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UNIFORM COVENANTS. 6orrower and Lender covenanl and agree as foilows:
1. P~ym~nt ot PrlndpM ~nd IntK~s~ Pr~paym~nt ~nd l.~t~ Ch~rQ~s. 9arower shalt promptry pay when due the
p~incipal ot and interest on the debt evidenced by the Note and any prepayment and late chaifles due under the Note.
2 Funds ior TaxN Md 111fYfMCl. Subject ;o app;;cable law cx to a written wa~ver by Lender, Borrower shall pay to
Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to one-twelfth of: ( a)
~ yeary taxes and assessments which may attain prioriiy over this Security Insirumenl; (b) yearly leasehold payments a ground
~ rents on the Property, it any; (c) yeary hazard inswance premiuiiis: and yearly mortgago insurance prerniums, if any. These
items are cailed "c ~crow items." Lender may esiimate lhe Funds due on the basis of current data and reasonable estimates of
future esc~cw items.
The Fs~nds shall be held in an inst~tution the de~osits or accounts of whiCh are insured or guaran!eed by a federal or state
age~cy (including Lender it Lender is such an instilution). Lender shall appy ihe Funds lo pay the esaow items. Lender may not
charge (or holding and applying the Funds, analyzing the acoount or verifying the escrow Aems, unless Lender pays Borrower
interest on the Funds and applicable law permits Lender to make such a charge. Barower and Lende.~ may agree in writin~ 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
requ~red to pay Borrower any interest or earnings on the Furxls. Lender shall give to Borrower, without charge. an annual
accounting of the Funds showing credits and debits tothe Funds and the purposelor which each debit tothe Funds was made. The
Funds are pledged as additi~nal securiry tor the sums secured by this Security Instru~r~ent.
• tf the amount of the Funds held by Lender, together with the tut~sre monthly paymenis of Funds payable prsor to the due dates
of the escrow items, shalt exceed the amount required to pay the escrow items when due, the excess shall be. at Borrower's option,
eilher prompty repaid to Borrower or crsdited to BorroNer on monthry paymenls of Funds. tf the amount of the Funds t~eld by Lender
is not sufficient to pay ihe escrow items when due, Borrower sha11 pay to Lender any amounl necessary to make up the deficiency in
one or more payments as required by Lender.
Upon payment in full of atl sums secured by ihis Security Instrument, lendEr shatl promptly re(und to Borrower any Funds
held by ~ender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall appy, n~ later than immediatety prior
to the sale of the Property or its acquisition by Lender, any Funds hetd by Lender at the time of application as a c~edii a~ainst the
sums secured by this Security Instrument.
3. Appllcatlon of Paymfnta. Unless applicable law provides otherwise. all payments received by Lender under
paragraphs t and 2 shalt be apptied: first, to late charges dus under the Note; seconcf, to prepayment charges due under the Note;
third, to amounts payable under paragraph 2; fourth, to interest due: and last, to principal due.
~ 4. Char~~a; Ll~ns. Borrower shall pay all taxes, assessments, charges, fines and imposit;ons anributaWe to the
Property which may attain priority over this Security I nstrument, and leasehold payments or ground rents,'rf any. 8orrower shall pay
these obligations in the manner prwided in parag~aph 2, or if no~ paid in that manner, Barower shall pay them on tim2 directy to the
person owed p~yment. Borrower shall promptly furnish to Lender all notices of amour~s to be paid under this paragraph If Borrower
i makes these payments directly. Borrcwer shall prompty furnish to Lender receipts evidencing the payments.
k Borrower shall promptly discharge any lien which has priority over this Securiry Instrumenl unless Borrower: (a) agrees in
I writing lo the payment oi ihe obligation secured by lhe lien in a man ne~ acceptable to Lender: (b) contests in good f aith t he lien. by or
~ defends against eniorcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the eniorcement of
the lien or forfeiture ot any part oi the Property; or (c) secures (ror~ the holder uf the lien an agreen~ent satisfactory to Lender
subordinating the lien 1o this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may
attain priority over this Security Inslrument. Lender may give Borrower a notice identitying the lien. Borrower shall satisy the lien or
take one or more ot the actions set forth above within 10 days of the giving of notice.
5. Ha:ard Insunncs. Borrower shall keep the improvements now existing or he~eaft~ erected on the Property insured
against loss by fire, hazards included within the term "extended coverage' and any other hazar~ for which Lender requires
insurance. This insurance shall be maintained in the amounts and for ihe periods that lender requires. The insurance carrier
providing th~ insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreas~ :ably withheld.
~ All insurance policies and renewals shall be acceptable to Lender and shail indude a standard moRgage clause. Lender
~ shall have ihe right to hold the policies and renewals. If Lender requires, Barower shall promptly give to Lender all re~ceipts ol paid
premiums and renewal notices. ln the event of loss. Barower shall give prompt notice to the insurance carrier and Lender. lender
; may make proof oi loss if not made promptly by 6orrower.
Untess Lender and 8orro~nrer otherwise agree in writing, insurance proceeds shall be apptied to restoration or repair of the
; Property damaged, if the rest4ration or repair is economicaly feasible and Lender's security is not lessened. If the restoration or
~ repair is not economicaly feas~ble or Lender's security would be lessened. the insura~ ~ce proceeds shall be applied to the sums
~ secured by this Security Insirument, whether or not then due, with any excess paid to Borrower. lf Borrower abandons the Property.
or does not answer within 30 days a notice from Lender lhai the insurance carrier has offered to settle a claim, then Lender may
collect the insurance proceeds. Lender may use the ~oceeds to repair or restore the Property or to pay sums secured by this
Security Instrument, whelher or not then due. The 30-day period will begin when ihe notice is given.
Unless Lender and Borrower olherwise agree in writing, arry ~aplication of proceeds to principal shall not extend or
postpone the due date ot the monthy payments referred to in paragra~hs 1 and 2 or change the amount of the payments. If u~sder
- paragraph 19 the Property is acquired by Lender. 6orrower's right to any insurance pdicies and proceeds resufti~girom damageto
the Property pr~or to ihe acquisition shall pass to Lender to the extent oi the sums secured by this Security Instrument immediately
prior to the acquisition.
6. Prasrvation snd Milnien3nc~ ot Prop~rty; L~as~hold~. Borrower shall not destroy, damage or substantialy
change the Property, allow the Properiy to deteriorate or commit waste. If th+s Security I nstrument is on a Isasehold. Borrower shall
comply with the provisions of the lease, and ii Borrower acquires fee titl2 to the Property, the leasehold and feetitleshali not merge
unless Lender agrees to ihe merger in writing.
7. Prot~etlon ot L~nd~s rl~hts In the P~op~rty; Mort~~~ Insunne~. If Borrower tails to pertorm the covenants ~
and agreements contained in this Security Instrument, or there is a legal pro:,eeding that may significantly afiect LenQei's rights in ~
the Property (sucn as a asoceedinq in bankruptcy, probate, tor candemnation or to entorce laws or ~~gulations), then.Lender may ~
do and pay for whatever is necessary to proted ihe vatue of the ?roperty and Lender's righis in the Property. Lender's~fGDr~s may
include paying arry sums sECUred by a lie!t which has prior'~ty over this Security Instrument, appearing i~ Court, payin~ reasonable ~
altorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender does ~
not have to do so. f
Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security ~
Instrunient. Untess Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of ~
disbursement at the Note rate and sha~l be payable, with iMerest, upon notice from Lender to Borrower requesting payment.
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