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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 89-- 100293
<br />1. Pavttsent of Pdwi feel and Interest; Pr"ayument and Late Glarges. 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. Fonda for Tarp and Ittewsaae. 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 />one - twelfth of (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />teaaehold 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 are called "escrow items." Lender shay estimate the Funds due on the
<br />basis of current data and reasonable estimates of filture 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 />I,esder may not charge for holding and applying the Funds, analysing the account or verifying the escrow items. unless
<br />Lander pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lends 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 />"live 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 the sums secured by
<br />"Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be.
<br />at Borrower's uptkn, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amount of the FW& held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount neeessa ray to make up the deficiency in one or mace payments as required by Lender.
<br />Upon pay memt in full of all sutras secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, no later
<br />than immedisteiyF prior to the sale of the Property or its acquisition by. Lender, any Funds held by Lender at the time e
<br />application as a e=dit against the surss secured by this Security Instr=cnt.
<br />g. Aptdcatioa of Psy tieeab. Unless applicable law provides otherwise, all payments received by Lender under
<br />par ag apits 1 and 2 shall be applied: first, to late chargea due under the Note; seeon4 to prgmymatt charges due under the
<br />Note; third. to ants pay" wider paragraph 2; fourth, to interest due; and lask to principal due.
<br />4. C%Wo M Una. borrower shall pay all taxes, its, chargm fitter and impositions attributable to the
<br />Property which raay•attain, pelcrrity.over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obHSxddns in the manner provided in paragraph 2. or if not paid in that manner,. Borrower shall
<br />pay tbeut-on time directly to the person owed psymemt. Borrower shall promptly furnish to Lender all notlees of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />reociptsevidencingthepsyments.
<br />Borrower shatl promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the peynmieut of the obiiption secured by the tiers in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcemetmt 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 (e) 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. ilasard Ime mace. Borrower shall keep the improvements now existing or hereafter erected an the Property
<br />insured against loasby fire, hazards included within the term "extended coverage' and any other hazards for which Leander
<br />requires 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 chows by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance polio" and. renewals shall be aeoeptirble to Lender and shall include a standard mortgage clause.
<br />Lender Shall have the right to hold the potici a and renewals. U Leader requires, Borrower slraH promptly give to Lender
<br />all receipts of paid premiums and renewal realises. In the event of loss, Borrower shall give pritrnpt notice to the insurance
<br />carrier and Lender. Leader may make proof of loss if not made promptly by Borrower.
<br />Unless Leader and Borrower otherwise agree in wraiting, 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 abandon the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />oiffed- to settle a claim, then Tender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sutra secured by this Security Instrument, whether or not then due. The "y period will begin
<br />when the notice is given.
<br />Unless Leader and Borrower otherwimagree in writing, any application of proceeds tq 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 />underparegraph 19 the Property is acquired by Lander.. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition sh&H1 pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />f. P eservatim sad Maintenance of Prgpero -, LeasehoW ,. Dotrower shall not destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit: waste. If this Security Instrument is on leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property( old and
<br />fee title shaU not merge unletrsl:iader agrees to the merger in writing. '
<br />7. Protection of I.s Aighb In tie Properq, Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in thisSecurity 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
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<br />regulations), then Lender may do a pay for whatever is necessarf 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 disbursal 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 from
<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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