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UNIFURM COYF~ntvTS. Borrowzr and Lender covenant and agree as follc~ws:
l. Payment of Principal artd lnterest; Prepayment and l.ate Charges. I3orrower shail promptl~ pay ah~n dur
the prineipal of and interest on the debt evidenced by the Note and any prepdyalent an:i late charges due undrr ihr Note.
2. Funds for Taxes and Insurance. Subject to applicable law or to a writtrn waiver by Lender, 6orro~~ er shall pa~•
to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a~um ("Funds") eyu~il to
one-tweltth of: (a) yearly taxes and assessments which may attain priority over this Securit}• Instrume~~t; (b) yearl~•
leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
mortgage insurance premiums, if any. These items are calied "escrow items." Lender may estimate the Funds due on the ?
basis of current data and reasonabie estimates of future escrow items.
The Funds shall be held in 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 pay the escrow items.
Lender may not charge for hulding and applying the Funds, analyzing the account or verifying the escrow~ items, unies~
Lender pays Borrower interest on the Funds and applicabie taw 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 t
requires interest to be paid, Lender shall not be required to pay Borrower any inte~est or earnings on the Funds. Lender ~
shall give to Borrower, without charge, an annual accounting of the Fur.ds showing credits and drbits to tfie Funds and the
purpose for which each debit to the Funds was made. T'he Funds are piedged as additional scxurity for the sums secured b}• ~
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this Security Instrument. T
If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to f
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 uption, 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 pap the escrow items when due, Borrow~er shait pay to Lender any~
amount necessary to make up the deficiency in one or more payments as required b}• Lender. ~
Upon payment in full of all sums secured by this Security Insirument, Lender shall promptly refu~d to Borrower "
an Funds held b Lender. If under ara ra h!9 the Pro rt ~ is sold or ac uired by Lender, Lender shall a 1~, no later f!,
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than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
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application as a credit against the sums secured by this Se~;urity Instrument.
3, Applieation of Payments. Unless applicable law provides otherwise, alt payments rec-eivec! by Lender under
paragraphs 1 and 2 shall be applied: first, to iate charges due under the Note; second, to prepaS~ment charges due under the
Note; third, to amounts payable under paragraph 2; fourth, to :nterest due; and last, to principal due.
4. Charges; Liens. Borrower shall pay all taxes, assessments, ct~arges, fines and im~sitions attributable to the
Propeny which may attain priority over this Securiiy Instrument, and leasehold payments or ground rents, if any.
Borrower shall pay these obtigations ~n the manner provided in paragraph 2, or if not paid in tnat manner, Borroi~~er sh~ll
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 Horrower makes these ~ayments directl~~, Borrower shall promptl~~ furnish to Lender ~
receipts evidencing the payments. ~
Borrower shall promptly discharge any lien which has priority over this Security Instrument un(ess Borrower: (a) x
agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, (b) contests in gcxxl +
faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion aperate to ~
prevent the enforcement of the tien or forfeiture of any part of the Nroperty; or (c) sec:ures frc~m the holder of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determities that any part of
the Property is subject to a lien which may attain prioritv over this Securily lnstrument. Lender may give Borrower a
notice identifying the lien. Borrow~er shall satisf}~ the lien or tai:e one or more of the actions set forth atx~~~e ~~ithin 10 day~s
of the giving of notice.
5, Hazard Insurance. Borrower sl~all keep the improvements nou~ existing or hereafter erected on the Propert~~
insured against loss by fire, hazards includeci within the term "extended coverage" and any~ other hazards for wfiich Lender
requires insurance. This insurance shall be maintained in the amounts and for the pc:ric~ds that Lender requires. The ~
insurance carrier pro~•iding the insurance shall t~ chosen by Bo~rower subject to Lender's approvai w~hich shaH nut be ?
unreasonably withheld. ~
All insurance poiicies and renewals shall be acceptable to Lender and shall include a standard mortgage clautie.
Lender shall have the right to hold the poliric~ and renewals. If Lender requires, BorroH~er shall promptl}' gi~'e ta Lender
al! receipts of paid premiums and rene~~al notices. In the e~•ent of loss. Borrower shall gi~~e prompt notire to the insurance
carrier and Lender. Lender may make prcxif of loss if n~~t made promptly by Borrower.
Unless Lender and Borrow~er otherw~ise agree in w•riting, insurance procecds shall be applicd to restoration or repair
of the Property damaged, if the restoration or repair is ecanomicall}~ feasible and Lender's security is not lessened. If the
restoration or repair is not economicaUti~ feasible or Lender's security would be tessened, the insurance proceeds shall be
applied to the sums secured by this Security Instrument, whether or not then due, w~ith an~~ excess paid to Borrower. If
Borrow~er abandons the Yroperty, or dces not ansa~er within 30 da}•s a notice fram Lender that the insurance carrier has
offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the prcxeeds to repair or restore
the Propetty or to pay sums secured bc this Serurit}~ Instrument, whether or not then due. The 30-day period will bcgin
when the notice is gi~~en.
Unless Lender and Borrow~er otherwise agree in writing, an~~ application of prc~ceeds to principal shall not extend or
postpone the due date of the monthly pa~~ments referred to in paragr:~phs 1 and ? c~r change the amaunt of the pa~~ment~. [f'
under paragraph 19 the Property is acquired bp Lender, Borrow~er's right to any insurance poliric~s and pra:eeds resulting
from damage to the Property prior to the acquisition shall pass to Lender ta the extent of the sums secured b}~ this Securit}~
Instrument immediateh~ rrior ro the acquisition.
6. Preservatioe and 1laintenance of Property; Leaseholds. Borrower shall not destrup, damage or substantiall}'
change the Pro~ri}•, allow the Pro~r:y to deteriorate or cammit w~aste. If this Securit}~ Instrument is on a lea~ehold.
Borrower shall comply~ w~ith the pro~~isi~ns of the lease, and if 8orrower acquires fee title to the Property. the leasehotd and
fee title shall not merge unit~s Lender agreet to the merger in writing.
7. Protection of I_ender's Ri~hts in the Property; :~iortgage Iosurance. If Borro~cer fails to perform the
covenants and agreements contained in this S~curity instrument, or there is a legal prckceding that ma} signitiranth• atTect
Lender's rights in the Yraperty (such as a prc~ceeding in bankruptcy, prabate, for condemnation or to enforce laas or
regulations), then Lender may do and pa}~ for w~hate~er is necessary to protect the ~~alue of the Propert~ and Lender's rightti
in the Propert~~. Lender's actians ma} include pa~~ing any sums secured b}• a lien w•hich has pri~ritt• e~tier this Securit}~
Instrument, ap}~rearing in cuurt, pa}~ing reasonable attorneys' fees a~id erttering on the Pro~rty~ to make re~+airs. Although
Lender may take action uncler this paragraph 7, Lender dces not have to ~o so.
Any amounts disbursed b~~ Lender under this paragraph 7 shall become additional debt of BorroN~er secured by~ this
Security Instrument. Unless Borrow•er and I_ender agree to other terms of papmenl, these amounts shall bear interest from
the date of disbursement at the Note rate and shall be pay~able, w•ith interest, upon notice from Lender ro Borrow~er
requesting pay~ment.
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