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<br />RE-RECORM089 -- .x.44483 �'L_.103496
<br />1. Pry a tof Prin li Borrower and Lender covenant and agree as follows:
<br />I. Payment Principal and Interest', Prepayment aced Late
<br />t Charges. Borrower. shall promptly pay when due
<br />the Principal afand interest on the debt evidenced by the Note and illy prepayment and late charges due under the Note.
<br />2, Fnn4i for Taxes and Iawrnaee.
<br />Subject to applicable law or to a written waiver b + Lender.
<br />to Lender on the day onth', ! Borrower shall pso
<br />Y y payments are due under the Note, until the Note is paid in full. a sum ( "Funds' ") equal to
<br />ant-twelfth of (a) yearly taxes and
<br />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
<br />mortgage insurance
<br />premiumr�. and (d). Yearly
<br />premiums. 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 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 Funds,
<br />the analyzing the account. or ver6ing 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.
<br />shall be paid on the Funds. Unless an agreement, is made or applicable taw
<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, annual
<br />an 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 />this 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
<br />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
<br />not sufficient to pay the escrow items when due, rreswer shall pay to Lender any
<br />amount necessary to makeup the deficiency in one or more payments
<br />as required by Lender
<br />Upon payment in full of all sums secured by this Ce,•urit tngtr.
<br />any Funds held by Leader. If under paragraph 19 the Property is sold or rLendte1r
<br />acquired by Lender shall apply. no ter
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time
<br />application as a credit against the sums
<br />secured by this Security Instrument. of
<br />3. Application of Payments. Unless applicable law provides otherwise.
<br />all
<br />paragraphs 1 and 2 shall be applied: first, to late charges due under the Note, second, to payments received es Lender under
<br />Note, third, to amounts payable under prepayment charges due under the
<br />paragraph 2; fourth, to interest due; last,
<br />and to principal due.
<br />d• CbarM Liens. Borrower shall pay all taxes, assessments. charges. fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, leasehold
<br />and payments or ground mots, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph, 2. or if nut paid in that manner, Borrower shall
<br />pay their on time directly to the person owed
<br />payment. Borrower shall) promptly furnish to Lender all notices of amounts .
<br />to be paid under this paragraph. If Borrower makes t a
<br />receipts evidencing the payments Payments directly, Borrower shall promptly furnish to Lender
<br />>--- -ewer• shs'1 prc s ptly W— wharge any hen which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in
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<br />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;
<br />agreement satisfac*y to Lender subordinating. the lien to this Security rument. If Le der determines that f �e lien an
<br />the Property is subject to a lien which attain Y pan of
<br />may priority over this Security Instrument, Lender may
<br />notice identifying the lien. Borrower shall satisflr the lien or take one or more of the actions set forth abocerwi tlBtiorr 10
<br />of thegivirtg of note
<br />. days .
<br />S- H�r�E >iiesurartce. Borrower shall keep the improvements now existing or hereafter erected on-the Property
<br />insured against loas.by fire, hazards included within the team "extended
<br />coverage" and any other hazards rarR hich Lender
<br />requires. insurance; T[lis insurance shall be maintained in the amounts and for tite periods that Lender• requires. The :. r
<br />insurance carrier providing the insurance shall be by
<br />chosen Borrower subject to lxnder's approval which shall not be
<br />unreaserisbly withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause . .
<br />Lender shall have the right to hold the policies and renewals. If Lender requires,;
<br />Borrower shall promptly
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prom not e to tthe insurance' nder
<br />carrier and Lender. Lender may make proof of loss if not_maeie
<br />promptly by Borrower.
<br />Thiess Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair',
<br />of the Property damaged, if the restoration
<br />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
<br />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 does
<br />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
<br />the Property or to pay sums secured b
<br />restore
<br />this Security Instrument, whether or not then due. The 30-da
<br />when the notice isgiven Y Y y period will begin
<br />Unless Lenderand Borrower 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
<br />orchange the amount of the payments. If
<br />under paragraph 19 the Property rs 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
<br />the extent of the sums secured by this Security,
<br />Instrument immediately prior to the acquisition.
<br />6, Preservation and Maintenance
<br />of praper(y; Le2sehotds. 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
<br />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.
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<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,
<br />or there is a legal proceeding that may significantly off ct
<br />Lender's rights in the Property (sUch as a proceeding in bankruptcy, probate, for'onndemnation or to enforce laws or
<br />regulation$), then Lender may do anti pay for whatever is necessary to
<br />in Property.
<br />the protect the saate of the Property and Lenders rights
<br />Lender's actions may include paying any sums secured by a lien which has priority over Hiss Security
<br />Instrurttent, appearing in court, Security
<br />paying reasonable attorneys' fees and entering on the Property to make repairs,
<br />Lender may take action under this paragraph T. bender does not have to do
<br />Although
<br />so.
<br />Airy amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security instrument. Unless Borromir and Lender agree to other terms of ra} ment. tFcrse amounts
<br />the date of disbursement bear
<br />ct`
<br />shall interest from
<br />at the :vote rate and shall he payable. with rnterewi. upon notice from Lender to Borrower
<br />requesting payment.
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