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UNIFORM COVENANTS. Barrower and Lender covenant and agree as tollo~vs~
t. PAyment of Principal and Inter@st; Prepayment and Lete Charges. f3orrower shall promptly pay wfien due ihe
principal ol and intQrest on tha debt ovidenced by the NotQ and any prepayment and late charges due unde~ Ifie Nole.
2. Funds for 7ascee and Insurance. Subject to applicable law or to a written waiver by lender, Borrower shali pay to
lender on lhe day monthty payments are due under the Note, unlil the Note is paid in tull, a sum ("Funds") equal to one-tweltlh oi: ( a)
yearly taxes and assessments which may atlain priority over this Security lnstrument; (b) yearly leasehold payments or ground
rents on lhe Property, if any; (c) yearly hazard insurance pr~miums; and (d) yearly mortgage insurancs premiums, if any. These
items are called "escrow items." Lender may eslimate the Funds duQ on the basis of current data and reasonable estimates of
tuture escrov~ items.
7he Funds shatl be held in an institution the deposits or accounls of which are insured or guaranleed by a tederal or state
agency (inclUding Lender if Lender is such an institutionj. Lender shall apply the Funds to pay the escrow items. Lender may not
, chargo for holding and applying Ihe Funds, analyzing the accour,t or verifying ihe escrow items, unless Lender pays Borrower
interest on the Funds and applicable law permits Lender to make such a charye. 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 not be
~ required ;o pay Bor~ower any interest or ea~nings on the Funds. Lender shall give to Borrower, without charge, an annual
accounting of the Funds showing credits and debits tothe Funds and the purpose tor •,vhich each debit tothe Funds was made. The
Funds are pledged as additional security tor the sums secured by this Security Instrument.
If the amount of the Funds held by Lender, (ogelher with the future monthty paymenls oi Funds payable prior tothe due dates
of the escrow iterns, 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 monthty payments oi Funds. If the amount of the Funds hetd by Lender
is not sufficient to pay lhe escrow items when due, Borrower shall pay toLender any amount necessary to make upihe deticiency in
one or more payments as required by Lender. ~
Upon payme~t in full of all sums seCured by this Security Instrumenl. Lender shall promptly refund to Borrower any Funds
held by Lender. I( under paragraph 19 the Property is sold or acquired by Lender, Lender shall appy, no later th2n immediately prior
to the sale of the Property or its acquisition by lender, any Funds hetd by Lender at the time of application as a credit against the
sums secured by this Security Instrument. -
3. Appllcatlon oi Payments. Unless applicable la~v provides otherwise, all payments received by Lender under
paragraphs t and 2 shall be appiied: first, io laie charges due under ihe Note; second, to prepayment charges due under the Nole;
lhird, to amount5 payable under paragraph 2; fourth, to interest due; and last, to principal d~e.
, 4. Charges; Ll~n:. Borrower shalt ~ay all taxes, assessments, charges, fines and impositions attrit~utable to the
Properiy which may attain priority over this Security Instrument, and teasehold payments or ground rents, i( any. Borrower shall pay
these obligations in lhe 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 promptry furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower
makes these payments directly, Borrower shall promptly furnisn to Lender receipts evidencing the payments.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in
writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien, by o~
defends against enforcement oi the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of
the lien or for(eiture of any part of the Property: or (c) secures from the holder of the lien an agreernent satisfaclory to Lender
subordinating the lien to this Securily Instrument. lf Lender determines tha! any part of the Property is subject to a tien which may
~ attain priority over this Security Instrurnent. ~~nder may give Borrower a notice identifyingthetien. Borrower shall satisty the lien or
~ take one or more of the actions sei fa,th above within 10 days o( the giving oi notice.
5. Hazerd Insurence. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
against loss by tire, hazards inc~uded within the term "extended coverage" and any other hazards for which Lender requires
insurance. This insurance shall be maintained ir. the amounts and for the periods lhat Lender requires. The insurance carrier
providing the insurance shall be chosen by Borrower subjeci to Lender's apRroval which shall not be unreasonably withheld.
All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender
E shall have the right to hold the policies and renewals. If Lender requires, E3orrower shall promptly give to Lenc+er all receipts of paid
~ premiums and rene~val notices. In the event of loss, Borrower shall give prompt notice ta the insurance carrier andLender. Lender
E may make proof of loss if not made promptly by Borrower.
! Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoralion or repair of the
~ Property damaged, i( the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or
~ repair ~s not economically feasible or Lender's security woutd be lessened, the insurance proceeds shall be applied to the sums
secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Barrower abandons the Property.
or does not answer within 30 days a notice from Lender that the insurance carrier has offered to seitle a claim, then Lender may
coltect 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-day period will 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 !he monthly payments referred to in paragraphs 1 and 2 or change the amouni of the payments. If under
paragraph 19 the Property is acquired by Lender, Borrower's right toany insurance policies andproceeds resultingfrom damageto
the Property prior to lhe acquisition shail pass to Lender to lhe extent of lhe sums secured by this Security Instrument immediately
prior to the acquisition.
6. Preaervatfon and Malntenance of Properiy; Leaseho~ds. Borrower shalf not destroy, damage or substantially
change the Property, allow the Property to deteriorate or commit waste. Ii this Security Instrument is on a teasehold. Borrower shall
comply with the provisions of the lease, and ii Borrower acquires fee title to the Property, the leasehold and feetitte shall not merge
un!ess Lender agrees to the merger in writing. '
7. Protectlon of Lenslers rights In the Property; Mortgege Insurance. If Borrower (ails to pertorm the covenants
and agreements contained in this Security Instrument, or lhere is a legal proceeding that may signiticantly a(fect Lender's rights in
the Property (such as a praceeding in bankruptcy, probate, for condemnation or to enforce laws or regulations), then Lender may
do and pay tor whatever is necessary to protect the value of the Property and Lender's rights m the Property. ~ender's aetion$ may
include paying any sums secured by a lien which has priority over this Security Instrument, appearing in courl, paying reasonable -
attorneys' fees and entering on the Property lo make repairs. Allhough Lender may talce aclion under this paragraph 7, lender does
not have to do so.
Any amounts disbursed by Lender under th~s paragraph 7 shall become additional debt o( Borrower secured by this Security
Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of
disbursement at the Note rate and shall be payable. vrith interest, upon notice irom Lender to Borrower requesting payment. f:~
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