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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 89-710 01 C, 3
<br />I. Paysseat of Pzlaefpl 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. Faads for Taxes and Imuraace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to bender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds ") equal to
<br />otte- tweHtb oft (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 />mortgn=e insurance pre:rniums, if any. These items are 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 agarcy (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Leander may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Leander pays Borrower interest an the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender tansy agree in writing that interest shalt 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 live to Borrower, without charge, an annual socounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was mock. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, togetihe with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to p y 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. Ir the
<br />amount of the Funds held by Lender is not sulCck nt to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one or more payments as required by Lender.
<br />Upon paymeml in full of all stuns secured by this Security Instrument, Lender shall promptly rePond to Borrower
<br />any Funds held by Lender. If under paragraph 1% the Property is sold or acquired by Lender. Lender shall apply, no later
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />aappbaden as a credit against the suits secured by this Security Instrument.
<br />3~ Applieadom of Payawats. Unless applicable law provides otherwise, all payments received by Leander under
<br />pantgrapbs i and 2 shall be applied: first, to late charges date under the Note; second. to prepayment charges due under the
<br />Next~ third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due:.
<br />C (bargee; Llesu. Borrower shall pay all taxes, assessmenm charges. fines and impositions attributable to the
<br />Property which may attain priority. 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 prawn owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly tarnish to Lender
<br />reodpts evidencing the payments.
<br />Borrower shall nromntly disctv�rge fpm air.. w� h*s grierity ever *hi.; S.trity In— stntment unlw Baraw -cr•: a )
<br />agrees in writing to the payment 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 Tien 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 sadsfac Cory 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. Burrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving ofnotice.
<br />S. Hazard Instwa■ee. Borower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Len&r
<br />requires insurance. This insurance shan be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providmS 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 />Lender shall have the fight to hold the policies and renewals. If Leveler requires. Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not trade promptly by Borrower.
<br />Unless Lender and Borrower otherwise 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 />reatoratioa 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 />Borrowez abandons the Property, or dos not answer within 30 days a notice from Lender that the insurance Barrier has
<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 se cmre d by this Security Instrument, whether or not then due:. The 30 -day period will begin
<br />when the notice is given,.
<br />Unless Lender and Borrovirmothe:rwise agree in writing, any appfncation of proceeds to principal shall net extend or
<br />postpone the due dateofthe monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent: of the sums secured by this Security
<br />Instrument Immediately prior to the acquisition.
<br />6. Pnwwwsti=MW Mainteaaaee of Ptrsp xW LeaweltoW Borrower shall not destroy, damage or substantially
<br />change the Properi -t allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Bor'rowe rsWI codify with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shad not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Leader's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may 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 a lien 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. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest froin
<br />the date of disbursement at the Note rate and shall be payable;. with interest, upon notice from Lender to Borrower
<br />requesting payment.
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