TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenences, and
<br /> fixtures now or hereafter a part of the property. Ail replacements and additions shall also be covered by this Security Instrument.
<br /> Aii of the toregoing is re(erred to in this Security Instrument as the "Property."
<br /> BORROWER COVENANTS that Borrower is lawfully sefzed of the estate hereby conveyed and has the right to grant and
<br /> convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will
<br /> defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. �
<br /> THIS SECURITY INSTRUMENT combines uniiorm covenants tor nationat use and non-uniform covenants with limked � .
<br /> variations by jurisdiction to constitute a unfform security instrument covering real property.
<br /> UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: �
<br /> 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay wnen �
<br /> due the prfncipal ot and interest on the debt evfdenced by the Note and any prepayment and late charges due under the Note.
<br /> 2. Funds for Taxes and Insurance. SubJect to appflcable law or to a wrkten waiver by Lender, Borrower shall pay �'
<br /> to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") tor: (a) yearly �
<br /> taxes and assessments whkh may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold N
<br /> payments or ground rents on the Property, ff any; (c) yearly hazard or property insurance premiums; (d) yearly ilood insurance
<br /> premiums, if any; (e) yearly mortgage insurance premiums, if any; and (f) any sums payable by Borrower to Lender in accordance �
<br /> with the provisions of paragraph 8, in lieu of the payment of mortgege insurance premiums. These items are called "Escrow
<br /> Items." Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender (or a
<br /> tederally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures
<br /> Act of 1974 as amended from time to time, 12 U.S.C. � 2601 et seq. ("RESPA"), unless another lew that applies to the Funds
<br /> sets a lesser amount. If so, Lender may, at any Nme, collect and hold Funds in an amount not to exceed the lesser amount.
<br /> Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future
<br /> Escrow Items or otherwise in accordance with appl�abte law.
<br /> The Funds shall be held in an institution whose deposits are Insured by a federal egency, instrumentalfty, or entky (including
<br /> Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow
<br /> Items. Lender may not charge BoROwer for holding and applying the Funds, annually analyzing the escrow account, or verHying
<br /> the Escrow Items, unless Lender pays Borrower interest on the Funds and appl�able law permits Lender to make such a
<br /> charge. However, Lender mey require Borrower to pay a one-time charge (or en independent real estate tax reporting serv�e
<br /> used by Lender in connection with this loan, unless appticable law provides otherwise. Unless an agreement is made or
<br /> appiicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest o� earnings on the Funds.
<br /> Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower,
<br /> without charge, an annual accounting o( the Funds, shbwfng credits and debits to the Funds and the purpose tor which each
<br /> debit to the Funds was made. The Funds are pledged as additional security for �II sums secured by the Security Instrument.
<br /> If the Funds held by Lender exceed the amounts permitted to be held by appl'�cable law, Lender shall account to Borrower
<br /> tor the excess Funds in accordance with the requirements of applicable law. If the amount o( the Funds held by Lender at any
<br /> time is not sufiicient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower
<br /> shall pay to Lender the amount necessary to make up the deficiency. Bonower shall n7ake up the deticiency in no more then
<br /> twelve monthly payments, at Lender's sole discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower eny Funds
<br /> held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the
<br /> Property, shall apply any Funds held by Lender at the time of acquisition or sale as•a credit against the sums secured by this
<br /> Security Instrument.
<br /> 3. Application Of PBymentS. Unless applicable law provides otherwise, all payments received by Lender under
<br /> paragraphs 1 and 2 shall be applied: tirst, to•eny prepayment charges due under the Note; second, to amounts payable under
<br /> paragraph 2; third, to interest due; fourth, to principal due; and last, to any lete charges due under the Note.
<br /> 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and ImposiNons attr(butable to the
<br /> Property which may attain priority over this Security Instrument, and leasehoid payments or ground rents, N any. Bonower shall
<br /> pey these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time
<br /> directly to the person owed payment. Borrower shall promptly (urnish to Lender all notices of amounts to be paid under this
<br /> paragraph. I( Borrower makes these payments directly, Borrower shall promptly fumish to Lender receipts evidencing the
<br /> payments.
<br /> Borrower shall promptly discharge any lien wh�h has priority over this Securfty Instrument unless Borrower: (a) agrees in
<br /> writing to the payment of the obligation secured by the iien in a manner acceptable to Lender; (b) contests in good faith the
<br /> lien by, or defends egainst eniorcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the
<br /> enforcement of the lien; or (c) secures from the holder ot the lien an agreement satisfactory to Lender subordinating the Ilen to
<br /> this Security Instrument. Ii Lender determines that any part of the Property is subject to e �ien which may attafn priority over this
<br /> Security Instrument, Lender may give Borrower a noHce identifying the flen. Bonower shall satisty the lien or take one or more of
<br /> the actions set forth above within 10 days o( the giving of not�e.
<br /> 5. Hazard OI' PI'OPefly It18Uf8nCe. Borrower shall keep the improvements now existing or hereafter erected on the
<br /> Property insured against loss by tire, hazards included within the term "eMended coverage" and eny other hazards, includ(ng
<br /> tloods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods
<br /> that Lender requires. The insurance carrier providing the insura�ce shall be chosen by Borrower subject to Lender's approval
<br /> which shall not be unreasonabiy withheld. It Borrower fails to maintain coverage described above, Lender may, at Lender's
<br /> option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender
<br /> shalt have the right to hold the policies and renewals. I( Lender requires, Borrower shall promptly gfve to Lender all receipts of
<br /> paid premiums and renewal notices. tn the event of loss, Borrower shell give prompt notice to the insurance carrier and Lender.
<br /> Lender may make proof ot loss if not made promptly by Borrower.
<br /> Unless Lender and Bonower otherwise agree in writing, insurai�ce proceeds shall be epplied to restoration or repair of the
<br /> Property damaged, ii the restoration or repair is economically feasible and Lender's security is not lessened. Ii the restoration or
<br /> reparc is not economically teasible or �ender's securky would be lessened, ►he insurance proceeds shall be applied to the sums
<br /> secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the
<br /> Property, or does not answer wkhin 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then
<br /> Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums
<br /> secured by this Security instrument, whether or not then due. The 30-day period will begin when the notice is given.
<br /> Unless Lender and Bonower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br /> postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br /> under paregraph 21 the Property (s acquired by Lender, Borrower's right to any Insurance policies and proceeds resulting from
<br /> damage to the Property prior to the acquisiNon shall pass to Lender to the extent of the sums by this Security instrument
<br /> immediately prior to the acquisition.
<br /> 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br /> Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within
<br /> sixty days after the execution of this Security instrument and shall continue to occupy the Property as Borrower's principal
<br /> residence for at least one year after the date of occupancy, unless Lender othervvise agrees in wriNng, wh�h consent shall not
<br /> be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not
<br /> destroy, damage or impair the Property, allow�the Property to deteriorate, Qr commk waste on the Property. Borrower shall be in
<br /> default if any forieiture action or proceeding, whether civil or criminal, is begun that in Lender's good taith judgment could result
<br /> in fo�feiture of the Property or othervvise meterially impair the lien created by this Secuffty Instrument or Lender's security interest.
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