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<br />89--- 100038
<br />UNIFORM COYGNANYS Horrov,�-r and Lender covenant and agree as iollowv •
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written 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") equal to
<br />one- twclflh of (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items art called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional wearily for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, w ether with the future monthly paymetts of )Funds payable prior to
<br />the due dates of the escrow items, shall "teed the, amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. if the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one off` more payments as required by Lender.
<br />Upon payment in full of all sums secured by this Security lnstrument:. Lender shall promptly teFund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or atcxtr'ired by Lender, Lender sliti6l apply, no later
<br />than immediately prior to the sale of the Property or its acquisition by Leader, any Funds held by Lender at the time of
<br />application as at credit against the sums secured by this Security Instrument.
<br />3. Application of Payments,- Unless applicable law provides otherwise. all payments received by Lender ai ;ter
<br />paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due urn the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charges; Dens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain prioriq, over this Security Instrument, and leasehold payments or ground rents. if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower -shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Leader all ttotic4s ofvwunts
<br />to be paid under this paragrob. If Borrower makes these payments directly, Borrower shall promptly furnish to'Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the pavment of the obligation secured by the lien in a manner acceptable to Lender, (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument. Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />i�asnur.°d against loss by fir.; hazards included within the term "extended coverage" and any other hazards for which Lender
<br />rquires insurance. This W;irance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall- be acceptable to Lender and shall include a standard mortgage clause.
<br />I' ender shall have the right to .hold the policies arid. renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and rec ewal notices.' In the event 6F, toss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make puef of loss if not made �rzuttptly by Borrower.
<br />Unless Lender and Borrower othIerwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged. if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property. or dices not answer within 3G days a notice from Lender that the insurance carrierbao .
<br />offered to settle a claim, then Lender may collect the.insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security.- Instrument, whether or not then due. The 30 -daffy period will begin
<br />when the notice is given.
<br />Unless Lender and Borrowere drerwise 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 parajim'ah 19 the Property is acquired by Lender. Borrow.—c s right to any insurance policies and proceeds resulting
<br />from damage io.the.Property prior to the acquisitiod.shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediti;ly pricer to the acquisition.
<br />6. Preservaiicn.m&,Maintenance of Property; Leaseholds. Borrower shall not destroy, 6rnaae or substantially
<br />change the Property, allow the Procy to deteriorate or commit waste. If this Secur55-'(ns1rurr1,:::: is on a leasehold.
<br />Borrower shall comply with the pr•;7 visk �s of the lease, and if Borrower acquires fee title to 0-te Property, the leasehold and
<br />fee title shall not merge unless Lerdtr agrees to the merger in writing.
<br />7. Protection of Under's Rights in the Property; Mortgage Insurance. if Borrower Galls to perform the
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that nnay significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy. probate. for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by alien which has priority over this Security
<br />instrument, appearing in court. paying reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under this paragraph 7. Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. tTnles% Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
<br />the date of disbursement at the Note rate and shall he payable. with mite rem. upon nonce from lender to Norrimer
<br />requesting raymeto
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