which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
IIorrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrow•er makc~ thc~e payments directly, Borrower shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptly discharge any lien w~hich has priority over this Security Instrument unless Borrow~er. (a)
agrees in writing ro the payment of the obligation secured by the lien in a manner acceptable to Lender, (b) contests in good
iaith the lien by, or defends against eniorcement of the lien in, legal proceedings wh:ch in the Lender's opinion operate to
prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
the Property is subject to a lien which may altain priority over this Security Instrument, Lender may give Borrower a
notice identif}~ing the lien. Borrower shall satisfy the lien or take one or more of the actions set forth abuve w~ithin ]0 days
c~f the giving of notice.
S. Hazard Insurance. Borrower shall keep the improvements nua~ existing or hereafter erected on the Property
insured against loss by fire, hazards included w•ithin the term "extended co~~erage" and an}• other hazards for w~hich Lender
requires insurance. This insurance shall be maintai~ed in the amounts and for the periods that Lender requires. The
insurance carrier providing the insurance shall be chosen b} Borro~~er subject to Lender's appro~~al N~hich shall not be ~
unreasonably withheld.
All insurance policies and renew~als ~hall be acceptable to Lender and ~hall include a standard mortgage clduse.
; Lender shall ha~~e the right to hold the policies and renew~als. If Lender requireti, Borroaer shalt promptly gi~~e to Lender
~ all receipts of paid premiums and renewal notices. In the e~•ent of loss, Borrow~er shall give prompt notice to the insurance
rarrier and Lender. Lender may make proof of loss if not made promptly b}- Borrower.
E Unless Lender and Borrower otherw~ise agree in w~riting, insuranre prckeedti shall be applied to restoration or repair
E of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
restoration or repair is not economically feasible or Lender's securit}~ w~ould be lessened, the insurance proceeds shatl be
applied to the sums secured by this Security Instrument, w~hether or not then due, w~ith any excess paid to Borrower. If
Borrower abandons the Propertp, or does not answer within 30 da}~s a notice from Lender that the insurance carrier has
ofiered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or resrore ~
~ the Property or to pay sums secured by~ this Securit~~ Intitrument, w~hether or not then due. The 30-day~ period w•ill begin
whenthe notice is given. ?
Un!ess Lender and Borro«~er otherwise agree in writing, any application of proc~eeds to principal shall not extend or
postpone the due date of the monthly pa}•ments referred to in paragraphs 1 and 2 or change the amount of the payments. If
under paragraph 19 the Property is acquired by Lender, Borrow~er's right to any insurance policies and proceeds resulting
~ from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Securit}~
Instrument immediately prior to the acquisition. ,
6. Preservation and :~Isintenance of Property; Leaseholds. Borrow•er shall not destro}~, damage or substantiall}'
change the Propeny, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, '
~ Borrower shall comply with the provisions of the lease, and if Borrow~er acquires fee title to the Property, the leasehold and
f fee iitle shail not merge unless Lender agrees to the merger in w~riting.
y 7. Protection of Lender's Rights in the Property; ~tortgage Insuranee. If Borrower fails to perform the a
covenants and agreements contained in this Security Instrument, or there is a legal proc-eeding [hat may signihcantly affect '
~ Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
s regulations), then Lender may do and pay for whatever is necessary to p: otect the value of tne Property and Lender's rights
~ in the Property. Lender's actions may include paying any sums secured by a lien whirh has priority over this Securit}•
Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
~ Lender may take action under this paragraph 7, Lender dces not have to do so.
Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Rorror~~er secured by this
Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shali bear interest from
the date of disbursement at the Note rate and shall be pa}•able, with interest, upon notice from Lender to Borrower
requesting payment.
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