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<br />UmmRM CoMA,tV - Borrower and Lender covenant and agree as follows: 89"—. 101380
<br />L Payes t of Ptlaeipal and Interest; Prgwyineat 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. Fan& for Taxes aad Iaaano e. 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 ("Fun(W") equal to
<br />one - twelfth of: (a) Manly #am 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 />mortpge insurance premiums, if any. That 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 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 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 />shall give 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 ties rke Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Smurity Instrument.
<br />'If the amount of the Funds held by Lender. together with the future monthly payments of Funds payable prior to-
<br />the acre dates of the escrow items, sh&M =eed the amount required to pay the escrow items when due, the excess shall be,
<br />at $uifnwees option, either pry mp* r+iaid to Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amawt: of the Funds held by'�sber is not sufficient to gay the escrow items when due, Borrower shall pay to Lender any
<br />ats m.M necessary to make up tine defrcieacv.in one or more payments as required by Lender.
<br />Upon payment in fudl of all surfs 9=rz d by this Security Im -MmenL Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under parainph.19 the Property is said or acquired by Lender, Lender shall apply, no lazr
<br />thatt immediately prior to the sale of the 1 mtJerty or its acquisition by Lender.. any Funds held by Lender at the thine bf
<br />to tion as a credit against the sums secured by CUs S Da�ra ity Instrument.
<br />3. Apgliattlos of Paynteab. Unless ? p rte law provides otherwise, all payments received b1� Lender under
<br />paisgraphs 1 and 2 shall be applied: first, to late chugm slue under the Note; second, to prepayment charges, due under the
<br />Ncte; third, to amounts payable under par &W. 11x; faarrth, to interest due; and last, to principal due.
<br />4. OwV4- Lien. Borrower shta pry all mr—m., assessments, charges, fines and impositions attributable to the
<br />Ppafm!y which may attain priority.over this Serucicl► Instrument, and leLvAhnld payments or ground. rents, if any.
<br />Boar w shall pay these obligations in the manner prided in paragraph 2, ai- f not paid in that manner,.. Borrower shall
<br />pay them on time directly to the person awed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be p4dt tinder this paragraph. If Bormw= tmltes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts crdencing the payments.
<br />Borrower shall promptly discharge say, which has priority over this Security Instrument unless Borrower. (a)
<br />age in writing to the payment of the obliptr x secured by the lien in a manner acceptable to Lender; (b) contests in good
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<br />Ore lien by, or defends against enforcemenr of t&P lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enfiarcenent of the lien or farfeitairz of aaj, part of the Property; or (c) secures fn-am the holder of the lien an
<br />agrmement satisfa=ry 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 tllte lien. Bcs rower shall satisfy the lien or take one or more of the actions set forth abem within 10 days
<br />of the giving ofncdm
<br />S. Hates i umasm Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by tire, hazards included within the term "extenda coverage' and any other hazards for which Lender
<br />requires insurance. This imsamce shall be maintained in the amounts and rar the periods that Lender requires. The
<br />insurance carrier providing; rite insurance shall be chosen by Borrower subyea to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be aw*tabk to Lender iod shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and rmewals. If Lender requires, Borrower shalt promptly give to Lender
<br />all rw, pts of paid premiums and renewal notices. In die event of loss. Borrcese" shall give prompt notice to the insurance
<br />canter and Lender. Lender may make proof of loss if rung made promptly by Borrower.
<br />Unless Lender and Burrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restorat e= or repair is economically feasible and Lender's security is not lessened. If the
<br />resir.eration or repair is not a t)=-. , ly feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />aWjed to the sums secured by && Se"euty Instrument, whether or not then, due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does mt answer within 30 days a notice Cron Lender that the insurance carrier has
<br />offered tosettle a claim, then Lender may zoItect the inu=ce proceeds. Lender may use the proceeds tore*air or restore
<br />the Property or to pay sums secured by t?4i3 Security tr,*tt:C4�.aecit, whether or not then due. The 30-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherw se agree mwriting, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs i and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquLred by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Propeny pdor 5o Ole a+x uisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acq amoon.
<br />6 Phservation ad Maintenance of Proper; 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 Leader's Itlghts 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 Lendermay do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lender's actions may include paying any sums secured Ly a lien which has priority over this Security
<br />L Instrument, appearing in court, paying reasonable attomeys' 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
<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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