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<br />UNIFORM CoVF.NANis Borrower and Lender covenant and agree as folluas. 89-100272
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when doc
<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 - twelfth 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 arty. 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 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 Borraaer 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 />requim naterest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
<br />shall`. jive 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 security for t he sums secured bu:
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Futnds payable prior to
<br />the due dates of the escrow items, shall a -Aceed ilie antouni required to pay the escrow items when &,e, the excess shall be,
<br />at Borcocwer's option, either paompil3 repaid tau Borrower'OT credited to Borrower on monthly pa)mernts of Funds. If the
<br />amount; of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pav to Lender any
<br />amount decessary to make up the deficiency in one or more payments as required by Lender.
<br />l�rpon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Finads held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than irninediately prior to the sale of the Property or its acquisition by Lender. any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
<br />Note, third, to amounts payable under paragraph 2; fourth, to interest due; and last, to F,incipal due.
<br />+. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Propemy which tnay attain priority. over this Security Instrument, and leasehold payments or ground rents. if any.
<br />Borrower shall page 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 Lender all notices of amounts
<br />to be Wid under this paragraph. If Borrower makes these ypay:nents directly. Borrower shall promptly furnish to Lender
<br />recreipmevidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agicCS iii v►TitiiiE iv the t;s j tr:CRt i'•f il:e IIblta:.tion .^,t: tired by the lien in a manner acceptable to Lender, !b) �nntactc in orxxt
<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 />agreerrmnt 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 Ghe 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 are the Property
<br />insuruxf against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requird�s -insurance. This insurance 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 oral renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hdtd the policies and renewals. If Lender 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 made 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 />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 doex.not answer within 30 days a notice from Lender that the insurance carrier 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 ar u'r pay sums secured 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 Harrower ethemise agree its writing, any application of proceeds toprincipa) shalt not extend or
<br />postpone the due date of the manthly+ payments referred to in paragraphs 1 and 2 or change the amount of the payments. if
<br />under paragraph 19 -the Property is acgatred: by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the property prior to tim acquisition shall pass to Lender to the extent of the'sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions -of the lease. and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender'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 tht 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 ~hall become additional debt of Borrower secured by this
<br />Security Instrument. unless Borrower and Lender agree to other terms of payment. these amount~ shall bear interest from
<br />the date of disbursement at the Nore rate and Shall be payable. with interest, upon notice from Lender to Borrower
<br />requesting payment
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