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UNIFORM CO~'ENANTS. BoffOwer and Lender covenam and agree as Pollows:
1. Payment of Principal and lnteresh Prepayment and Late Charges. Borro~~er shall promptl} pa}~ wh~n due
the prin~ipal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Nute. '
2. Fuads for Taxes and Insurance. Subject to Applicabte law or to a written waiver by Lender, Borrower sh~ll pa~• ;
to Lender on the day m~inthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
one-twelfth of: (a) yearly taxes and assessments which may atlain priority over this Security Instrument; (b) yeari~~
leasehold payments or ground rents on :he Property, if any; (c) yearly hazard insurance premiums; and (d) y~early
mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
basis of current data and reas~nable estimates of fuwre escrow items.
The Funds shall be heid i~ an institution the deposits or accounts of which are insured or guaranteed by a federal or
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pa~~ the escroH• items.
Lender may not charge for holding and applying the Funds. analyzing the account or verifying the escrow items, unless
Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
Lender may agree in wnting that interest shall be paid on the Funds. Unless an agreement is made or applicable law•
requires interest to be paid, Lender shall not be required to pay Borrow~er any interest or earnings on the Funds. Lender
shall give to Borrower, without chsrge, an annual accounting of the Fur.ds showing credits and debits to the Funds and the
purpose far which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured b~~
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 sufficient to pay the escrow items when due, Borrow~er shall pay to Lender anp
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 promptiy refund to Borrower
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no 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 pro~~ides otherwise, all payments received by Lender under
paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment ~harges due nnder the
Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
4. Charges; Liens. Borrower shalt pay all taxes, assessments, charges, fines and impositions attributable to the
Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
Barrower shall pay tfiese obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrow-er shail
. pay them on time directly to the person owed payment. Borrower shalt promptly furnish to Lender all notices of amounts
to be paid under this paragraph. lf Barrower makes these payments directly, Borrower shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptly discharge any lien which has priority aver this Security Instrument unless Borrower: (a)
agrees in writing to the ~ayment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
fai:h the lien by, or defends against enforcement of the lien in, legal proceedings which 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 attain prio!ity over this Security Instrument, Lender may give Borrower a
notice identifying the lien. Borrower shali satisfy the lien or take one or more of the actions set forth above w•ithin 10 days
of the giving of
notice.
5. Hazard Insurance. Borrower shall keep the improvements noa~ existing or hereafter erected an the Propert}•
insured against loss by fire, hazards included within the tecm "extended coverage" and any other hazards for w•hich Lender
requires insurance. This insurance shap be maintained in the amounts and for the periods that Lender requires. The
; insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval w•hich shail not be
j unreasonably withheld.
E All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
Lender shali have the right to hold the policies and renewals. If Lender requires, Borrower shall promptl}~ give to Lender
~ all receipts of paid premiurns and renewal notices. In the event of loss. Borrower shall give prompt notice to the insurance
~ carrier and Lender. I.ender may make proof of loss if not made promptly by Borrow~er.
~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
~ 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 feasibie or Lender's security would be lessened, the insurance proceeds shail be
applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
~ Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
~ the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-da}° period a~ill begin
~ when the notice is given.
~ Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
~ postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
~ under paragraph 19 the Property is acquired by Lender, Borrower'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 Maintenance of Property; Leaseholds. Borrower shall not destro}~, damage or substantially
~ change the Propeny, allow the Property to deteriorate or commit waste. If this Securit~• Instrument is on a lea~ehold,
~ Borrower shall compfy with the provisions of the lease, and it' Borrower acquires fee title to the Property, the leasehold and
~ fee title shall not merge unless Lender agrees to the merger in writing.
~ 7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
co~enants and a~reements contained in this Security Instrument, or there is a legal proceeding that may significantly~ affect
~ Lender's rights in the Property (such as a proceeding in bankruptcy, pr~bate, for condemnatian or to enforce law~s or
~ regulations), then Lender may do and pay for whatever is necessary to protect the value of the Propert}• and Lender's rights
~ in the Property. Lender's actions may include paying any sums secured by a lien which has priorit~~ over this Security
Instrument, appearing in court, pay~ing reasonable attorneys' fees and ente~ing on the Property t~ make repairs. Although
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~ Lender may take action under this paragraph 7, Lender does not have to do so.
~ Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured b}• this
Security Instrument. Unless Borrower and Lender agree to other terms of pa}~ment, th~se amounts shall bear interest from
the date of disbursement at the Note rate and shall be ~+ay~able, w~ith interest, upon notice fr~m Lender to Borrower
requesting payment.
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