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<br />UNIFORM COVENANTS IMrrower and lender covenant and agree as follows. 89 -1 U 04 9 5
<br />1. Payment of Pr[ncipd 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 tinder 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 />moRgage insurance 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 fixture 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. B mower and
<br />Lander 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 &grower any interest or earnings on the Funds. Lender
<br />shall give to Borrower, without ebaurge, an annual amounting of the Funds showing credits and debits to the nawkb andi &ir e
<br />purpose for which each debit to the Funds was trade. The F.rrar& are pledged as addim tal security for the sunrsW.1er4 ihx
<br />this Security Instntnxmt.
<br />If the amotm, of the Funds held by Lender, together with the Cmture monthly payments of Funds payable prior. to
<br />the due dates of the escrow items, shall exceed the amount required to plea:;, .the escrow items when due, the excess shall be;
<br />at Borrower's option, either promptly repaid to Borrower or credited t o Borrower an, monthly payments of Funds. If the-
<br />amount of the Finds held by Lender is not sufficient to pay the escrow it ems rr:wheni date. Borrower shall pay to Lender any: :
<br />amount necessary to make up the deficiency in one or more payments a s (Ceired by Lender.
<br />Upon payment in bell of all stuns secured-by this Security Insamnent, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph t9 the Property is sold or acquired by Lender, Ue° er shall army, 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 />application as a credit against the sums secured by this Security Instrument.
<br />3. Applicatloes of Psymeata. Unless applicable law provides otherwise. all payments received by Lender under
<br />paragraphs 1 and 2 shall be applied: rust; 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 principal due.
<br />4. Charges; Liens. Bormwer shall pay all taxes. assessments, charges, fines and impositions attributable to the
<br />Property which may attain priorityover this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations 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 paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments. ;
<br />Borrower shall promptly discharge any Gen which has priority over this Security Instrument unless Borrower: (a) 1 -
<br />agma m 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 lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the Gen 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. IS 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 Gen. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />ofthe giving ofnotim = _
<br />S. Han" bumaaee. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against los'sbg fire, hazards included w•#in the testm' "extended caverage" and any other•hatards for which Lender
<br />requites bisusane_ 1113 insurance. shall be maintained ip-ghe amounts and for the periods thit Lender tagnires. The
<br />insurance =ff' er providing the ki'mrance shall be chosen by Borrower subject to Lender's approval which 'shall not be
<br />nnraaonably.iPitltlxna. "
<br />All insairancr.policies and renewals shall be acceptable to Lend= and shall include a swdard mortgage clause.
<br />Lender shall have tlee right tee, hold the policies and renewals. If Lender requires, Borrower shat} promptly give to Lender '►
<br />all rxq of paid Premiums and renewal notices. In the event of loss, Borrower shaN, give prompt notice to the insurance
<br />carrier Lender • Lender may make proof of loss if not made promptly by Borrows¢. . 4
<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 secur4 is not lessened. If the
<br />restoration or repair. is not economically feasible or Lender's security woedd be lessened, the insumane proceeds shall be
<br />applied to the sutras secured by this Security Instrument., whether or alit then due, with any exc'ms paid to Borrower. If
<br />Bommvex abandons the Property, or does not answer witiiia• 30 days a,A0t:ice frotre .11mAer that, tltr insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurkscce proceeds.1Amder nt ay use the proeeefc to repssr or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then dri'e:.TEce.30-day period will begin
<br />vvben the notice is Siv en.
<br />Unless Lender and.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 or change the amount of the. payments. If
<br />under paragraph 19•the Property-is acquired by Leander, Borrower's right to any insurance policies and pro&-eds resulting
<br />frrom damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument iminedix'tidy prior to the acquisition.
<br />6. Premst%n aced Maintenance of Property; Ltaseholds. 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 header'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 Lenders, rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security at
<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 from r-
<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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