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UNIFORM CovEN~NTS. Horrower and Lender covenant and agree as follows:
1, Payment ot Pri~cipal and Intereat; Prepaymeat and I.~te Chnrges. Borrowcr shall promptly pay whcn due :
the principal ofand i~terest on the debt evidcnccd by the Notc and any prepaymGnt and late charges due under the Note. ~
2. Funds !or Taxea and Insursnre. Subject to applicable law or to a written waiver by l.ender, Borrower shall pay ~
to Lender on the day monthly payments arc due undcr the Note~ until thc Notc is paid in full, a sum ("Funds") equal to 3
one-twelRh of: (a) yearly taxes and assessments which may ~ttain priority ove~ this Security Instrument; (b) yea~ly
leasehold payments or ground rtnts on the Property~ if any; (cj yearly hazard insurance premiums; aRd (d) yeariy
mortgage insurance promiums~ if any. These items arc callod "escrow items." I,ender may estimate the Funds due on the
basis of current data and reasonable estimates oPl'uture eserow items.
The Funds shall be held in an institution thc 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 holding and applyi~g the Funds. anaiyzing the account or verifying the escrow items, unless
L.ender pays Borrower interest on the Funds and appliceble law permiis Lender to make such a charge. Borrower and
L,ender may agrec in writing that interest sha11 be paid on thc Funds. Unless an agreement is madc or applicable law
requires interest to be paid~ Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Bonower~ without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to th~ Funds was made. The Funds are pledged as additional security for the sums secured by
this Security Instrument.
If the amount oFthe Funds held by Lender~ together with the future monthly payments of Funds payable prior to ~
;~p^~~, ~tist? P•~~~ ,~+P Am~~,~~ ~~r„~~re~i tn nay the escrow items when due. the excess shall be,
at Borrower's option~ either promptly repaid to Honower or credited to Bonower on monthly payments of Funds. If'the
amount of the Funds held by I.ender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any 4
amount necessary to make up the deficiency in one or more payments as required by I.ender. • ~
Upon payment in full of a!1 sums secured by this Security Instrument, L.ender shall promptly refund to Borrower ~
any Funds held by Lender. if under paragraph 19 the Property is sold or~acquired by L,ender~ 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 Instcument. _
3. Apptfcatioa of Payments. Untess applicable 1aw provides otherwise. all payments received by Lender under
paragraphs 1 and 2 sha!! be applied: first, to late charges due under the Note; second, to prepayment charges due under the
Note; third. to amounts payable under paragraph 2; fourth. to interest due; and last, ta principai due. .
4. Charges; Liens. Borrower shall pay all taaes, assessments. charges, fines and impositions attributable to the ~
Prope~ty which may attain priority over this Security lnstrument, and lease6otd payments or ground rents, if any. ~
Borrower 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 ihe person owed payment. Borrower shall promptly furnish to L.ender all notices of amounts ~
to be paid under this paragraph. If Borrower makes these payments directly. Borrawer shall promptly furnish to I.ender i
r!~Pirts eviden~in~ th~ nayments. ;
~ Borrower shall promptly discharge any lien which has priority over this Security Instrument unless l3orrower: (a) 5
agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good ~
fsiih the lien by, or defends against enforcemeat of the lien in, lega! procetdin~s which in the Lender's opinion operate to ~
prevent the enforcement of the lien or forfeiture of any pact of the Property; or (c) secures from the holder of the lien an
agreement satisfactory to I.ender subordinating the lien to this Secucity Instrument. If Lender determines that any part of
the Property is subject to a lien which may attain priority over this Security Instrument, L.ender may give Borrower a
notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within IO days
of the giving of notice.
5. Hszard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
requires insurance. This insurance shall be maintained in the amounts and ior the periods inat i.ender reyui~cs. T~z
insurance carrier providing the insurance shalt be chosen by Borrower subject to Lender's approval which shall not be
unreasonably withhetd.
All insuranee policies and renewals shall be acceptable to I.ender and shall include a standard mortgage clause.
I.ender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
carrier and Lender. Lender may make proof of loss if not made promptiy by Borrower.
Untess Lender and Borcower 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 I.ender's security is not lessened. If the '
restoration or repair is not economically feasible or Lender's security would 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
Borrower abandons the Property, or does not answer within 30 days a notice from Lender tt,at the insurance carrier has
ofleral to settte a c[aim, then I.ender may coilect the insurance proceeds. I.ender 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.
t Unless Lender and Horrower oiherwise 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.lf ~
i under paragraph 14 the Property is acquired by Lender~ Borrower's right to any insurance policies and proceeds resulting
' from damage to the Pcoperty prior to the acquisition shall pass to Lender to the eatent of the sums secured by this Security
; tnstrument immediately prior to the acquisition.
' 6. Preservation and Matateaance of Pro ~
perty; I.ease6otds. Bonower shall not destroy, damage or substantialiy
~ change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, a
~ Horrower shall comply with the provisions of the lease, and if Bonower acquires fee titte to the Property, the leasehold and
fee title shall not merge unless I.ender agrees to the merger in writing. ,
Protection of I.ender's Rjghts In !he Property; Mortgage Insurance. If Borrower fails to perform the
~ covenants a~nd agreements contained in this Security Instrument, or there is a legal proceeding that may significantly atfect
r Lender's rights in the Property (such as a proceeding in bankruptcy~ probate, for condemnation or to enforce laws or
regulations), then I,ender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights ,
~ in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security '
~ Instrument, appearing in court, paying reasonabfe attorneys' fecs 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 I.ender under this paragraph 7 shall become additional debt of Borrower secured by this
~ Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shalt bear interest from
the date of disbursement at the Note rate and shaii be payabte, with interest, upon notice from Lender to Borrower
; requesting payment.
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` , eooK 539 ~~E 944
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