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<br /> covenant soda follows-. 90-104103
<br /> UNIFORM COVENANTS. Borrower and Iertder c as
<br /> 1. Payment of Principal end interact; Prepa)rrnerrt and Lane Charges. Borrower shall promptly pay when deer the
<br /> principal of and interest on the dear evidenced by the Note and any prepayment and late charges due under the Note.
<br /> 2. Funds for Taxes aced insumnce. Subject to spplicable law or to a written waiver by Lender, Borrower shall pay to
<br /> r ender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds') equal to
<br /> one -v?=,'rrh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold
<br /> payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance
<br /> premiums. if any. These items are called "escrow items:' Lender may estimate the Funds due on the basis of current data and
<br /> reasonable estimates of future escrow items.
<br /> The Funds shill be held in an institution the deposits or accounts of which ace insured or guaranteed by it federal or
<br /> state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items. Lender
<br /> may not charge for holdin ; and applying the funds, analyzing the account or verifying the escrow items, unless Lender pays
<br /> Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in
<br /> writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid,
<br /> Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without
<br /> charge, an annuAl accounting of the funds showing credits and debits to the Funds and the purpose for which each debit to the
<br /> Funds was made. The Funds are pledged as additional security for the sums secured by this Sec irity Instrument.
<br /> If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the
<br /> due dates of the esccow items, shall er:ceed the amount required to pay the escrow items when due, the excess shall be, at
<br /> 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 not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br /> amount necessa ry to make up the deficiency in one or more payments as required by Lender..
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any
<br /> Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than
<br /> immediately prior to the sale of the Properryor its acquisition by Lender, any Funds held by Lender at the time of application
<br /> 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 I 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 principal due.
<br /> •t. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and imposition:, attributable to the
<br /> Property which may attain priority over this Security !instrument, and leasehold payments or ground rents, if any. Burrower
<br /> shall pay these obligations in the manner provided in paragraph 2. or if not paid in that manner, Borrower shall pay them on
<br /> time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under
<br /> this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing
<br /> the payments.
<br /> Borrower shall promptly discharge any lien 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 a manner acceptable to Lender; (b) contests in goxx!
<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 ut the lien an
<br /> agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the
<br /> Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Harrower a notice
<br /> identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the
<br /> giving of notice.
<br /> 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br /> insured against loss by fire, ha,-:arils included within the term "extended coverage" and any other hazards for which Lender
<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 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. Lender
<br /> shall have the right err hold the policies and renewals. If Lrnder requires, Burrower shall promptly give to Lender all receipts
<br /> of paid premiums and renewal notices. In the event of loss. Borrower shall give prompt notice to the insurance carrier and
<br /> 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 /> restoraric,n or repair is not economically feasible or Lender's security would be lessened, the insurance proccrds shall be
<br /> applied to tht 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 not answer within 30 davs 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 the
<br /> Property or to pay sums secured by this Security Instrument, whether or not then d, T. The 30-day period! will begin when the
<br /> notice is given.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br /> prsrponc the due date of the monthly payments referred to in paragraphs I and 2 or change rho amonnr of the payments. If
<br /> under paragraph 19 the property is acquired by Lender, Borrowers 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 /> Preservation and Maintenance of Property; Leaseholds, Borrower shall not destroy, damage or substantially
<br /> change the Property, allow the Property to deteriorate or cornrnit waste, If (his Security Instrument is on a Icaschuld,
<br /> Bot rower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the Icaschuld and
<br /> (cc title shall nor merge unless lender agrees cU the merger in writing.
<br /> i 7. Protection of Lender's Bights in the Property; Mortgage Insurance, If iorrower fails to perform ncc covenants
<br /> and agreements contained in this Security Instrument, or there is a legal proxeeding that may significantly affect Lender's
<br /> rights in the. Property (such as a pro ceding in bankruptcy, probate, for condemnation or roenforce laws or regulations), then
<br /> lender may do and pay for whatever is necessnry to protr:.t the value of the property arts! Lenders rights in the Property
<br /> I.cndcr's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in
<br /> court, paying reasonable attorneys' fees and entering on the property to make repairs. Although lender m.:y take action
<br /> under this paragraph 7, Lender does not hale to do so.
<br /> Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Burrower secured by this
<br /> Security instrument. Unlcss 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.Borrowcr requesting
<br /> payment.
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